U.S. SECURITIES AND EXCHANGE COMMISSION
Washington, DC 20549
Form 10-QSB
(Mark one)
[ X ] Quarterly report pursuant to Section 13 or 15(d) of the Securities and
Exchange Act of 1934
For the quarterly period ended September 30, 1998
[ ] Transition Report Pursuant to Section 13 or 15(d) of the Securities
Exchange Act of 1934
For the transition period from ______________ to ______________.
Commission file number 0-24564
----------------
FIBERSTARS, INC.
(Exact name of registrant as specified in its charter)
----------------
California 94-3021850
- - ------------------------------- ----------------
(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification No.)
2883 Bayview Drive, Fremont, CA 94538
(Address of principal executive offices) (Zip Code)
(Registrant's telephone number, including area code): (510) 490-0719
Indicate by check mark whether the registrant (1) has filed all reports
required to be filed by Section 13 or 15(d) of the Securities Exchange Act of
1934 during the preceding 12 months (or for such shorter period that the
registrant was required to file such reports), and (2) has been subject to such
filing requirements for the past 90 days.
Yes _ X_ No ____
Number of shares of Common Stock outstanding as of September 30, 1998: 3,663,402
Index to Exhibits is at page 14
Page 1
<PAGE>
<TABLE>
FIBERSTARS, INC.
TABLE OF CONTENTS
<CAPTION>
Page
----
Part I - FINANCIAL INFORMATION
<S> <C> <C>
Item 1 Financial Statements:
a. Balance Sheets
September 30, 1998 and December 31, 1997....................................3
b. Statements of Operations
Three and nine months ended September 30, 1998 and 1997.....................4
c. Statements of Cash Flows
Nine months ended September 30, 1998 and 1997...............................5
d. Notes to Financial Statements.............................................6-7
Item 2 Management's Discussion and Analysis of Financial
Condition and Results of Operations...........................................8-12
Part II - OTHER INFORMATION
Item 6 Exhibits and Reports on Form 8-K................................................13
Signatures......................................................................13
EXHIBITS
Index to Exhibits...............................................................14
</TABLE>
Page 2
<PAGE>
PART I. FINANCIAL INFORMATION
Item 1. Financial Statements
<TABLE>
FIBERSTARS, INC.
BALANCE SHEETS
(amounts in thousands)
____________________
<CAPTION>
September 30, December 31,
1998 1997
------------- -------------
(unaudited)
<S> <C> <C>
ASSETS
Current assets:
Cash and cash equivalents $ 1,376 $ 523
Short-term investments 4,080 4,597
Accounts receivable, net 2,708 2,525
Notes and other account receivable 145 161
Inventories 3,385 3,068
Prepaid expenses and other assets 392 373
Deferred income taxes 597 677
--------------- ---------------
Total current assets 12,683 11,924
Fixed assets, net 912 1,003
Goodwill, net 766 0
Investment in joint venture 20 40
Other assets 205 103
Deferred income taxes 0 54
--------------- ---------------
Total assets $ 14,586 $ 13,124
=============== ================
LIABILITIES
Current Liabilities:
Accounts payable $ 1,011 $ 1,068
Accrued expenses 1,895 1,318
Current portion of long-term debt 8 13
--------------- ---------------
Total current liabilities 2,914 2,399
Long-term debt, less current portion 14 17
--------------- ---------------
Total liabilities 2,928 2,416
--------------- ---------------
SHAREHOLDERS' EQUITY
Common stock 0 0
Additional paid-in capital 12,767 12,035
Note receivable from shareholder (75) (75)
Accumulated deficit (1,034) (1,252)
--------------- ---------------
Total shareholders' equity 11,658 10,708
--------------- ---------------
Total liabilities and
shareholders' equity $ 14,586 $ 13,124
=============== ===============
<FN>
The accompanying notes are an integral
part of these financial statements
</FN>
</TABLE>
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<PAGE>
<TABLE>
FIBERSTARS, INC.
