<PAGE>

                                  UNITED STATES
                       SECURITIES AND EXCHANGE COMMISSION
                             Washington, D.C. 20549

                                   Form 10-Q/A
                                 Amendment No. 1

   (Mark One)
   [X]  QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
        EXCHANGE ACT OF 1934

                  For the quarterly period ended June 30, 2002

                                       OR

   [_]  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 0-49881



                             Catalina Lighting, Inc.
             (Exact Name of Registrant as Specified in Its Charter)


            Florida                                       59-1548266
(State or Other Jurisdiction of                        (I.R.S. Employer
 Incorporation or Organization)                       Identification No.)

           18191 N.W. 68th Avenue
               Miami, Florida                                 33015
  (Address of Principal Executive Offices)                  (Zip Code)

       Registrant's Telephone Number, Including Area Code: (305) 558-4777


     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 [_]

     The number of shares of the registrant's common stock, $.01 par value,
outstanding as of the close of business on August 5, 2002 was 4,413,460, which
reflects the one-for-five reverse stock split effective April 8, 2002.

<PAGE>

                                EXPLANATORY NOTE

     This Amendment No. 1 (this "Amendment") to Catalina Lighting, Inc.'s
Quarterly Report on Form 10-Q for the quarter ended June 30, 2002 (the "Form
10-Q"), is being filed solely to correct a typographical error in the
Condensed Consolidated Balance Sheets for Catalina Lighting, Inc. and
Subsidiaries (the "Balance Sheets"), whereby the dollar amount (in thousands)
for "Other current assets" as of June 30, 2002 was stated inadvertently as
$14,069 instead of $6,909. No additional typographical errors were made in the
Balance Sheets, including without limitation in the dollar amount for "Total
current assets" as of June 30, 2002. In accordance with Rule 12b-15 under the
Securities Exchange Act of 1934, this Amendment sets forth the complete text of
Item 1 of which the Balance Sheets are a part. Other than the foregoing, no
revisions have been made to the financial statements or any other disclosure
contained in the Form 10-Q.

<PAGE>

                    CATALINA LIGHTING, INC. AND SUBSIDIARIES

                         PART I - FINANCIAL INFORMATION

Item 1.   Financial Statements

                    CATALINA LIGHTING, INC. AND SUBSIDIARIES
                      Condensed Consolidated Balance Sheets
                                 (In thousands)

<TABLE>
<CAPTION>
                                                                          June 30,          September 30,
                                 Assets                                     2002                2001
                                 ------                              -----------------    ----------------
                                                                        (Unaudited)              *
<S>                                                                  <C>                  <C>
Current assets
   Cash and cash equivalents                                                $   4,041           $   4,613
   Restricted cash equivalents and short-term investments                           -               1,066
   Accounts receivable, net of allowance for doubtful accounts
      of $600 and $1,423, respectively                                         24,793              27,761
   Inventories                                                                 39,495              37,425
   Other current assets                                                         6,909               5,114
                                                                     -----------------    ----------------

          Total current assets                                                 75,238              75,979

Property and equipment, net                                                    18,856              30,227
Goodwill, net                                                                  28,227              28,812
Other assets, net                                                               8,655              11,079
                                                                     -----------------    ----------------
          Total assets                                                      $ 130,976           $ 146,097
                                                                     =================    ================
</TABLE>

*Condensed from audited financial statements.

See accompanying notes to condensed consolidated financial statements.
(Continued on Page 2)

<PAGE>

                    CATALINA LIGHTING, INC. AND SUBSIDIARIES
                Condensed Consolidated Balance Sheets (continued)
                        (In thousands, except share data)

<TABLE>
<CAPTION>
                                                                     June 30,          September 30,
           Liabilities and Stockholders' Equity                        2002                2001
           ------------------------------------                -------------------   -----------------
                                                                   (Unaudited)               *
<S>                                                            <C>                   <C>
Current liabilities
   Accounts payable                                                     $  27,994           $  27,586
   Revolving credit facilities                                              2,387               7,078
   Term loans                                                               2,553                 818
   Bonds payable related to assets held for sale                                -                 900
   Current maturities of other long-term debt                                 480                 878
   Other current liabilities                                               13,107              12,466
                                                               -------------------   -----------------
       Total current liabilities                                           46,521              49,726

    Revolving credit facilities                                            13,615              16,366
    Term loans                                                             18,101              23,479
    Subordinated notes                                                      2,746               6,110
    Bonds payable                                                               -               4,200
    Other long-term debt                                                      748               1,085
    Other liabilities                                                       5,205               5,926
                                                               -------------------   -----------------
        Total liabilities                                                  86,936             106,892
                                                               -------------------   -----------------

