To Our Shareholders
09/09/2009 Click here to view the S-1 filing.
It is hard to imagine a major market that will change more in the next decade than the more than $100 billion international lighting market. Many nations, including the United States, are mandating that the 100-year-old ubiquitous incandescent lamp be phased out over the next three to ten years because of its energy inefficiency. What will replace it? While the compact fluorescent lamp (CFL) is more energy efficient, it lacks both the ability to “spotlight” as well as the pleasing aesthetic attributes of incandescent lamps. Other new technologies, including metal halide discharge lamps and LEDs, are quickly emerging as viable and efficient light sources. However, a metal halide lamp often produces too much light and an LED lamp typically produces too little. Into this battle-ground Energy Focus offers an expanding range of products. Our exclusive EFO technology offers the unique combination of high efficiency, directability, pleasing color and just the right output to match those disappearing 100-year-old lamps.
Prompted by the encouraging acceptance of our EFO products, Fiberstars, Inc. changed its name to Energy Focus, Inc. in May 4, 2007. In 2007, EFO lighting solutions accounted for nearly one-third of the company’s sales. In 2008, it is expected to account for more than one-half of sales. To achieve and sustain that level of growth required more than just changing our name from Fiberstars to Energy Focus. It meant refocusing and expanding our strategy; restructuring and strengthening our organization, and providing working capital to position the company to be cash flow positive in 2009.