EXHIBIT 99.1
Investor Contact: Media Contact:
Bob Connors, CFO Nathan Tinker
Fiberstars, Inc. Antenna Group (for Fiberstars)
440-715-1300 (203) 229-0358
FIBERSTARS CONFIRMS RECORD EFO SALES FOR Q2 2006
SOLON, Ohio--August 10, 2006--Fiberstars, Inc. (Nasdaq: FBST), the global leader
in commercial fiber optic lighting, today announced financial results for the
second quarter of 2006.
Second quarter sales for Fiberstars EFO, the company's flagship product, were
$938,000, more than twice sales of $456,000 for the same quarter of 2005 and
more than three times the EFO sales for the first quarter of 2006. EFO sales for
the first half of 2006 were $1,201,000, compared to sales of $766,000 for the
first half of 2005. As previously reported, the company attributed much of its
second quarter 2006 EFO shipment results to the successful first phase of the
Department of Defense Navy ship installation.
Total net sales for the second quarter of 2006 were $7,709,000, a 1% increase
over second quarter 2005 net sales of $7,645,000. On July 6, Fiberstars
announced that its second quarter loss would be comparable to its first quarter
loss this year, which it was. The loss for the quarter was $2,299,000 ($0.20 per
share), which compares to the loss in the same period of 2005 of $763,000 ($0.10
per share). Net sales for the six month period ending June 30, 2005 were
$13,037,000 compared to $14,465,000 for the same six month period in 2005, a
decline of 10% primarily due to lower pool lighting product sales in the first
quarter of 2006. The loss for the first six months of 2005 was $4,741,000 ($0.42
per share) compared to a loss of $1,813,000 ($0.24 per share) for the same
period in 2004.
"The record EFO sales in Q2, along with favorable results from tests at the W
Hotel chain and Dillards department stores, is encouraging news regarding the on
going rollout of Fiberstars EFO. Both sales situations represent thrusts into
new markets, one with a trend setting hotel group and the other with a soft
goods retail operation," said John Davenport, CEO of Fiberstars. "In addition,
we're encouraged by the second quarter results from our pool lighting products,
as they rebounded from a slow start in the first quarter with second quarter
results nearly equal to last year. This improvement was largely due to sales
from initial shipments of Fiberstars WPC(TM), a new pool equipment control
product and Fiberstars Lightstream(TM), a new LED pool product."
"The loss for the first half was affected by new expenses this year for stock
options and for compliance with Sarbanes-Oxley section 404. We also had costs
associated with the expansion of our marketing visibility at a number of trade
shows, and new product start up costs, both of which should decrease in the
second half of the year," Mr. Davenport noted.
Fiberstars management will host a brief conference call today, Thursday, August
10, 2006, at 11:30 a.m. EST (8:30 a.m. PST) to review the second quarter 2006
preliminary results and other corporate events, followed by a Q & A session.
Dialing 1-800-507-9434 (US/Canada) or 1-706-634-5544 (International/Local) can
access the call. The conference ID number is 4020859. Participants are asked to
call the assigned number approximately 10 minutes before the conference call
begins.
The conference call will also be available over the Internet at
http://www.fiberstars.com/ in the Investor Relations area of the site or by
going to http://www.mkr-group.com/. A replay of the conference call will be
available two hours after the call for the following 7 days by dialing 1-800-
642-1687 (US/Canada) or 1-706-645-9291 (international/local) and entering the
pass code 4020859. Also, a replay of the conference call will be available over
the Internet at http://www.fiberstars.com/ as of August 11, 2006, and will
remain available for one year in the Investor Relations area of the site or by
going to http://www.mkr-group.com/
ABOUT FIBERSTARS, INC.
Fiberstars, Inc., (NASDAQ: FBST) is the leading supplier of fiber optic lighting
and the world's only supplier of EFO, a lighting technology which is more
efficient than conventional electric lamps. Fiberstars products are designed,
manufactured and marketed for the commercial lighting, sign and swimming pool,
and spa markets. Fiberstars fiber optic lighting provides energy savings,
aesthetic, safety and maintenance cost benefits over conventional lighting.
Customers include supermarket chains, retail stores, fast food restaurants,
theme parks and casinos, hotels, swimming pool builders, spa manufacturers and
many others. Company headquarters are located at 32000 Aurora Rd., Solon, OH
44139. The Company has additional offices in Pleasanton, CA, New York City,
United Kingdom and Germany. For more information, see www.fiberstars.com.