Minority interest                                                           1,113               1,073
                                                               -------------------   -----------------

Commitments and Contingencies                                                   -                   -

Stockholders' equity
   Preferred stock, $.01 par value
       authorized 1,000,000 shares; none issued
   Common stock, $.01 par value                                                44                  33
       authorized 20,000,000 shares; issued and outstanding
       4,413,460 and 3,304,036 shares outstanding
   Additional paid-in capital                                              38,349              34,411
   Retained earnings                                                        6,495               6,764
   Accumulated other comprehensive income (loss)                              500                (615)
   Treasury stock, at cost, 128,387 shares                                 (2,461)             (2,461)
                                                               -------------------   -----------------
         Total stockholders' equity                                        42,927              38,132
                                                               -------------------   -----------------

                                                                        $ 130,976           $ 146,097
                                                               ===================   =================
</TABLE>

* Condensed from audited financial statements

See accompanying notes to condensed consolidated financial statements.

<PAGE>

                    CATALINA LIGHTING, INC. AND SUBSIDIARIES
                 Condensed Consolidated Statements of Operations
                                   (Unaudited)
                      (In thousands, except per share data)

<TABLE>
<CAPTION>
                                                               Three Months Ended                      Nine Months Ended
                                                                    June 30,                               June 30,
                                                          ------------------------------        ----------------------------
                                                              2002             2001                 2002            2001
                                                          -------------    -------------        -------------   ------------
<S>                                                       <C>              <C>                  <C>             <C>
Net sales                                                   $   53,351       $   60,548           $  163,463      $ 180,945
Cost of sales                                                   42,920           52,571              131,329        155,095
                                                          -------------    -------------        -------------   ------------
Gross profit                                                    10,431            7,977               32,134         25,850

Selling, general and administrative expenses                     8,121           10,072               24,739         30,840
Litigation settlement                                              959             (714)                 959           (714)
Loss on disposal of warehouse and related equipment                 --               --                1,098             --
                                                          -------------    -------------        -------------   ------------
Operating income (loss)                                          1,351           (1,381)               5,338         (4,276)
                                                          -------------    -------------        -------------   ------------

Other expenses:
   Interest expense                                             (1,899)          (1,729)              (5,751)        (5,135)
   Other income (expenses)                                         (62)              64                   12             46
                                                          -------------    -------------        -------------   ------------
Total other income (expenses)                                   (1,961)          (1,665)              (5,739)        (5,089)
                                                          -------------    -------------        -------------   ------------

Income (loss) before income taxes                                 (610)          (3,046)                (401)        (9,365)

Income tax expense (benefit)                                      (201)            (629)                (132)        (1,681)
                                                          -------------    -------------        -------------   ------------
Net income (loss)                                           $     (409)      $   (2,417)          $     (269)     $  (7,684)
                                                          =============    =============        =============   ============

Weighted average number of
  shares outstanding
      Basic                                                      3,371            1,472                3,241          1,472
      Diluted                                                    3,371            1,472                3,241          1,472

Earnings (loss) per share
      Basic                                                 $    (0.12)      $    (1.64)          $    (0.08)     $   (5.22)
      Diluted                                               $    (0.12)      $    (1.64)          $    (0.08)     $   (5.22)

</TABLE>

See accompanying notes to condensed consolidated financial statements.

<PAGE>

                    CATALINA LIGHTING, INC. AND SUBSIDIARIES
                 Condensed Consolidated Statements of Cash Flows
                                   (Unaudited)
                                 (In thousands)

<TABLE>
<CAPTION>
                                                                      Nine Months Ended
                                                                          June 30,
                                                                  ------------------------
                                                                     2002          2001
                                                                  ----------    ----------
<S>                                                               <C>           <C>
CASH FLOWS FROM OPERATING ACTIVITIES
  Net income (loss)                                                $   (269)     $ (7,684)
  Loss on disposal of warehouse and related equipment                 1,098             -
  Adjustments for non-cash items                                      4,981         3,644
  Change in assets and liabilities                                    2,613         9,641
                                                                  ----------    ----------
  Net cash provided by operating activities                           8,423         5,601
                                                                  ----------    ----------

CASH FLOWS FROM INVESTING ACTIVITIES
  Capital expenditures                                                 (599)       (4,204)
  Proceeds from sale of property and equipment                        8,454            95
  Purchase of minority interest                                          --        (1,029)
  Increase in Ring acquisition costs                                     --          (119)
  Decrease (increase) in restricted cash equivalents and
      short-term investments                                          1,066          (144)
                                                                  ----------    ----------
  Net cash provided by (used in) investing activities                 8,921        (5,401)
                                                                  ----------    ----------

