x
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QUARTERLY
REPORT PURSUANT TO SECTION 13 OR 15(D) OF THE SECURITIES AND EXCHANGE
ACT
OF 1934
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o
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TRANSITION
REPORT PURSUANT TO SECTION 13 OR 15(D) OF THE SECURITIES EXCHANGE
ACT OF
1934
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Commission
file
number 0-24230
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Delaware
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94-3021850
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(State
or other jurisdiction of incorporation or organization)
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(I.R.S.
Employer Identification No.)
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32000
Aurora Rd., Solon, OH
(Address
of principal executive offices)
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44139
(Zip
Code)
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(Registrant’s
telephone number, including area code): (440)
715-1300
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FIBERSTARS,
INC.
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(Former
Name, Former Address and Former Fiscal Year, If Changed Since Last
Report)
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Part
I - FINANCIAL INFORMATION
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Item
1
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Financial
Statements:
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|||
a.
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Condensed
Consolidated Balance Sheets at March 31, 2007 (unaudited) and December
31,
2006
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3
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||
b.
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Condensed
Consolidated Statements of Operations for the Three Months Ended
March 31,
2007 and 2006 (unaudited)
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4
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||||
c.
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Condensed
Consolidated Statements of Comprehensive Income (Loss) for the
Three
Months
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|||
Ended
March 31, 2007 and 2006 (unaudited)
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5
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d.
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Condensed
Consolidated Statements of Cash Flows for the Three Months Ended
March 31,
2007 and
2006 (unaudited)
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6
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e.
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Notes
to Condensed Consolidated Financial Statements (unaudited)
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7
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Item
2
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Management’s
Discussion and Analysis of Financial Condition and Results of
Operations
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13
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Item
3
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Quantitative
and Qualitative Disclosures About Market Risk
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16
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Item
4
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Controls
and Procedures
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17
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Part
II - OTHER INFORMATION
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||||
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Item
1
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Legal
Proceedings
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18
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Item
1A
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Risk
Factors
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18
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Item
6
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Exhibits
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18
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||
Signatures
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19
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|||
Exhibit
Index
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20
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March
31,
2007
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December
31,
2006
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||||||
(unaudited)
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|||||||
ASSETS
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|||||||
Current
assets:
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|||||||
Cash
and cash equivalents
|
$
|
3,923
|
$
|
3,705
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|||
Short-term
investments
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8,179
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12,263
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|||||
Accounts
receivable trade, net
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5,822
|
6,185
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|||||
Inventories,
net
|
8,582
|
7,708
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|||||
Prepaid
and other current assets
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468
|
324
|
|||||
Total
current assets
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26,974
|
30,185
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|||||
Fixed
assets, net
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5,832
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5,978
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|||||
Goodwill,
net
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4,261
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4,247
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|||||
Other
assets
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108
|
182
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|||||
Total
assets
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$
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37,175
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$
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40,592
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LIABILITIES
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|||||||
Current
liabilities:
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|||||||
Accounts
payable
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$
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3,153
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$
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4,202
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|||
Accrued
liabilities
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1,391
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1,671
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|||||
Credit
Line borrowings
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1,185
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1,124
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|||||
Short-term
bank borrowings
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776
|
778
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|||||
Total
current liabilities
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6,505
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7,775
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|||||
Deferred
tax liabilities
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115
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75
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|||||
Long-term
bank borrowings
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1,689
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1,862
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|||||
Total
liabilities
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8,309
|
