8-K

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 8-K

CURRENT REPORT

Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

Date of Report (Date of earliest event reported): May 18, 2007

CTI INDUSTRIES CORPORATION

(Exact name of registrant as specified in its charter)

Illinois	0-23115	36-2848943
(State or other jurisdiction	(Commission	(IRS Employer
of incorporation)	File Number)	Identification No.)

22160 North Pepper Road, Barrington, IL	60010
(Address of principal executive offices)	(Zip Code)
Registrant’s telephone number, including area code:	(847) 382-1000

N/A

(Former name or former address, if changed since last report.)

Check the appropriate box below if the Form 8-K is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

o Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

o Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17CFR 240.14a-12)

o Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

o Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Item No. 2.02 - Results of Operations and Financial Condition

On May 18, 2007, CTI Industries Corporation issued a press release reporting earnings and other financial results for its first quarter ended March 31, 2007. A copy of the Press Release is attached as Exhibit 99.

The information disclosed under this Item 2.02 (including Exhibit 99) shall not be deemed “filed” for the purposes of Section 18, nor shall it be deemed incorporated by reference in any filing under the Securities Act of 1933, as amended, or the Securities Exchange Act of 1934, as amended, or otherwise subject to the liabilities of that section.

Item No. 9.01 - Financial Statements and Exhibits

(c) Exhibits:

Exhibit No. Exhibit 

99 Press Release dated May 18, 2007, captioned: “CTI Industries Corporation Reports First Quarter 2007 Financial Results.”

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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 hereunto duly authorized.

	CTI Industries Corporation
	(Registrant)
Date: May 22, 2007	By:	/s/ Howard W. Schwan
		Howard W. Schwan, President

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EX-99.1

Exhibit 99

NEWS RELEASE

FOR FURTHER INFORMATION CONTACT:

Stephen M. Merrick	Catherine E. Lawler
Executive Vice President	Investor Relations
(847) 382-1000	(847) 671-1177

CTI Industries Corporation Reports

First Quarter 2007 Financial Results

FOR IMMEDIATE RELEASE

Friday, May 18, 2007

BARRINGTON, IL, May 18, 2007 -- CTI Industries Corporation (NASDAQ Capital Market - CTIB), a manufacturer and marketer of novelty balloons, printed and laminated films and flexible packaging and storage products, today announced its results of operations for the first quarter of 2007.

Consolidated net sales for the first quarter of 2007 were $8,279,000, compared to consolidated net sales of $8,156,000 for the first quarter of 2006, an increase of 1.5%. The Company incurred a net loss of $52,000 or $0.02 per share (basic and diluted) for the first quarter of 2007 compared to net income of $220,000 or $0.11 per share (basic) and $0.10 per share (diluted) for the first quarter of 2006.

Key Factors and Trends

Revenues for the first quarter of 2007 were up slightly compared to the first quarter of 2006. Revenues by product line were essentially equivalent to those in the first quarter of 2006. Gross margins were down slightly from 24% in 2006 to 23% in the first quarter of 2007.

General, selling and administrative expenses were $297,000 greater in the first quarter of 2007 than the first quarter of 2006. These increased expenses included (i) expenses incurred in the development and introduction of the Company’s new line of resealable vacuum pouches, (ii) licensing costs, (iii) retail store servicing costs and (iv) personnel expenses.

Statements made in this release that are not historical facts are “forward-looking” statement (as defined in the Private Securities Litigation Reform Act of 1995) that involve risks and uncertainties and are subject to change at any time. These “forward-looking” statements may include, but are not limited to, statements containing words such as “may,” “should,” “could,” “would,” “expect,” “plan,” “goal,” “anticipate,” “believe,” “estimate,” “predict,” “potential,” “continue,” or similar expressions. Factors that could cause results to differ are identified in the public filings of the Company with the Securities and Exchange Commission. More information on factors that could affect CTI’s business and financial results are included in its public filings made with the Securities and Exchange Commission, including its Annual Report on Form 10-K and Quarterly Reports on Form 10-Q.

– FINANCIAL HIGHLIGHTS FOLLOW -

CTI Industries Corporation and Subsidiaries
Condensed Consolidated Balance Sheet
	March 31, 2007			December 31, 2006
Assets	(Unaudited)
Current Assets:
Cash and cash equivalents	$	466,391		$	384,565
Accounts receivable, net		5,998,119			6,442,765
Inventories, net		8,233,462			7,974,113
Other current assets		1,842,043			1,689,802
Total current assets		16,540,015			16,491,245
Property, plant and equipment, net		8,549,437			8,592,274
Other assets		1,589,450			1,561,420
Total Assets	$	26,678,902		$	26,644,939
Liabilities & Stockholders' Equity
Total current liabilities	$	14,716,894		$	14,643,374
Long term debt, less current maturities		5,417,640			5,592,696
Other liabilities		1,228,460			1,294,272
Minority interest		12,638			12,672
Stockholders' equity		5,303,270			5,101,925
Total Liabilities & Stockholders' Equity	$	26,678,902		$	26,644,939
Consolidated Statements of Operations
		Three Months Ended March 31
		2007			2006
		(Unaudited)			(Unaudited)
Net sales	$	8,278,874		$	8,156,223
Cost of sales		6,376,187			6,202,908
Gross profit		1,902,687			1,953,315
Operating expenses		1,708,928			1,412,361
Income from operations		193,759			540,954
Other income (expense):
Net Interest expense		(334,584	)		(330,623	)
Other		52,172			47,545
(Loss) income before income taxes and minority interest		(88,653	)		257,876
Income tax (benefit) expense		(36,407	)		38,188
(Loss) income before minority interest		(52,246	)		219,688
Minority interest in loss of subsidiary		(34	)		(80	)
Net (loss) income	$	(52,212	)	$	219,768
Basic (loss) income per common and common equivalent shares	$	(0.02	)	$	0.11
Diluted (loss) income per common and common equivalent shares	$	(0.02	)	$	0.10
Weighted average number of shares and equivalent shares
of common stock outstanding:
Basic		2,156,783			2,036,474
Diluted		2,156,783			2,166,892