CASH FLOWS FROM FINANCING ACTIVITIES
  Proceeds from other long-term debt                                     --           323
  Payments on other long-term debt                                     (737)       (1,125)
  Payments on bonds payable                                          (5,100)         (900)
  Net proceeds from revolving credit facilities                          --         4,906
  Net payments on revolving credit facilities                        (7,619)           --
  Payments on term loans                                             (4,013)       (2,459)
  Sinking fund redemption payments on bonds payable                    (515)         (655)
                                                                  ----------    ----------
  Net cash used in financing activities                             (17,984)           90
                                                                  ----------    ----------

  Effect of exchange rate changes on cash                                68            33
                                                                  ----------    ----------
  Net (decrease) and increase in cash and cash equivalents             (572)          323
  Cash and cash equivalents at beginning of period                    4,613         2,309
                                                                  ----------    ----------
  Cash and cash equivalents at end of period                       $  4,041      $  2,632
                                                                  ==========    ==========
</TABLE>

                       Supplemental Cash Flow Information
                                          Nine Months Ended
                                              June 30,
                                      ----------------------
                                         2002        2001
                                      ----------  ----------
                                          (In thousands)

          Cash paid for:
             Interest                  $  3,248    $  3,738
             Income taxes              $    626    $  1,589

On June 14, 2002, the Company entered into a transaction whereby it converted
$6.0 million of subordinated debt into stockholders' equity.

See accompanying notes to condensed consolidated financial statements.

<PAGE>

                    CATALINA LIGHTING, INC. AND SUBSIDIARIES
              Notes to Condensed Consolidated Financial Statements
                                   (Unaudited)

1.   Summary of Significant Accounting Policies

Basis of Presentation

     The accompanying unaudited condensed consolidated financial statements of
Catalina Lighting, Inc. and Subsidiaries (the "Company") have been prepared in
accordance with the accounting policies described in the Company's Annual Report
on Form 10-K for the fiscal year ended September 30, 2001 and should be read in
conjunction with the consolidated financial statements and notes which appear in
that report. These statements do not include all of the information and
footnotes required by accounting principles generally accepted in the United
States of America ("generally accepted accounting principles") for complete
financial statements.

     In the opinion of management, the condensed consolidated financial
statements include all adjustments (which consist mostly of normal, recurring
accruals) considered necessary for a fair presentation. The results of
operations for the three months and nine months ended June 30, 2002 may not
necessarily be indicative of operating results to be expected for any subsequent
quarter or for the full fiscal year due to seasonal fluctuations in the
Company's business, changes in economic conditions and other factors.

Accounts Receivable

     The Company provides allowances against accounts receivable for sales
deductions, returns and doubtful accounts. The Company's agreements with its
major customers provide for various sales allowances (i.e., deductions given the
customer from purchases made from the Company), the most common of which are for
volume discounts, consumer product returns and cooperative advertising. These
allowances are usually defined as a percentage of the gross sales price and are
recognized as a reduction of gross sales revenue at the time the related sales
are recorded. If the customer agreement does not provide for the deduction of
the allowance amount directly from the amount invoiced the customer at time of
billing, the Company records an accrual for the amounts due. These accrued sales
allowances are settled periodically either by subsequent deduction from the
accounts receivable from the customer or by cash payment. For financial
statement presentation purposes, these sales allowances are netted against
accounts receivable and amounted to $8,304,000 and $10,442,000 at June 30, 2002
and September 30, 2001, respectively.

Comprehensive Loss

     Comprehensive income (loss) consisted of the following:

<TABLE>
<CAPTION>
                                             Three Months Ended June 30,     Nine Months Ended June 30,
                                            -----------------------------   ----------------------------
                                               2002               2001         2002              2001
                                            ----------          ---------   ----------         ---------
                                                    (In thousands)                  (In thousands)
<S>                                         <C>                 <C>         <C>                <C>
Net income (loss)                           $    (409)          $ (2,417)   $    (269)         $ (7,684)
Foreign currency translation loss               1,621                (98)         976              (833)
Change in unrealized loss on derivative
  instrument, net of taxes                          -                 10          139               (42)
                                            ----------          ---------   ----------         ---------
  Total comprehensive income (loss)         $   1,212           $ (2,505)   $     846          $ (8,559)
                                            ==========          =========   ==========         =========
</TABLE>