STATEMENTS OF OPERATIONS
(amounts in thousands except per share amounts)
(Unaudited)
__________
<CAPTION>
Three Months Ended September 30, Nine Months Ended September 30,
1998 1997 1998 1997
-------- -------- --------- ---------
<S> <C> <C> <C> <C>
Net sales $ 5,477 $ 4,001 $ 16,298 $ 14,076
Cost of sales 3,386 2,266 10,188 7,785
---------- ---------- ----------- -----------
Gross profit 2,091 1,735 6,110 6,291
---------- ---------- ----------- -----------
Operating expenses:
Research and development 301 307 952 896
Sales and marketing 1,192 922 3,812 3,419
General and administrative 372 344 1,151 1,069
---------- ---------- ----------- -----------
Total operating expenses 1,865 1,573 5,915 5,384
---------- ---------- ----------- -----------
Income from operations 226 162 195 907
Other income:
Equity in joint venture's loss 0 (10) (20) (10)
Interest income, net 69 77 177 171
---------- ---------- ----------- -----------
Income before income taxes 295 229 352 1,068
Provision for income taxes (106) (95) (134) (431)
---------- ---------- ----------- -----------
Net income $ 189 $ 134 $ 218 $ 637
========== ========== =========== ===========
Net income per share - basic $ 0.05 $ 0.04 $ 0.06 $ 0.19
========== ========== =========== ===========
Shares used in per share calculation - basic 3,601 3,451 3,557 3,428
========== ========== =========== ===========
Net income per share - diluted $ 0.05 $ 0.04 $ 0.06 $ 0.19
========== ========== =========== ===========
Shares used in per share calculation - diluted 3,653 3,630 3,643 3,440
========== ========== =========== ===========
<FN>
The accompanying notes are an integral
part of these financial statements
</FN>
</TABLE>
Page 4
<PAGE>
<TABLE>
FIBERSTARS INC.
STATEMENTS OF CASH FLOWS
(amounts in thousands)
(unaudited)
__________
<CAPTION>
Nine months ended September 30,
1998 1997
------------- -------------
<S> <C> <C>
Cash flows from operating activities:
Net income $ 218 $ 637
--------------- ---------------
Adjustments to reconcile net income to net cash provided by
operating activities:
Depreciation and amortization 411 327
Provision for doubtful accounts receivable 72 56
Deferred income taxes 134 432
Equity in joint ventures' loss 20 9
Changes in assets & liabilities:
Accounts receivable (207) 824
Inventories (232) (761)
Prepaid expenses and other current assets (17) (276)
Other assets (100) 11
Accounts payable (98) (76)
Accrued expenses 522 325
--------------- ---------------
Total adjustments 505 871
--------------- ---------------
Net cash provided by operating activities 723 1,508
--------------- ---------------
Cash flows from investing activities:
Sale of short-term investments 517 (460)
Repayment of loans made to officers 44
Loans made to officers (30) (47)
Acquisition of business, net of cash acquired (260)
Acquisition of fixed assets (310) (300)
--------------- ---------------
Net cash used in investing activities (39) (807)
--------------- ---------------
Cash flows from financing activities:
Cash proceeds from sale of common stock 182 82
Repayment of long term debt (13) (9)
--------------- ---------------
Net cash provided by financing activities 169 73
--------------- ---------------
Net increase in cash and cash equivalents 853 774
Cash and cash equivalents, beginning of period 523 1,520
--------------- ---------------
Cash and cash equivalents, end of period $ 1,376 $ 2,294
=============== ===============
Non-cash investing activities:
Common stock issued in connection with acquisitions $ 550
===============
<FN>
The accompanying notes are an integral
part of these financial statements
</FN>
</TABLE>
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<PAGE>
FIBERSTARS, INC.
