Parlux gets Nasdaq extension for quarterly results
of its shares on the Nasdaq, which in turn grants it more time to
file its quarterly results ending December 30.
The troubled company was supposed to file its quarterly results ending December 31, 2006, by 31 March, 2007, but has still not managed to do so. Given a serious administration backlog that the company claims was due to its huge growth during the 2005 financial year, it requested an extension to the deadline until April 16 to file its form 10-Q - a request that was granted on April 9. The company says that, having raced to catch up with the administration backlog, it now fully expects to make the new deadline, a feat that will enable it to maintain its Nasdaq listing. The financial world has viewed the progress the company has made in recent months as largely positive, something that has contributed to a significant increase in the company's share price. Currently share prices are trading at $5.47, representing an increase of nearly 8 per cent on the previous day. Last week Parlux rushed to file its quarterly results ending September 30, 2006, after facing delisting. Its second quarter results, which were four months behind schedule, showed that the company's profits were continuing to decline in the face of stagnant sales and distribution problems. The quarterly results 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. The rush to get the results filed came in the face of threats from Nasdaq that further tardiness could result in delisting. The company, which manufactures and markets designer fragrance brands that include Guess, OXOXO and Ocean Pacific, said at the time 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. The fact that the company is racing to get its accounting processes in order does indicate that it could finally be 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 Neil Katz as interim CEO. 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.