Fiberstars Announces First Quarter Results

Company to Launch New Energy Efficient Lighting Technology



Apr 25, 2001, 01:00 ET from Fiberstars, Inc.

    FREMONT, Calif., April 25 /PRNewswire/ -- Fiberstars, Inc. (Nasdaq:   FBST),
 the world's leading fiber optic lighting company, announced today its 2001
 first quarter financial results which are in line with guidance given earlier
 this month.
     Sales for the first quarter were $6,876,000, down 22% from the first
 quarter a year ago.  The net loss for the quarter was $717,000, or $0.15 per
 share, which compares to a loss of $378,000 or $0.09 per share in the first
 quarter of last year.
     As previously announced the Company attributed the sales softness to the
 in-ground swimming pool product line.  Concerns about the strength of the
 economy and unseasonable cold or wet weather in some regions were believed to
 be the major factors affecting pool shipments in the first quarter.  Many pool
 builders report they anticipate lower sales of pools this year than in 2000,
 consequently the Company expects continuing softness for the year in this
 market.
     Sales for the commercial lighting business were flat for the quarter.
 Sales increased in the U.S. while international sales declined.  There was a
 sizable year over year increase in the Company's commercial lighting backlog
 going into the second quarter.  Both Fiberstars' U.S. and international
 commercial lighting sales groups anticipate growth for the full year of 2001.
     Fiberstars also announced on April 6, 2001 that it cut expenses by 10% in
 response to the sales slowdown and the resulting first quarter loss.
 Satellite facilities in Dallas and Virginia are being closed and the Company
 has reduced its workforce by 11%, or 18 people, taking a
 $118,000 restructuring charge recorded as part of General & Administrative
 expenses.  Even though cautious about the outlook for the remainder of the
 year, the Company continues to project profitability for 2001 based on the
 reduction of spending and modest overall sales growth.  However, results in
 the second quarter will be crucial to this projection, and the year will be
 reassessed at the end of the June quarter.
     "Despite the first quarter's disappointing results, we continue to be
 optimistic about the future because in May we intend to introduce a technology
 breakthrough in energy efficient lighting," commented David N. Ruckert,
 President and Chief Executive Officer of Fiberstars.  "The initial products of
 the new technology will be called Fiberstars EFO(TM) (Efficient Fiber Optics)
 in the commercial lighting market and Fiberstars Underground(TM) in the
 swimming pool market."
     For commercial lighting, Fiberstars EFO is expected to consume up to 80%
 less energy than commercial ceiling downlight systems.  It is three times more
 energy efficient than halogen lamp fixtures, commonly used in retail stores
 today.  Fiberstars EFO systems are actually more energy efficient than compact
 fluorescent lamp fixtures, which are often recommended for their energy
 efficiency.  It is expected that the EFO system will be comparable in light
 output and price to the commercially specified downlights, and therefore we
 expect this technology to broaden Fiberstars potential market to include
 certain general lighting applications estimated to be a $5 billion market
 segment of the $54 billion world lighting market.
     For the swimming pool market, Fiberstars Underground is the first buriable
 fiber optic lighting illuminator available.  It is designed to be installed
 out of sight in the backyard, and to produce more light than previous
 Fiberstars pool systems.  The unit will also be silent because it has no fan
 and will be equipped with a long lasting metal halide lamp.  Fiberstars
 Underground also is designed to have a much larger fiber capacity than
 previous units, so the same unit that lights the pool can be used to light
 many other backyard features, including spas, waterfalls, pool perimeters and
 landscape lighting.
     To help further reduce the cost of this new energy efficient lighting
 technology, the Advanced Technology Program of the National Institute of
 Standards and Technology, of the U.S. Dept. of Commerce, awarded Fiberstars a
 $2,000,000 grant over three years to help develop a lower cost manufacturing
 process for new high performance fiber the Company has developed.  It was
 announced last week that the Company has begun construction on a new chemical
 lab in Solon, OH, to support this project.
     Last week, the Company also announced that it had received its
 twenty-fourth patent, covering certain optics for the new technology, and that
 it has received a U.L. listing for the Fiberstars Underground illuminator.
     Fiberstars will have a conference call to discuss its results on
 April 25, at 8:30 a.m. Pacific Time.  This call will be at
 http://www.fiberstars.com in the Investor Relations area of the site or by
 going to http://www.mkr-group.com .  A replay will be available on Fiberstars'
 website beginning approximately 12:00 noon Pacific Time on April 26, 2001.
 