NOTES TO FINANCIAL STATEMENTS
1. Summary of Significant Accounting Policies
Interim Financial Statements (unaudited)
Although unaudited, the interim financial statements in this report reflect all
adjustments, consisting of normal recurring accruals, which are, in the opinion
of management, necessary for a fair statement of financial position, results of
operations and cash flows for the interim periods covered and of the financial
condition of the Company at the interim balance sheet dates. The results of
operations for the interim periods presented are not necessarily indicative of
the results expected for the entire year.
The year-end balance sheet information was derived from audited financial
statements, but does not include all disclosures required by generally accepted
accounting principles. These financial statements should be read in conjunction
with the Company's audited financial statements and notes thereto for the year
ended December 31, 1997, contained in the Company's 1997 Annual Report to
Shareholders.
Earnings Per Share
The Company presents its earnings per share (EPS) in accordance with SFAS 128,
which requires the presentation of basic and diluted EPS. Basic EPS is computed
by dividing income available to common shareholders by the weighted average
number of common shares outstanding for the period. Diluted EPS is computed by
giving effect to all dilutive potential common shares that were outstanding
during the period. Dilutive potential common shares consist of incremental
shares upon exercise of stock options and warrants.
<TABLE>
In accordance with the disclosure requirements of SFAS 128, a reconciliation of
the numerator and denominator of basic and diluted EPS is provided as follows
(in thousands, except per share amounts):
<CAPTION>
Three months Nine months
ended Sept.30, ended Sept. 30,
--------------- ---------------
1998 1997 1998 1997
---- ---- ---- ----
<S> <C> <C> <C> <C>
Numerator - Basic and diluted EPS
Net income $ 189 $ 134 $ 218 $ 637
Denominator - Basic EPS
Weighted average shares outstanding 3,601 3,451 3,557 3,428
Basic earnings per share $0.05 $0.04 $0.06 $0.19
===== ===== ===== =====
Denominator - Diluted EPS
Denominator - Basic EPS 3,601 3,451 3,557 3,428
Effect of dilutive securities:
Stock options 52 179 86 12
----- ----- ----- -----
3,653 3,630 3,643 3,440
----- ----- ----- -----
Diluted earnings per share $0.05 $0.04 $0.06 $0.19
===== ===== ===== =====
</TABLE>
Options and warrants to purchase 945,065 and 603,725 shares of the Company's
common stock were outstanding for the three and nine months ended September 30,
1998, respectively. Warrants to purchase 100,000 shares of the Company's common
stock were outstanding for the three and nine months ended September 30, 1997.
These potentially dilutive securities were not included in the calculation of
diluted earnings per share because their exercise prices were greater than the
average market price of the common shares outstanding for the period.
Page 6
<PAGE>
2. Inventories
Inventories are stated at the lower of cost (first-in, first-out) or market and
consist of the following (in thousands):
September 30, December 31,
------------- ------------
1998 1997
---- ----
(unaudited)
Raw materials $ 2,367 $ 2,020
Finished Goods 1,018 1,048
-------- --------
$ 3,385 $ 3,068
======== ========
3. Comprehensive Income
The Company has adopted the provisions of Statement of Financial Accounting
Standards No. 130, "Reporting Comprehensive Income," effective January 1, 1998.
This statement requires the disclosure of comprehensive income and its
components in a full set of general-purpose financial statements. Comprehensive
income is defined as net income plus revenues, expenses, gains and losses that,
under generally accepted accounting principles, are excluded from net income.
The Company does not have any components of comprehensive income which are
excluded from net income for the nine months ended September 30, 1997 and 1998
and, as such, no separate statement of comprehensive income has been presented.
4. Recent Pronouncements
In June 1997, the FASB issued Statement of Financial Accounting Standards No.
131, "Disclosures About Segments of an Enterprise and Related Information"
("SFAS 131"), which supersedes SFAS 14, "Financial Reporting for Segments of a
Business Enterprise." SFAS 131 changes current practice under SFAS 14 by
establishing a new framework on which to base segment reporting and also
requires interim reporting of segment information. SFAS 131 is effective for
fiscal years beginning after December 1997. Disclosures would not be required
until the first quarter immediately subsequent to the fiscal year in which SFAS
131 is effective. The Company is evaluating the requirements of SFAS 131 and the
effects, if any, on the Company's current reporting and disclosures.