9,712
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|||||
SHAREHOLDERS’
EQUITY
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|||||||
Common
stock
|
1
|
1
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|||||
Additional
paid-in capital
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54,398
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53,841
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|||||
Accumulated
other comprehensive income
|
636
|
601
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|||||
Accumulated
deficit
|
(26,169
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)
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(23,563
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)
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Total
shareholders’ equity
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28,866
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30,880
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|||||
Total
liabilities and shareholders’ equity
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$
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37,175
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$
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40,592
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Three
months
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|||||||
ended
March 31,
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|||||||
2007
|
2006
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||||||
Net
sales
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$
|
5,009
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$ |
5,327
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|||
Cost
of sales
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3,539
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3,725
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|||||
Gross
profit
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1,470
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1,602
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|||||
Operating
expenses:
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|||||||
Research
and Development
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483
|
456
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|||||
Sales
and marketing
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2,620
|
2,241
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|||||
General
and administrative
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1,078
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1,078
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Restructure
Expense
|
— |
442
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|||||
Total
operating expenses
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4,181
|
4,217
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|||||
Loss
from operations
|
(2,711
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)
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(2,615
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)
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Other
income (expense):
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|||||||
Other
income/(expense)
|
7
|
(4
|
)
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Interest
income/ (expense)
|
99
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127
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|||||
Loss
before income taxes
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(2,605
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)
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(2,492
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)
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Benefit
from (provision for) income taxes
|
(1
|
)
|
51
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||||
Net
loss
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$
|
(2,606)
|
$ |
(2,441
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)
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Net
loss per share - basic and diluted
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$
|
(0.23)
|
$ |
(0.22
|
)
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Shares
used in computing net loss per share -
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|||||||
basic
and diluted
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11,484
|
11,294
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|
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Three
months Ended March 31,
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|||||
2007
|
2006
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||||||
Net
loss
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$
|
(2,606
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)
|
$
|
(2,441
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)
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Other
comprehensive income (loss)
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|||||||
Foreign
currency translation adjustments
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|||||||
56
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65
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||||||
Net
unrealized gain (loss) on securities
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|||||||
(21
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)
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78
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|||||
Comprehensive
loss
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$
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(2,571
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)
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$
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(2,298
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)
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Three
Months Ended March 31,
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|||||||
2007
|
2006
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||||||
Cash
flows from operating activities:
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|||||||
Net
loss
|
$
|
(2,606
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)
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$
|
(2,441
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)
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Adjustments
to reconcile net loss to net cash provided by (used in) operating
activities:
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Depreciation
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323
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226
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Stock-based
compensation
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252
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163
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Unrealized
gain (loss) from marketable securities
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(21
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)
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78
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Provision
for doubtful accounts receivable
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7
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—
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Deferred
Taxes
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40
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—
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Changes
in assets and liabilities:
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Accounts
receivable
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374
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(847
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)
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Inventories
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(853
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)
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(37