New Accounting Pronouncements

     Statement of Financial Accounting Standards No. 141, "Business
Combinations" ("SFAS 141"), was issued in July 2001. SFAS 141 addresses
financial accounting and reporting for business combinations and supercedes
Accounting Principles Board Opinion No. 16, "Business Combinations", and
Statement of Financial Accounting No. 38, "Accounting for Preacquisition
Contingencies of Purchased Enterprises". All business combinations in the scope
of

<PAGE>

                    CATALINA LIGHTING, INC. AND SUBSIDIARIES
              Notes to Condensed Consolidated Financial Statements
                                   (Unaudited)

SFAS 141 are to be accounted for under the purchase method. SFAS 141 became
effective June 30, 2001. The adoption of SFAS 141 did not have a material impact
on the Company's financial position, results of operations or cash flows for the
nine months ended June 30, 2002.

Statement of Financial Accounting Standards No. 142, "Goodwill and Other
Intangible Assets" ("SFAS 142"), was also issued in July 2001. SFAS 142
addresses financial accounting and reporting for intangible assets acquired
individually or with a group of other assets at acquisition. SFAS 142 also
addresses financial accounting and reporting for goodwill and other intangible
assets subsequent to their acquisition. With the adoption of SFAS 142, goodwill
is no longer subject to amortization. Rather, goodwill will be subject to at
least an annual assessment for impairment by applying a fair-value based test.
The impairment loss is the amount, if any, by which the implied fair value of
goodwill is less than carrying or book value. SFAS 142 is effective for fiscal
years beginning after December 15, 2001. Impairment loss for goodwill arising
from the initial application of SFAS 142 is to be reported as resulting from a
change in accounting principle. The Company is currently assessing the new
standard and has not yet determined its impact on its consolidated results of
operations, cash flows or financial position.

     Statement of Financial Accounting Standards No. 143, "Accounting for
Obligations Associated with the Retirement of Long-Lived Assets" ("SFAS 143"),
was also issued in July 2001. SFAS 143 provides the accounting requirements for
retirement obligations associated with tangible long-lived assets. SFAS 143 is
effective for fiscal years beginning after June 15, 2002, and early adoption is
permitted. The Company is currently assessing the new standard and has not yet
determined its impact on its consolidated results of operations, cash flows or
financial position.

     Statement of Financial Accounting Standards No. 144, "Accounting for the
Impairment or Disposal of Long-Lived Assets" ("SFAS 144"), was issued in October
2001. SFAS 144 addresses financial accounting and reporting for the impairment
or disposal of long-lived assets. This statement supersedes SFAS 121,
"Accounting for the Impairment of Long-Lived Assets and for Long-Lived Assets to
Be Disposed Of", and the accounting and reporting provisions of APB Opinion No.
30, "Reporting the Results of Operation-Reporting the Effects of Disposal of a
Segment of a Business and Extraordinary, Unusual and Infrequently Occurring
Events and Transitions" for the disposal of a "Segment of a Business" (as
previously defined in that Opinion). SFAS 144 also amends ARB No. 51,
"Consolidated Financial Statements", to eliminate the exception to consolidation
for a subsidiary for which control is likely to be temporary. SFAS 144 is
effective for fiscal years beginning after December 15, 2001, and early adoption
is permitted. The Company is currently assessing this new standard and has not
yet determined its impact on its consolidated results of operations, cash flows
or financial position.

Reclassifications

     Certain amounts presented in the financial statements of prior periods have
been reclassified to conform to the current period's presentation.

2.   Inventories

     Inventories consisted of the following:

                                    June 30,    September 30,
                                      2002          2001
                                  ------------ ---------------
                                         (In thousands)

        Raw materials              $    2,403   $       2,869
        Work-in-progress                  650             892
        Finished goods                 36,442          33,664
                                  ------------ ---------------
        Total inventories          $   39,495   $      37,425
                                  ============ ===============

<PAGE>

                    CATALINA LIGHTING, INC. AND SUBSIDIARIES
              Notes to Condensed Consolidated Financial Statements
                                   (Unaudited)

3.   Loss on Disposal of Warehouse and Related Equipment

     During the three months ended March 31, 2002, the Company began actively
marketing for sale its underutilized Tupelo, Mississippi distribution center,
which had a carrying value of $8.1 million as of March 31, 2002. On May 6, 2002,
the building and substantially all of the equipment in the distribution center
were sold to a third party, resulting in a loss on sale of $1.1 million. This
loss was recognized in the quarter ended March 31, 2002 as a loss on disposal of
warehouse and related equipment. The net proceeds from the sale after the
pay-off of the mortgage bonds of approximately $3.3 million were used to pay
down the Company's term loans.

