Parlux results down after late filing

By Simon Pitman

- Last updated on GMT

Related tags: Quarter results, Board of directors, Corporate governance

Parlux has rushed to file its latest quarterly results after facing
delisting. Its second quarter results, which were four months
behind schedule, show that the company's profits are continuing to
decline in the face of stagnant sales and distribution problems.

The quarter, which includes the three months ending September 30, showed that net earnings fell by 18 per cent to $4.44m, compared to the same quarter in 2005, while net revenue fell 1 per cent to reach $39.3m. The results included a $1.77m gain from the divstement of its E Com Ventures business, following a significant restructuring of the business, which has also undergone a significant boardroom shuffle. Parlux interim CEO, Neil Katz, said that the company's third quarter results would be filed shortly, adding his hopes that the lateness of results would soon become a thing of the past. "I am pleased, after over four months of delays, we are moving forward with our reporting responsibilities," said Katz. The rush to get the results filed came in the face of threats from Nasdaq that further tardiness could result in the business being delisted. The company, which manufactures and markets designer fragrance brands that include Guess, OXOXO and Ocean Pacific, said that in an effort to bring its accounts back up to date, it would be mobilizing all possible resources in to get it third quarter results. Although the company has asked for the deadline on the third quarter results to be extended until April 16, it also said that no assurance could be given that Nasdaq would recognize its demand for the extension or continue to list its stock. Bearing this in mind, Parlux expects to provide an update on the current status of its Nasdaq listing during the course of this week, adding that if it was delisted it expected that the company shares would trade as pink sheets. The fact that the company is racing to get its accounting processes in order does indicate that the company is finally turning a corner after a difficult 12 months. A battle for executive power came to an end at the beginning of February, after the company announced that it had sacked CEO Illia Lekach, replacing him with Katz. In addition to Katz, two other executive appointments were made - Anthony D'Agostino and Robert Mitzman. This brings the total number of board members to six, all of whom will have equal representation. The new board of directors was nominated by Glenn Nussdorf, who owns a 12 per cent share of Parlux Fragrances, and also has interests in several associated businesses.

Related topics: Business & Financial, Fragrance

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