     About Fiberstars
     Fiberstars is the world's leading supplier of fiber optic lighting.
 Fiberstars products are designed, manufactured and marketed in the commercial
 lighting, sign and swimming pool and spa markets.  Fiber optic lighting
 provides aesthetic, safety, energy savings and maintenance cost benefits over
 conventional lighting.  Fiberstars has 24 patents on its technologies for
 fiber optic lighting.  Customers include fast food restaurant chains, theme
 parks and casinos, hotels, retail stores, swimming pool builders, spa
 manufacturers and many others.  Company headquarters are located at 44259
 Nobel Dr., Fremont, California.  The Company has subsidiary offices in
 Cleveland, Seattle, England and Germany.  Telephone 510-490-0719.  Web site:
 http://www.fiberstars.com .
     Forward-looking statements in this release and presentational materials on
 the web site are made pursuant to the safe harbor provisions of the Private
 Securities Litigation Reform Act of 1995.  Such forward-looking statements
 include statements regarding expected sales, revenue, reduced expenses, new
 products and net profit, the business outlook for 2001 and beyond, predictions
 of new technology introductions, ship dates and energy efficiency and
 statements or implications that the new technology will contribute to future
 growth.  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 the slowing U.S. economy and its effects on
 Fiberstars' markets, a failure to develop marketable products from new
 technologies, unanticipated costs of integrating acquisitions into the
 Fiberstars operation, risks related to developing and marketing new products,
 delays in manufacturing of products, increased competition, a significant
 slowdown in geographic economies where the Company markets its products, 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, 2000.  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.
 
                                  FIBERSTARS, INC.
                            CONSOLIDATED BALANCE SHEETS
                               (amounts in thousands)
 
                                                      March 31,   December 31,
                                                        2001           2000
 
     ASSETS
     Current assets:
 
         Cash and cash equivalents                       $360         $1,230
         Accounts receivable trade, net                 8,819          7,329
         Notes and other accounts receivables             104            125
         Inventories, net                               6,204          5,672
         Prepaids and other current assets                351            411
         Deferred income taxes                          2,107          1,412
           Total current assets                        17,945         16,179
 
     Fixed assets, net                                  2,795          2,888
     Goodwill, net                                      4,942          5,150
     Other assets                                         311            245
     Deferred income taxes                                235            157
           Total assets                               $26,228        $24,619
 
 
     LIABILITIES
     Current liabilities:
         Accounts payable                              $2,847         $3,513
         Accrued expenses                               1,847          2,056
         Line of credit                                 3,186
         Current portion of long-term debt                  8              8
           Total current liabilities                    7,888          5,577
     Long-term debt, less current portion                 522            482
           Total liabilities                            8,410          6,059
 
     SHAREHOLDERS' EQUITY
     Common stock                                           1              1
     Value of warrants outstanding                      2,722          2,722
     Additional paid-in capital                        15,800         15,721
     Notes receivable from shareholder                    (75)           (75)
     Cumulative translation adjustments                  (382)          (278)
     Retained earnings (accumulated deficit)             (248)           469
           Total shareholders' equity                  17,818         18,560
             Total liabilities and
              shareholders' equity                    $26,228        $24,619
 
 
                                  FIBERSTARS, INC.
                       CONSOLIDATED STATEMENTS OF OPERATIONS
                  (amounts in thousands except per share amounts)
 
                                                         Three months ended
                                                              March 31,
                                                        2001           2000
 
 
     Net sales                                         $6,876         $8,782
     Cost of sales                                      4,267          5,090
             Gross profit                               2,609          3,692
 
     Operating expenses:
 
         Research and development                         651            426
         Sales and marketing                            2,199          2,209
         General and administrative                       890            694
         Write-off in-process technology acquired                        938
             Total operating expenses                   3,740          4,267
 
                 Loss from operations                 (1,131)          (575)
 
     Other income (expense):
         Equity in joint venture's income                   9
         Interest income (expense), net                   (40)          (15)
 
             Loss before income tax                    (1,162)         (590)
     Benefit from income taxes                            445            212
 
             Net loss                                  $(717)         $(378)
 
 
     Net loss per share - basic                        $(0.15)       $(0.09)
 
     Shares used in computing net
      income per share - basic                          4,687          4,308
 
     Net loss per share - diluted                     $(0.15)        $(0.09)
 
     Shares used in computing net
      income per share - diluted                        4,687          4,308
 
                      MAKE YOUR OPINION COUNT - Click Here
                http://tbutton.prnewswire.com/prn/11690X71545580
 