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)
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Prepaid
and other current assets
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(143
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)
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292
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Other
assets
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75
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(39
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)
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Accounts
payable
|
(1,052
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)
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(50
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)
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Accrued
liabilities
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(305
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)
|
(1,593
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)
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Total
adjustments
|
(1,303
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)
|
(1,807
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)
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Net
cash (used in) provided by operating activities
|
(3,909
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)
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(4,248
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)
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Cash
flows from investing activities:
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|||||||
Purchase
of short-term investments
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(21,132
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)
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(32,403
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)
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Sale
of short-term investments
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25,302
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32,229
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|||||
Acquisition
of fixed assets
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(159
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)
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(663
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)
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Net
cash provided by (used in) investing activities
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4,011
|
(837
|
)
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Cash
flows from financing activities:
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|||||||
Cash
proceeds from exercise of stock options
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302
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245
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|||||
Proceeds
from credit line borrowings
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63
|
—
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Payments
of short and long-term bank borrowings
|
(180
|
)
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—
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Collection
of loan made to shareholder
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—
|
62
|
|||||
Other
long-term liabilities
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—
|
16
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|||||
Net
cash provided by financing activities
|
185
|
323
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|||||
Effect
of exchange rate changes on cash
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(69
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)
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23
|
||||
Net
(decrease) increase in cash and cash equivalents
|
218
|
(4,739
|
)
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Cash
and cash equivalents, beginning of period
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3,705
|
5,554
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|||||
Cash
and cash equivalents, end of period
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$
|
3,923
|
$
|
815
|
Cost
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Net
unrealized gain
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Estimated
Fair Value
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||||||||
Money
Market Fund
|
$
|
59
|
$
|
—
|
$
|
59
|
||||
Agencies
|
1,639
|
38
|
1,677
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|||||||
Commercial
Paper
|
4,374
|
10
|
4,384
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|||||||
Municipal
Bonds
|
2,059
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—
|
2,059
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|||||||
Total
|
$
|
8,131
|
$
|
48
|
$
|
8,179
|
Three
months ended March 31,
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|||||||
2007
|
2006
|
||||||
Numerator
- net loss
|
$
|
(2,606
|
)
|
$
|
(2,441
|
)
|
|
Denominator
- Basic and Diluted EPS
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|||||||
Weighted
average shares outstanding
|
11,484
|
11,294
|
|||||
Basic
and Diluted net loss per share
|
$
|
(0.23
|
)
|
$
|
(0.22
|
)
|
Three
months ended March 31,
|
|||||||
2007
|
2006
|
||||||
Expected
life of option
|
4.0
years
|
4.0
years
|
|||||
Risk-free
interest rate
|
4.91
|
%
|
4.44
|
%
|
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Expected
Volatility
|
59
|
%
|
78
|
%
|
Three
months ended March 31,
|
|||||||
2007
|
2006
|
||||||
Balance
at the beginning of the period
|
$
|
230
|
$
|
393
|
|||
Accruals
for warranties issued during the period
|
32
|
85
|
|||||
Settlements
made during the period (in cash or in kind)
|
(62
|
)
|
(85
|
)
|
|||
Balance
at the end of the period
|
$
|
200
|
$
|
393
|
March
31,
2007
|
December
31,
2006
|
||||||
Raw
materials
|
$
|
6,905
|
$
|
6,354
|
|||
Inventory
Reserve
|
(428
|
)
|
(899
|
)
|
|||
Finished
goods
|
2,105
|
2,253
|
|||||
$
|
8,582
|
$
|
7,708
|
Three
months ended
|
|||||||
March
31,
|
|||||||
2007
|
2006
|
||||||
U.S.
Domestic
|
$
|
3,288
|
$
|
3,483
|
|||
Other
countries
|
1,721
|
1,844
|
|||||
$
|
5,009
|
$
|
5,327
|
Three
months ended
|
|||||||
March
31,
|
|||||||
2007
|
2006
|
||||||
Pool
and Spa Lighting
|
$
|
2,481
|
$
|
2,796
|
|||
Commercial
Lighting
|
2,528
|
2,531
|
|||||
$
|
5,009
|
$
|
5,327
|
March
31,
2007
|
December
31,
2006
|
||||||
United
States Domestic
|
$
|
8,265
|
$
|
8,406
|
|||
Germany
|
1,677
|
1,674
|
|||||
Other
Countries
|
151
|
145
|
|||||
$
|
10,093
|
$
|
10,225
|
Three
months ended
March
31,
|
|||||||
2007
|
2006
|
||||||
Gross
expenses for research and development
|
$
|
670
|
$
|
880
|
|||
Deduct:
credits from DARPA & DOE contracts
|
(187
|
)
|
(424
|
)
|
|||
Net
research and development expense
|
$
|
483
|
$
|
456
|
Exhibit
Number
|
Description
of Documents
|
|
3.1
|
Certificate
of Ownership And Merger, changing name of Registrant, effective May
8,
2007.
|
|
31.1
|
Rule
13a-14(a) Certification of Chief Executive Officer.
|
|
31.2
|
Rule
13a-14(a) Certification of Chief Financial Officer.
|
|
32.1**
|
Statement
of Chief Executive Officer under Section 906 of the Sarbanes-Oxley
Act of 2003 (18 U.S.C. §1350).
|
|
32.2**
|
Statement
of Chief Financial Officer under Section 906 of the Sarbanes-Oxley
Act of 2003 (18 U.S.C. §1350).
|
ENERGY
FOCUS, INC.
|
||
|
|
|
Date:
May 10, 2007
|
By: |
/s/
John M. Davenport
|
John
M. Davenport
Chief
Executive Officer
|
|
|
|
By: |
/s/
Robert A. Connors
|
|
Robert
A. Connors
Chief
Financial Officer
(Principal
Financial and Accounting
Officer)
|
Exhibit
Number
|
Description
of Documents
|
|
3.1
|
Certificate
of Ownership and Merger, changing name of Registrant, effective May
8,
2007.
|
|
31.1
|
Rule
13a-14(a) Certification of Chief Executive Officer.
|
|
3131.2
|
Rule
13a-14(a) Certification of Chief Financial Officer.
|
|
32.1**
|
Statement
of Chief Executive Officer under Section 906 of the Sarbanes-Oxley
Act of 2003 (18 U.S.C. §1350).
|
|
32.2**
|
Statement
of Chief Financial Officer under Section 906 of the Sarbanes-Oxley
Act of 2003 (18 U.S.C. §1350).
|