A delay: Ashworth Inc

San Diego Business Journal, Feb 6, 2006 by Mike Allen

A Delay: Ashworth Inc., a Carlsbad-based maker of sportswear, said it asked for an extension on filing its annual report with the SEC last month for its fiscal year ended Oct. 31.

Ashworth has been in negotiations with its lender, Union Bank of California, on a line of credit--a process that has delayed the completion of its annual audit.

Ashworth turned in losing numbers last year, but it did improve overall revenues from $173 million to $205 million.

The net loss for the year was $729,000, compared with a net profit of $8.2 million for the 2004 fiscal year.

The company said its gross margins and profits were hurt by lower sales of higher margin products, and the reduction of inventory in the fourth quarter that was built up in the third quarter.

For its 2006 year, Ashworth predicted revenues would come in from $210 million to $220 million, while earnings should finish between 48 to 56 cents per share.

As of Jan. 30, the company, which uses the ticker symbol ASHW, closed at $8.47, and ranged from $5.95 to $12.38 in the past 52 weeks.