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<PAGE>
FIBERSTARS, INC.
Item 2. Management's Discussion and Analysis of Financial Condition and Results
of Operations
The following discussion should be read in conjunction with the attached
financial statements and notes thereto.
Net Sales
Q3'98 Q3'97 change YTD'98 YTD'97 change
Net Sales ($000) $5,477 $4,001 37% $16,298 $14,076 16%
Net sales increased over the third quarter of 1997 in the Company's Commercial
Lighting and Pool markets. For the year to date period, all of the growth is
accounted for by Commercial Lighting, with the Pool group approximately even
with a year ago.
Gross Profit
Q3'98 Q3'97 change YTD'98 YTD'97 change
Gross profit ($000) $2,091 $1,735 21% $6,110 $6,291 -3%
Percentage of net sales 38% 43% 38% 45%
The Company's gross margin for the quarter and year to date at 38% of net sales
was lower than the same period in the previous year, due to the increased cost
of the new System 2000(TM) Pool product line, as well as product mix changes in
the previous year. The decrease in gross margin as a percentage of net sales is
based on changes in sales volume, product mix, pricing, cost of materials and
labor, and other factors. There can be no assurance that the Company's
operations and gross margin will not continue to be adversely affected by
changes in these factors or by disruptions in supplies or production capacity,
or other factors.
Research and Development
Q3'98 Q3'97 change YTD'98 YTD'97 change
Research & Development ($000) $301 $307 -2% $952 $896 6%
Percentage of net sales 6% 8% 6% 6%
Third quarter Research and Development expenses were 6,000 lower than the same
quarter a year earlier. During the first nine months of the year, Research and
Development spending increased by 6% over the comparable period of 1997. The
increase in the year to date period resulted from higher levels of project
expenses, including regulatory testing expenses. Projects nearing completion
include a new commercial illuminator, the Model 601, which is expected to ship
beginning in the fourth quarter, and a new product line for the Pool & Spa
market called the Fiberstars Lifetime Illuminator(TM), also to be introduced in
the fourth quarter. The Company expects to continue
Page 8
<PAGE>
investing significantly in research and product development; however, dollars
and percentages may vary from period to period.
Sales and Marketing
Q3'98 Q3'97 change YTD'98 YTD'97 change
Sales & Marketing ($000) $1,192 $922 29% $3,812 $3,419 12%
Percentage of net sales 22% 23% 23% 24%
Sales and marketing expenses have increased in absolute dollars over the
comparable periods of 1997, primarily due to increases in commissions and
certain promotional expenses that are directly related to sales volume. Total
selling and marketing expenses increased less rapidly than revenue, and thus
have decreased as a percentage of sales.
General and Administrative
Q3'98 Q3'97 change YTD'98 YTD'97 change
General & Administrative ($000) $372 $344 8% $1,151 $1,069 8%
Percentage of net sales 7% 9% 7% 8%
General and administrative expenses increased by 8% in the third quarter and the
year-to-date period compared to the corresponding periods of 1997. These
increases resulted from the hiring of additional personnel and other associated
costs to support growth in the Company's business. Nevertheless, general and
administrative expenses decreased as a percentage of sales.
Other Income (Expense)
Q3'98 Q3'97 change YTD'98 YTD'97 change
Other Income (Expense) ($000) $69 $67 3% $157 $161 -2%
Percentage of net sales 1% 2% 1% 1%
Other income is primarily comprised of interest income, which varies from
quarter to quarter based on fluctuations in interest rates and in the Company's
cash balances, it also includes the Company's equity interest in the income or
loss of its joint venture. Net other income increased slightly to $69,000 for
the quarter and decreased to $157,000 year-to-date, from $67,000 and $161,000
for the comparable periods of 1997. The decrease for the year to date period is
primarily attributable to lower cash balances. The company expects joint venture
income or loss to be immaterial for the foreseeable future.