 

SOURCE Fiberstars, Inc.
    FREMONT, Calif., April 25 /PRNewswire/ -- Fiberstars, Inc. (Nasdaq:   FBST),
 the world's leading fiber optic lighting company, announced today its 2001
 first quarter financial results which are in line with guidance given earlier
 this month.
     Sales for the first quarter were $6,876,000, down 22% from the first
 quarter a year ago.  The net loss for the quarter was $717,000, or $0.15 per
 share, which compares to a loss of $378,000 or $0.09 per share in the first
 quarter of last year.
     As previously announced the Company attributed the sales softness to the
 in-ground swimming pool product line.  Concerns about the strength of the
 economy and unseasonable cold or wet weather in some regions were believed to
 be the major factors affecting pool shipments in the first quarter.  Many pool
 builders report they anticipate lower sales of pools this year than in 2000,
 consequently the Company expects continuing softness for the year in this
 market.
     Sales for the commercial lighting business were flat for the quarter.
 Sales increased in the U.S. while international sales declined.  There was a
 sizable year over year increase in the Company's commercial lighting backlog
 going into the second quarter.  Both Fiberstars' U.S. and international
 commercial lighting sales groups anticipate growth for the full year of 2001.
     Fiberstars also announced on April 6, 2001 that it cut expenses by 10% in
 response to the sales slowdown and the resulting first quarter loss.
 Satellite facilities in Dallas and Virginia are being closed and the Company
 has reduced its workforce by 11%, or 18 people, taking a
 $118,000 restructuring charge recorded as part of General & Administrative
 expenses.  Even though cautious about the outlook for the remainder of the
 year, the Company continues to project profitability for 2001 based on the
 reduction of spending and modest overall sales growth.  However, results in
 the second quarter will be crucial to this projection, and the year will be
 reassessed at the end of the June quarter.
     "Despite the first quarter's disappointing results, we continue to be
 optimistic about the future because in May we intend to introduce a technology
 breakthrough in energy efficient lighting," commented David N. Ruckert,
 President and Chief Executive Officer of Fiberstars.  "The initial products of
 the new technology will be called Fiberstars EFO(TM) (Efficient Fiber Optics)
 in the commercial lighting market and Fiberstars Underground(TM) in the
 swimming pool market."
     For commercial lighting, Fiberstars EFO is expected to consume up to 80%
 less energy than commercial ceiling downlight systems.  It is three times more
 energy efficient than halogen lamp fixtures, commonly used in retail stores
 today.  Fiberstars EFO systems are actually more energy efficient than compact
 fluorescent lamp fixtures, which are often recommended for their energy
 efficiency.  It is expected that the EFO system will be comparable in light
 output and price to the commercially specified downlights, and therefore we
 expect this technology to broaden Fiberstars potential market to include
 certain general lighting applications estimated to be a $5 billion market
 segment of the $54 billion world lighting market.
     For the swimming pool market, Fiberstars Underground is the first buriable
 fiber optic lighting illuminator available.  It is designed to be installed
 out of sight in the backyard, and to produce more light than previous
 Fiberstars pool systems.  The unit will also be silent because it has no fan
 and will be equipped with a long lasting metal halide lamp.  Fiberstars
 Underground also is designed to have a much larger fiber capacity than
 previous units, so the same unit that lights the pool can be used to light
 many other backyard features, including spas, waterfalls, pool perimeters and
 landscape lighting.
     To help further reduce the cost of this new energy efficient lighting
 technology, the Advanced Technology Program of the National Institute of
 Standards and Technology, of the U.S. Dept. of Commerce, awarded Fiberstars a
 $2,000,000 grant over three years to help develop a lower cost manufacturing
 process for new high performance fiber the Company has developed.  It was
 announced last week that the Company has begun construction on a new chemical
 lab in Solon, OH, to support this project.
     Last week, the Company also announced that it had received its
 twenty-fourth patent, covering certain optics for the new technology, and that
 it has received a U.L. listing for the Fiberstars Underground illuminator.
     Fiberstars will have a conference call to discuss its results on
 April 25, at 8:30 a.m. Pacific Time.  This call will be at
 http://www.fiberstars.com in the Investor Relations area of the site or by
 going to http://www.mkr-group.com .  A replay will be available on Fiberstars'
 website beginning approximately 12:00 noon Pacific Time on April 26, 2001.
 