4.   Conversion of Subordinated Debt

     On June 14, 2002, the Company entered into a transaction with Sun Catalina
Holdings, LLC ("SCH"), an affiliate of Sun Capital Partners, Inc., and SunTrust
Banks, Inc. ("SunTrust") whereby it issued and sold 924,572 and 184,843 shares
of the Company's common stock, to SCH and SunTrust, respectively, for an
aggregate purchase price of $5,001,937 and $1,000,000, respectively,
representing a price of $5.41 per share. As payment for their shares, SCH and
SunTrust each surrendered a corresponding amount of subordinated debt and
accrued interest, and the Company was released from all obligations and
liabilities associated with the surrendered debt. In connection with the
transaction a special committee of independent members of the Board of Directors
obtained a fairness opinion from a major investment bank regarding the $5.41 per
share sale price. The amount of subordinated debt reflected in the condensed
consolidated balance sheet as of June 30, 2002 consists of the following:

<TABLE>
<CAPTION>

                                                                       Additions of
                                                     Original      Principal for Interest  Unamortized
                                                     Principal       Not Paid in Cash        Discount       Total
                                                  --------------- ----------------------- -------------- -----------
                                                                            (In thousands)
<S>                                               <C>             <C>                     <C>            <C>
Balance as of September 30, 2001                        $  8,800                $    199       $ (2,899)  $   6,110
     Additions to principal for interest not paid in
       cash                                                                          692                        692
     Discount amortization                                                                          435         435
     Repayment of subordinated debt                       (5,400)                   (602)         1,511      (4,491)
                                                  --------------- ----------------------- -------------- -----------
Balance as of June 30, 2002                             $  3,400                $    289       $   (943)  $   2,746
                                                  =============== ======================= ============== ===========
</TABLE>

5.   Common Stock and Stock Warrants

     Effective April 8, 2002, the Company announced a one-for-five reverse stock
split. As a result, the number of shares of the Company's common stock
authorized, and issued and outstanding, decreased from 100,000,000 to
20,000,000, and from 16,520,179 to 3,304,036, respectively. Earnings per share
in the financial statements reflect the reverse stock split for all periods
presented.

     On January 11, 2002, the Company entered into a three-year consulting
agreement with a related party, who is an executive officer of an entity under
common control with the Company, whereby it issued to the consultant a warrant
to purchase 64,400 shares of the Company's common stock with an exercise price
of $2.20 per share which was the market value on the date of grant. Half of the
warrants vest on January 24, 2003, and the remainder vest one year later.
However, if the Company terminates the consulting agreement without cause, the
warrant becomes fully exercisable on the date of such termination.

     During May 2002, the Company granted options valued at $24,000 and paid
$26,000 cash to an employee of an entity under common control with the Company.

     During the nine months ended June 30, 2002, the Company issued 91,000 stock
options to employees and directors at prices between $1.75 and $25.00 per share.

<PAGE>

                    CATALINA LIGHTING, INC. AND SUBSIDIARIES
              Notes to Condensed Consolidated Financial Statements
                                   (Unaudited)

     Interest on the subordinated notes is payable quarterly in arrears in cash
commencing March 31, 2003. Interest for quarters prior to the quarter ending
March 31, 2003 will be added to the principal amount of the note. The note
holders are also entitled to additional warrants to purchase shares of common
stock at $.05 per share for the quarters during which interest on the notes is
not paid in cash. Interest was not paid on the notes for the six months ended
March 31, 2002, for which the note holders received additional warrants to
purchase, in the aggregate, 69,065 shares of common stock. The interest due on
the remaining subordinated notes for the quarter ended June 30, 2002 was paid in
cash, and no additional warrants were issued. The Company anticipates that it
will continue to make cash payments for interest due. If the Company does not
make such payments, it will be required to issue additional warrants for up to
17,411 shares of common stock.

6.   Revolving Credit Facility

     The Company has a $75 million credit facility which funded the Company's
acquisition of Ring Limited (formerly known as Ring plc) ("Ring") and provides
funds through revolving facilities for the Company's U.S. and U.K. operations.
The credit facility agreement requires that the Company meet certain financial
covenants and minimum levels of adjusted quarterly earnings beginning with the
quarter ended September 30, 2001 and quarterly debt to adjusted earnings and
fixed charge ratios beginning with the quarter ending December 31, 2002.