Net Income
Q3'98 Q3'97 change YTD'98 YTD'97 change
Net Income ($000) $189 $134 41% $218 $637 -66%
Percentage of net sales 4% 3% 1% 5%
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<PAGE>
The increase in net income for the quarter is attributable primarily to the
growth in net sales, offset in part by lower margins. The net income for the
year to date in 1998 is lower than a year ago because of higher costs associated
with the new Pools product line.
Other Events
On August 31, 1998 Fiberstars purchased the net assets of Fibreoptic
International Inc. for $315,000 in cash and issuance of 103,108 shares of
Fiberstars, Inc. The acquisition is not expected to be material to this year's
results but it is expected to provide added growth potential to Fiberstars'
commercial lighting business in the future.
Certain Factors Affecting Future Performance
This Report contains forward looking statements, including without limitation
those set forth in "Management's Discussion and Analysis of Financial Condition
and Results of Operations." The Company's actual performance may vary from such
statements as a result of a variety of risk and other factors, including those
set forth in this Report.
The Company's quarterly and annual operating results are affected by a wide
variety of factors that could materially and adversely affect revenues and
profitability. These include factors relating to competition, such as
competitive pricing pressure and the potential introduction of new products by
competitors; manufacturing factors, including constraints in the Company's
manufacturing and assembly operations and shortages or increases in the prices
of raw materials and components; sales and distribution factors, such as changes
in product mix or distribution channels resulting in lower margins, the loss of
a significant distributor or sales representative, the loss of a significant
customer or swimming pool builder, the effects of volume discounts that may be
granted to larger customers, product returns and exchanges, and seasonality of
sales, particularly in sales of the Company's swimming pool and spa products,
product development and introduction problems, such as increased research,
development and marketing expenses associated with new product introductions,
delays in the introduction of new products and technologies and adverse effects
on sales of existing products; as well as other factors, including levels of
expenses relative to revenue levels, personnel changes, expenses that may be
incurred in litigation, generally prevailing economic conditions and
fluctuations in foreign currency exchange rates. The Company's annual and
quarterly results of operations also have been and will continue to be affected
by national economic and other factors, including factors effecting the
construction of new swimming pools, such as housing market trends, interest
rates and the weather.
The Company's quarterly operating results are also substantially affected by the
market's acceptance of the Company's products and the level and timing of orders
received. Historically the Company has shipped a substantial portion of its
quarterly sales in the last month of each of the second and fourth quarters of
the year. Significant portions of the Company's expenses are relatively fixed in
advance based upon the Company's forecasts of future sales. If sales fall below
expectations in any given quarter, the Company's operating results will be
adversely affected. In addition, certain product development and marketing
expenditures may vary significantly from quarter to quarter and are made well in
advance of potential resulting revenue.
Sales of the Company's pool and spa lighting products, which currently are
available only with newly constructed pools and spas, are highly dependent upon
the level of such construction. Sales or commercial lighting products also
depend significantly upon the level of new building construction. Because of the
seasonality of construction, the Company's sales of swimming pool and commercial
lighting products, and thus the Company's overall revenues and income, have
tended to be significantly lower in the first quarter of each year. Various
economic and other trends may alter these seasonal trends from year to year, and
the Company cannot predict the extent to which these seasonal trends will
continue.
In the fourth quarter of 1998, the Company plans to introduce two major new
products. Pool & Spa product called the Fiberstars Lifetime Illuminator(TM),
which is expected to outperform similar types of illuminators in the
marketplace. The model 601 illuminator for the Commercial Lighting market will
replace and is expected to outperform our current brightest illuminator model
501, and also reduces cost. If either of these new products fails to meet these
expectations, the Company's operating results may be adversely affected.