     About Fiberstars
     Fiberstars is the world's leading supplier of fiber optic lighting.
 Fiberstars products are designed, manufactured and marketed in the commercial
 lighting, sign and swimming pool and spa markets.  Fiber optic lighting
 provides aesthetic, safety, energy savings and maintenance cost benefits over
 conventional lighting.  Fiberstars has 24 patents on its technologies for
 fiber optic lighting.  Customers include fast food restaurant chains, theme
 parks and casinos, hotels, retail stores, swimming pool builders, spa
 manufacturers and many others.  Company headquarters are located at 44259
 Nobel Dr., Fremont, California.  The Company has subsidiary offices in
 Cleveland, Seattle, England and Germany.  Telephone 510-490-0719.  Web site:
 http://www.fiberstars.com .
     Forward-looking statements in this release and presentational materials on
 the web site are made pursuant to the safe harbor provisions of the Private
 Securities Litigation Reform Act of 1995.  Such forward-looking statements
 include statements regarding expected sales, revenue, reduced expenses, new
 products and net profit, the business outlook for 2001 and beyond, predictions
 of new technology introductions, ship dates and energy efficiency and
 statements or implications that the new technology will contribute to future
 growth.  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 the slowing U.S. economy and its effects on
 Fiberstars' markets, a failure to develop marketable products from new
 technologies, unanticipated costs of integrating acquisitions into the
 Fiberstars operation, risks related to developing and marketing new products,
 delays in manufacturing of products, increased competition, a significant
 slowdown in geographic economies where the Company markets its products, 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, 2000.  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.
 
                                  FIBERSTARS, INC.
                            CONSOLIDATED BALANCE SHEETS
                               (amounts in thousands)
 
                                                      March 31,   December 31,
                                                        2001           2000
 
     ASSETS
     Current assets:
 
         Cash and cash equivalents                       $360         $1,230
         Accounts receivable trade, net                 8,819          7,329
         Notes and other accounts receivables             104            125
         Inventories, net                               6,204          5,672
         Prepaids and other current assets                351            411
         Deferred income taxes                          2,107          1,412
           Total current assets                        17,945         16,179
 
     Fixed assets, net                                  2,795          2,888
     Goodwill, net                                      4,942          5,150
     Other assets                                         311            245
     Deferred income taxes                                235            157
           Total assets                               $26,228        $24,619
 
 
     LIABILITIES
     Current liabilities:
         Accounts payable                              $2,847         $3,513
         Accrued expenses                               1,847          2,056
         Line of credit                                 3,186
         Current portion of long-term debt                  8              8
           Total current liabilities                    7,888          5,577
     Long-term debt, less current portion                 522            482
           Total liabilities                            8,410          6,059
 
     SHAREHOLDERS' EQUITY
     Common stock                                           1              1
     Value of warrants outstanding                      2,722          2,722
     Additional paid-in capital                        15,800         15,721
     Notes receivable from shareholder                    (75)           (75)
     Cumulative translation adjustments                  (382)          (278)
     Retained earnings (accumulated deficit)             (248)           469
           Total shareholders' equity                  17,818         18,560
             Total liabilities and
              shareholders' equity                    $26,228        $24,619
 
 
                                  FIBERSTARS, INC.
                       CONSOLIDATED STATEMENTS OF OPERATIONS
                  (amounts in thousands except per share amounts)
 
                                                         Three months ended
                                                              March 31,
                                                        2001           2000
 
 
     Net sales                                         $6,876         $8,782
     Cost of sales                                      4,267          5,090
             Gross profit                               2,609          3,692
 
     Operating expenses:
 
         Research and development                         651            426
         Sales and marketing                            2,199          2,209
         General and administrative                       890            694
         Write-off in-process technology acquired                        938
             Total operating expenses                   3,740          4,267
 
                 Loss from operations                 (1,131)          (575)
 
     Other income (expense):
         Equity in joint venture's income                   9
         Interest income (expense), net                   (40)          (15)
 
             Loss before income tax                    (1,162)         (590)
     Benefit from income taxes                            445            212
 
             Net loss                                  $(717)         $(378)
 
 
     Net loss per share - basic                        $(0.15)       $(0.09)
 
     Shares used in computing net
      income per share - basic                          4,687          4,308
 
     Net loss per share - diluted                     $(0.15)        $(0.09)
 
     Shares used in computing net
      income per share - diluted                        4,687          4,308
 
                      MAKE YOUR OPINION COUNT - Click Here
                http://tbutton.prnewswire.com/prn/11690X71545580
 
 SOURCE  Fiberstars, Inc.