     The Company was in compliance with the financial covenants of its credit
facility for the quarter ended June 30, 2002. Based upon its current assessment
of market conditions for its business and its projections for the remainder of
its 2002 fiscal year, the Company expects to be in compliance with the credit
facility's financial covenants for the September 30, 2002 and subsequent
quarters.

<PAGE>

                    CATALINA LIGHTING, INC. AND SUBSIDIARIES
              Notes to Condensed Consolidated Financial Statements
                                   (Unaudited)

7.   Segment Information

     Information on operating segments and a reconciliation to income (loss)
before income taxes for the three and nine months ended June 30, 2002 and 2001
are as follows (in thousands):

<TABLE>
<CAPTION>
                                                                 Three Months Ended June 30,
                                 -----------------------------------------------------------------------------------------
Net Sales                                             2002                                          2001
                                 -------------------------------------------   -------------------------------------------
   by Operating Segment:             External                                      External
                                     Customers    Intersegment      Total          Customers    Intersegment      Total
                                 -------------------------------------------   -------------------------------------------
<S>                                 <C>           <C>             <C>             <C>           <C>            <C>
United States                         $ 17,210       $     70      $ 17,280         $ 24,864       $    137      $ 25,001
China                                    4,068         20,478        24,546            5,756         26,317        32,073
United Kingdom                          25,941              -        25,941           24,415              -        24,415
Other segments                           6,132              -         6,132            5,513             35         5,548
Eliminations                                 -        (20,548)      (20,548)               -        (26,489)      (26,489)
                                 -------------------------------------------   -------------------------------------------
                                      $ 53,351       $      -      $ 53,351         $ 60,548       $      -      $ 60,548
                                 ===========================================   ===========================================

<CAPTION>
                                                                 Nine Months Ended June 30,
                                 -----------------------------------------------------------------------------------------
                                                      2002                                          2001
                                 -------------------------------------------   -------------------------------------------
                                     External                                      External
                                     Customers    Intersegment      Total          Customers    Intersegment      Total
                                 -------------------------------------------   -------------------------------------------
<S>                                 <C>           <C>             <C>             <C>           <C>            <C>
United States                         $ 46,025          $ 269      $ 46,294         $ 60,044       $    547      $ 60,591
China                                   13,789         52,980        66,769           19,030         66,553        85,583
United Kingdom                          83,925              -        83,925           80,453              -        80,453
Other segments                          19,724             62        19,786           21,418            309        21,727
Eliminations                                 -        (53,311)      (53,311)               -        (67,409)      (67,409)
                                 -------------------------------------------   -------------------------------------------
                                      $163,463       $      -      $163,463         $180,945       $      -      $180,945
                                 ===========================================   ===========================================
</TABLE>

<PAGE>

                    CATALINA LIGHTING, INC. AND SUBSIDIARIES
              Notes to Condensed Consolidated Financial Statements
                                   (Unaudited)

<TABLE>
<CAPTION>
Net Sales by Location                          Three Months Ended                Nine Months Ended
    of External Customers:                           June 30,                          June 30,
                                          ----------------------------     ----------------------------
                                               2002            2001            2002            2001
                                          ------------    ------------     ------------    ------------
<S>                                       <C>             <C>              <C>             <C>
United States                                $ 17,362        $ 25,031         $ 46,455        $ 60,425
United Kingdom                                 25,140          24,099           82,122          77,877
Canada                                          5,659           4,550           17,438          18,544
Other countries                                 5,190           6,868           17,448          24,099
                                          ------------    ------------     ------------    ------------
                                             $ 53,351        $ 60,548         $163,463        $180,945
                                          ============    ============     ============    ============

<CAPTION>
Segment Contribution (Loss):                   Three Months Ended                Nine Months Ended
                                                     June 30,                          June 30,
                                          ----------------------------     ----------------------------
                                               2002            2001            2002            2001
                                          ------------    ------------     ------------    ------------
<S>                                       <C>             <C>              <C>             <C>
United States                                $    103        $   (437)        $    108        $ (1,831)
China                                           1,069           1,650            3,357           4,684
United Kingdom                                    362            (773)           2,554          (3,273)
Other segments                                    261            (948)           1,266          (1,348)
                                          ------------    ------------     ------------    ------------
  Subtotal for segments                         1,795            (508)           7,285          (1,768)
Parent/administrative expenses                 (2,405)         (2,538)          (7,686)         (7,597)
                                          ------------    ------------     ------------    ------------
  Income (loss) before income taxes          $   (610)       $ (3,046)        $   (401)       $ (9,365)
                                          ============    ============     ============    ============