Competition is increasing in a number of the Company's markets. A number of
companies offer fiber optic lighting products for commercial lighting, some of
which compete directly with the Company's products. Some of these companies have
substantially greater financial, technical and marketing resources than the
Company. The Company anticipates that any future growth in fiber optic lighting
will be accompanied by continuing increases in competition, which could
accelerate growth in the market for fiber optic lighting, but which could
adversely affect the Company's operating results.
The Company was awarded its ninth patent in the quarter. However, the Company
believes that the success of its business depends primarily on its technical
innovation, marketing abilities and responsiveness to customer requirements,
rather than on patents, trade secrets, trademarks, copyrights and other
intellectual property rights. Nevertheless, the Company has a policy of seeking
to protect its intellectual property through, among other things, the
prosecution of patents with respect to certain of the Company's technologies.
There are many issued patents and pending patent applications in the field of
fiber optic technology, and certain of the Company's competitors hold and have
applied for patents related to fiber optic lighting. Although to date the
Company has not been involved in litigation challenging its intellectual
property rights or asserting intellectual property rights of others, the Company
has in the past received communications from third parties asserting rights in
the Company's patents or that the Company's technology infringes intellectual
property rights held by such third parties. Although, based on information
currently available to it, the Company does not believe that any such claims
involving its technology or patents are meritorious, there can be no assurance
that the Company will not be required to engage in litigation to protect its
patent rights or to defend the claim of others. In the event of litigation to
determine the validity of any third party claims or claims by the Company
against such third party, such litigation, whether or not determined in favor of
the Company, could result in significant expense to the Company.
Page 10
<PAGE>
Year 2000 Compliance
Many currently installed computer systems and software products are not capable
of distinguishing 20th century dates from 21st century dates. As a result, in
less than two years, computers systems and/or software used by many companies in
a very wide variety of applications will experience operating difficulties
unless they are modified or upgraded to adequately process information
involving, related to or dependent upon the century change. Significant
uncertainty exists in the software and information services industries
concerning the scope and magnitude of problems associated with the century
change. In light of the potentially broad effects of the year 2000 on a wide
range of business systems, the Company's products and services may be affected.
The Company is currently assessing the potential overall impact of the impending
century change on the Company's business, financial condition and results of
operations.
The Company utilizes and is dependent upon data processing computer hardware and
software to conduct its business, and recently completed an upgrade of all such
hardware and software. The Company has completed its assessment of its own
computer systems and based upon this assessment, the Company believes its
computer systems are "Year 2000 compliant;" that is, capable of adequately
distinguishing 21st century dates from 20th century dates. However, there can be
no assurance that the Company has timely identified or will timely indentify and
remediate all significant Year 2000 problems in its own computer systems, that
remedial efforts subsequently made will not involve significant time and
expense, or that such problems will not have a material adverse effect on the
Company's business, operating results and financial condition. If unforeseen
internal disruptions occur, the Company believes that its existing disaster
recovery program, which includes the mannual processing of certain key
transactions, would significantly mitigate the impact.
The Company has made only limited efforts to determine the extent of and
minimize the risk that the computer systems of the Company's suppliers or
customers are not Year 2000 compliant, or will not become compliant on a timely
basis. The Company expects that the process of making inquries with these
customers and suppliers will be ongoing through the end of 1999. If Year 2000
problems prevent any of the Company's suppliers from timely delivery of products
or services required by the Company, the Company's operating results could be
materially adversely affected. However, the Company currently estimates that its
costs to address Year 2000 issues relating to its suppliers will not be
material, and that these costs will be funded from its operating cash flows. The
Company has identified and will continue to identify alternative suppliers in
the event its preferred suppliers become incapable of timely delivering products
or services required by the Company. The Company's suppliers are generally
locally or regionally based, which tends to lessen the Company's exposure from
the lack of readiness of any single supplier.