Forward-looking statements in this release are made pursuant to the safe harbor
provisions of the Private Securities Litigation Reform Act of 1995. Such
forward-looking statements include statements regarding the goals and business
outlook for 2006 and thereafter, future pool market sales, the expected growth
of and percentage of the company to be represented by EFO, expected product
development and introductions, expected overall sales growth and profitability,
and expected benefits, revenues and products from the Department of Defense Navy
contract. Investors are cautioned that all forward-looking statements involve
risks and uncertainties. Actual results may differ materially from the results
predicted. Risk factors that could affect the Company's future include, but are
not limited to, a slowing of the U.S. and world economy and its effects on
Fiberstars' markets, failure to develop marketable products from new
technologies, failure of EFO or other new products to meet performance
expectations, unanticipated costs of integrating acquisitions into the
Fiberstars operation, delays in manufacturing of products, increased
competition, other adverse sales and distribution factors and greater than
anticipated costs and/or warranty expenses. For more information about potential
factors which could affect Fiberstars financial results, please refer to
Fiberstars' SEC reports, including its Annual Report on Form 10-K for the year
ended December 31, 2005, and its quarterly reports on Form 10-Q. These
forward-looking statements speak only as of the date hereof. Fiberstars
disclaims any intention or obligation to update or revise any forward-looking
statements.
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FIBERSTARS, INC.
CONDENSED
CONSOLIDATED BALANCE SHEETS
(amounts in thousands)
JUNE 30, DECEMBER 31,
2006 2005
------------ ------------
(unaudited)
ASSETS
Current assets:
Cash and cash equivalents $ 589 $ 5,554
Short-term investments 17,896 18,024
Accounts receivable trade, net 7,061 6,287
Inventories, net 7,676 7,852
Prepaid and other current assets 756 879
------------ ------------
Total current assets 33,978 38,596
============ ============
Fixed assets, net 5,297 3,422
Goodwill, net 4,189 4,135
Other assets -- 56
------------ ------------
Total assets $ 43,464 $ 46,209
LIABILITIES
Current liabilities:
Accounts payable $ 2,334 $ 2,623
Accrued liabilities 2,674 3,924
Short-term bank borrowings 1,604 389
------------ ------------
Total current liabilities 6,612 6,936
Long-term bank borrowings 2,037 1,089
------------ ------------
Total liabilities 8,649 8,025
SHAREHOLDERS' EQUITY
Common stock 1 1
Additional paid-in capital 53,104 52,452
Unearned stock-based compensation -- (397)
Accumulated other comprehensive income 363 41
Accumulated deficit (18,653) (13,913)
------------ ------------
Total shareholders' equity 34,815 38,184
------------ ------------
Total liabilities and shareholders' equity $ 43,464 $ 46,209
============ ============
The accompanying notes are an integral part of these financial statements
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FIBERSTARS, INC.
CONDENSED
CONSOLIDATED STATEMENTS OF OPERATIONS
(amounts in thousands except per share amounts)
(unaudited)
THREE MONTHS SIX MONTHS
ENDED JUNE 30, ENDED JUNE 30,
----------------------- -----------------------
2006 2005 2006 2005
---------- ---------- ---------- ----------
Net sales $ 7,709 $ 7,645 $ 13,037 $ 14,465
Cost of sales 5,381 4,723 9,106 9,000
---------- ---------- ---------- ----------
Gross profit 2,328 2,922 3,931 5,465
Operating expenses:
Research and development 436 400 891 877
Sales and marketing 2,609 2,388 4,853 4,708
General and administrative 1,537 747 2,615 1,558
Restructure Expense 195 197 636 197
Total operating expenses 4,777 3,732 8,995 7,340
---------- ---------- ---------- ----------
Loss from operations (2,449) (810) (5,064) (1.875)
Other income (expense):
Other income/(expense) (43) 37 (59) 40
Interest income (expense), net 108 (2) 246 (5)
---------- ---------- ---------- ----------
Profit (loss) before income taxes (2,384) (775) (4,877) (1,840)
Benefit from (provision for) income taxes 85 12 136 27
---------- ---------- ---------- ----------
Net loss $ (2,299) $ (763) $ (4,741) $ (1,813)
Net loss per share - basic and diluted $ (.20) $ (0.10) $ (.42) $ (0.24)
Shares used in computing net income per share -
basic and diluted 11,356 7,585 11,299 7,783
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