<CAPTION>
Interest Expense (Income) (1):                 Three Months Ended                Nine Months Ended
                                                     June 30,                          June 30,
                                          ----------------------------     ----------------------------
                                               2002           2001             2002            2001
                                          ------------    ------------     ------------    ------------
<S>                                       <C>             <C>              <C>             <C>
United States                                $   (223)       $   (168)        $   (400)       $   (381)
China                                              (5)             (7)             (19)           (120)
United Kingdom                                  1,201           1,266            3,288           3,768
Other segments                                     72              81              207             324
                                          ------------    ------------     ------------    ------------
  Subtotal for segments                         1,045           1,172            3,076           3,591
Parent interest expense                           854             557            2,675           1,544
                                          ------------    ------------     ------------    ------------
  Total interest expense                     $  1,899        $  1,729         $  5,751        $  5,135
                                          ============    ============     ============    ============
</TABLE>

         Total Assets (2):                    June 30,        September 30,
                                                2002              2001
                                          --------------    ----------------
         United States                        $  32,380           $  51,550
         China                                   43,440              45,920
         United Kingdom                          70,972              68,368
         Other segments                          10,297               8,836
         Eliminations                           (26,113)            (28,577)
                                          --------------    ----------------
           Total assets                       $ 130,976           $ 146,097
                                          ==============    ================

<PAGE>

                    CATALINA LIGHTING, INC. AND SUBSIDIARIES
              Notes to Condensed Consolidated Financial Statements
                                   (Unaudited)

          Long-Lived Assets (3):

                                               June 30,      September 30,
                                                2002             2001
                                            ------------     -------------
          United States                       $  1,783         $ 10,891
          China                                 14,153           15,329
          United Kingdom                         2,852            3,910
          Other segments                            68               97
                                            ------------     -------------
            Total long-lived assets           $ 18,856         $ 30,227
                                            ============     =============

Expenditures for Additions to Long-Lived Assets:

                                              Nine Months Ended June 30,
                                            ------------------------------
                                                2002             2001
                                            ------------     -------------
          United States                       $     22         $    102
          China                                    249            3,754
          United Kingdom                           308              335
          Other segments                            20               13
                                            ------------     -------------
            Total expenditures                $    599         $  4,204
                                            ------------     -------------

     (1)  The interest expense shown for each segment includes interest charged
          or earned on intersegment advances.

     (2)  Total assets for United States include parent/administrative assets.

     (3)  Represents property and equipment, net.

Major Customers

     During the three months ended June 30, 2002 and 2001, one customer
(included in the United Kingdom operations) accounted for 14.7% and 16.9%,
respectively, of the Company's consolidated net sales. Two additional customers
(included in the United States and other operations) accounted for 13.6% and
10.5% of the Company's consolidated net sales for the three months ended June
30, 2002, compared to 13.9% and 12.2% during the same period in 2001. No other
customers accounted for more than 10% of consolidated net sales during the three
months ended June 30, 2002 and 2001.

     During the nine months ended June 30, 2002 and 2001, one customer (included
in the United Kingdom operations) accounted for 17.4% and 17.1%, respectively,
of the Company's consolidated net sales. One additional customer (included in
the United States and other operations) accounted for 13.7% of the Company's
consolidated net sales for the nine months ended June 30, 2002, compared to
12.8% during the same period in 2001. No other customers accounted for more than
10% of consolidated net sales during the nine months ended June 30, 2002.

8. Commitments and Contingencies

Westinghouse License

     On April 26, 1996, the Company entered into a license agreement with
Westinghouse Electric Corporation to market and distribute a full range of
lighting fixtures, lamps and other lighting products under the Westinghouse

<PAGE>

                    CATALINA LIGHTING, INC. AND SUBSIDIARIES
              Notes to Condensed Consolidated Financial Statements
                                   (Unaudited)

brand name in exchange for royalty payments. The royalty payments are due
quarterly and are based on a percent of the value of the Company's net shipments
of Westinghouse branded products, subject to annual minimum net shipments.
Originally, subject to the minimum sales conditions discussed below, the
agreement would terminate on September 30, 2002, with the Company having options
to extend the agreement for two additional five-year terms. Either party had the
right to terminate the agreement if the Company did not meet the minimum net
shipments of $30 million for fiscal 2001 and $60 million for fiscal 2002.
Effective as of October 1, 2001, the Company and Westinghouse signed an
amendment to the license agreement that eliminates the minimum net shipments
requirement but also eliminates the Company's option to extend the license
agreement upon the agreement's expiration on September 30, 2002. Net sales of
Westinghouse branded products amounted to $8.6 million and $13.3 million for the
nine months ended June 30, 2002 and 2001, respectively. The Company does not
intend to sell Westinghouse labeled goods after September 30, 2002 and does not
believe that the loss of the Westinghouse license will have a material effect on
the Company's financial condition or results of operations.