The Company may also face delays in receipt of payments from customers with
unresolved Year 2000 problems, and such delays could materially adversely affect
the Company's operating results. To the extent any such delays are significant
or protracted, the Company's quarterly results would be adversely affected. The
Company intends to continually reassess this risk as it receives communications
about the status of its customers with regard to Year 2000 issues, and if
necessary, adjust its account sales and policies accordingly.
Page 11
<PAGE>
The Company's estimates of Year 2000 costs relating to it's own computer systems
include consulting fees and costs to remediate or replace hardware and software
as well as non-incremental costs resulting from redeployment of internal
resources. The Company's estimates of costs associated with the Year 2000 issues
of its customers and suppliers are management's best estimates, which were
derived from numerous assumptions of future events, including the continued
availability of certain resources, third party remediation plans with regard to
Year 2000 issues, and other factors. There can be no assurance that these
estimates are correct and actual results could differ materially from these
estimates. Specific factors that might cause such material differences include,
but are not limited to, the availability and cost of personnel trained in this
area, the ability to locate and correct all relevant computer costs, and similar
uncertainties.
Liquidity and Capital Resources
For the nine months ended September 30, 1998, cash and short term investments
increased by $336,000 including approximately $54,000 from the purchase of the
assets of Fibreoptics International. Cash provided by operating activities
totaled $723,000, which was offset to an extent by cash used for the acquisition
of Fibreoptic International and purchases of fixed assets.
The Company has a $1 million unsecured line of credit for working capital
purposes and a $500,000 term loan commitment to finance equipment purchases.
Both lines expire on June 28, 1999. At September 30, 1998, the Company had no
borrowings outstanding against either of these lines of credit.
The Company believes that existing cash balances, together with the Company's
bank lines of credit and funds that may be generated from operations, will be
sufficient to finance the Company's currently anticipated working capital
requirements and capital expenditure requirements for at least the next twelve
months.
Page 12
<PAGE>
PART II - OTHER INFORMATION
Item 6. Exhibits and Reports on Form 8-K
(a) The following exhibits have been filed with this Report:
Exhibit 27 - Financial Data Schedule
(b) No reports on Form 8-K were filed by the Company during the
period covered by this report.
Items 1, 2, 3, 4 and 5 are not applicable and have been omitted.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned, thereunto duly authorized.
Fiberstars, Inc.
Date: November 13, 1998 By: /s/ Robert A.Connors
-------------------------------
Robert A.Connors
Chief Financial Officer
(Principal Financial and Accounting
Officer)
Page 13
<PAGE>
INDEX TO EXHIBITS
Exhibit Page
Number Number
- - ------- ------
27 Financial Data Schedule
Page 14
<TABLE> <S> <C>
<ARTICLE> 5
<CIK> 0000924168
<NAME> $2uztiip
<MULTIPLIER> 1,000
<S> <C>
<PERIOD-TYPE> 9-MOS
<FISCAL-YEAR-END> DEC-31-1998
<PERIOD-START> JAN-01-1998
<PERIOD-END> SEP-30-1998
<CASH> 1,376
<SECURITIES> 4,080
<RECEIVABLES> 2,708
<ALLOWANCES> 335
<INVENTORY> 3,385
<CURRENT-ASSETS> 12,683
<PP&E> 3,028
<DEPRECIATION> 2,116
<TOTAL-ASSETS> 14,586
<CURRENT-LIABILITIES> 2,914
<BONDS> 0
0
0
<COMMON> 12,767
<OTHER-SE> 0
<TOTAL-LIABILITY-AND-EQUITY> 14,586
<SALES> 16,298
<TOTAL-REVENUES> 16,455
<CGS> 10,188
<TOTAL-COSTS> 10,188
<OTHER-EXPENSES> 5,915
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 0
<INCOME-PRETAX> 352
<INCOME-TAX> 134
<INCOME-CONTINUING> 0
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 218
<EPS-PRIMARY> 0.06
<EPS-DILUTED> 0.06
</TABLE>