Litigation

     During the past few years, the Company has received a number of claims
relating to halogen torchieres sold by the Company to various retailers. The
Company maintains primary product liability insurance coverage of $1 million per
occurrence and $5 million in the aggregate, as well as umbrella insurance
policies providing an aggregate of $75 million in excess umbrella insurance
coverage. The primary insurance policy requires the Company to self-insure for
up to $10,000 per incident. Based on experience, the Company has accrued
$302,000 for this contingency as of June 30, 2002. No assurance can be given
that the number of claims will not exceed historical experience, that claims
will not exceed available insurance coverage or that the Company will be able to
maintain the same level of insurance.

     On September 15, 1999, the Company filed a complaint entitled Catalina
Lighting, Inc. v. Lamps Plus, Civil Action 99-7200, in the U.S. District Court
for the Southern District of Florida. In the complaint, the Company requested
declaratory relief regarding claims of trade dress and patent infringement made
by Lamps Plus against a major customer of the Company. Lamps Plus filed an
Answer and Counterclaim against the Company and its customer on October 6, 1999,
alleging patent infringement and trade dress. The trade dress claim was
dismissed with prejudice before trial in March 2001. In April 2001, a jury
returned a verdict finding liability against the Company on the patent
infringement claim, and in June 2001 the Court entered a judgment of
approximately $1.6 million for damages and interest thereon. The Company
appealed the judgment entered by the Court and posted a surety bond in the
amount of $1.8 million for the appeal (for which the Company posted $1.5 million
in cash collateral). In a decision published on June 28, 2002, the Court of
Appeals affirmed the finding of liability against the Company but reduced the
lower court's award of damages. The final judgment including related costs is
reflected in the financial statements as a $959,000 litigation settlement.
Subsequent to June 28, 2002, the Company received the cash collateral for the
surety bond net of the judgment amount.

Kmart Bankruptcy

     On January 22, 2002, Kmart Corporation filed a Chapter 11 bankruptcy
petition with the U.S. Bankruptcy Court for the Northern District of Illinois.
The Company's sales to Kmart amounted to $10.7 million for the year ended
September 30, 2001 and $3.2 million and $8.4 million for the nine months ended
June 30, 2002 and 2001, respectively. The Company has no outstanding receivables
from Kmart for the period prior to January 22, 2002, and has resumed shipments
subsequent to the bankruptcy filing. The Company is continuing to assess the
effect of the bankruptcy proceedings on future sales to Kmart.

Pension Plan

     Ring has a defined benefit pension plan which covers 22 current employees
and approximately 750 members formerly associated with Ring. The plan is
administered externally, and the assets are held separately by professional
investment managers. The plan is funded by contributions at rates recommended by
an actuary. The

<PAGE>

                    CATALINA LIGHTING, INC. AND SUBSIDIARIES
              Notes to Condensed Consolidated Financial Statements
                                   (Unaudited)

Company reviews the plan on a periodic basis, and in the future it may determine
to continue the plan or terminate the plan. If the Company were to terminate the
plan, it is anticipated that this would require accelerated payments based on
the "Minimum Funding Requirement" ("MFR") shortfall. The most recent estimate as
of March 2002 placed the MFR shortfall at approximately $3.2 million. The U.K.
government announced that it intends to abolish the MFR and to replace it with
funding standards individually tailored to the circumstances of plans and
employers. Based on current information, it appears that this change is not
likely to occur before April 2003. Should the Company not terminate its U.K.
pension plan prior to that date, the cost to terminate the plan under the new
rules could be significantly greater than the current $3.2 million deficit under
the MFR method. The accrued liability for the U.K. pension at June 30, 2002 was
$4.4 million.

IRS Audit

     The Internal Revenue Service has started its field work in its examination
of the Company's 1999 tax return. To date, no adjustments have been proposed.
Management believes that adequate provision for taxes has been made for the
years under examination and those not yet examined.

                                    * * * * *

<PAGE>

                                   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.

                                             CATALINA LIGHTING, INC.



                                             /s/ Eric Bescoby
                                             ----------------------------------
                                             Eric Bescoby
                                             Chief Executive Officer

                                             /s/ Lynn Skillen
                                             ----------------------------------
                                             Lynn Skillen
                                             Chief Financial Officer
                                             (Chief Accounting Officer)

Date: August 15, 2002