PARL

[la-onda]

Rams, Aussie, I need your help! 
Could you please check PARL (research tool, TA)?
tia
Oliver

Parlux Fragrances, Inc. Announces Fiscal 2008 Earnings
Thursday , June 05, 2008 17:00ET
http://media.marketwire.com/attachments/200710/369827_logo.jpg

FORT LAUDERDALE, FL -- (MARKET WIRE) -- 06/05/08 -- Parlux Fragrances, Inc. (NASDAQ: PARL) announced its results for the fiscal year ended March 31, 2008. Sales from continuing operations were $153,696,374 compared to $134,365,094 in the prior year, an increase of 14%.

Income from continuing operations was $5,010,751 compared to a loss of ($27,864,295) in the prior year. Net income including discontinued operations was $5,036,101, or $0.24 per diluted share compared to $2,882,232 or $0.16 per diluted share in the prior year.

Mr. Neil Katz, Chairman and CEO, noted that, "The Company achieved a $51 million improvement in income from continuing operations before income taxes, on a year to year basis, which underscores our success in restructuring our operations and refocusing our business. We have reduced our operating costs by 33% by centralizing warehousing/distribution in New Jersey, and moving all corporate management and administrative activities into new office facilities in South Florida. We have reduced inventories by 35%, reduced G&A by 39% (excluding non-cash share-based compensation charges of $244,662 in 2008 and $18,946,950 in 2007), and reduced advertising by 22%, while concurrently increasing sales by 14%."

"Most significantly," Mr. Katz continued, "the Company had over $21 million in cash on hand at year end, and our $35 million bank line was not utilized. These funds will be available to support the launch of new licenses which we have signed, specifically Jessica Simpson, Nicole Miller, Natori and Queen Latifah, and to fully support our ongoing base business of Paris Hilton and GUESS?. Additionally, we will be launching a new Paris Hilton fragrance this Fall, as well as a new GUESS? men's fragrance in the Spring of 2009."

"We are optimistic about the growth and profit potential of the Company in Fiscal 2009 and the future," Mr. Katz concluded.

The financial results for fiscal 2008 are attached. The Company will file its Annual Report on Form 10-K for the fiscal year ended March 31, 2008 as soon as possible.

&

PARL: Q4 EPS 14c vs 25c Beats 7c Est
Friday , June 06, 2008 07:12ET

QUARTER RESULTS
Parlux Fragrances, Inc. (PARL) reported Q4 results ended March 2008. Q4 Revenues were $40.42M; +13.60% vs yr-ago; MISSING revenue consensus by -1.66%. Q4 EPS was 14c; -44.00% vs yr-ago; BEATING earnings consensus by +100.00%.

Q4 RESULTS      Reported      Year-Ago     Y/Y Chg      Estimate    SURPRISE
----------  ------------  ------------  ----------  ------------  ----------
Revenues:        $40.42M       $35.58M     +13.60%       $41.10M      -1.66%
----------  ------------  ------------  ----------  ------------  ----------
EPS:                 14c           25c     -44.00%            7c    +100.00%
----------  ------------  ------------  ----------  ------------  ----------


YEAR-END RESULTS
Co. also reported Year-End results ended March 2008. FY Revenues were $153.70M; +14.39% vs yr-ago; MISSING revenue consensus by -0.46%. FY EPS was 24c; +50.00% vs yr-ago; BEATING earnings consensus by +41.18%.

FY RESULTS      Reported      Year-Ago     Y/Y Chg      Estimate    SURPRISE
----------  ------------  ------------  ----------  ------------  ----------
Revenues:       $153.70M      $134.37M     +14.39%      $154.40M      -0.46%
----------  ------------  ------------  ----------  ------------  ----------
EPS:                 24c           16c     +50.00%           17c     +41.18%
----------  ------------  ------------  ----------  ------------  ----------

Analysis quotation (from a friend):
At $4.80 it is still $0.80 below book value but now trades for 20 times trailing earnings but only 12.6 times forward earnings which as you know I believe that PARL will beat.  I think PARL will deliver $0.50 eps vs. the $0.38 estimate for fiscal 2009.  For fiscal 2010, I think that they will push $0.80 to $1 eps. On the conference call, Neil Katz CEO stated that they were in contract negotiations with a major designer/retail name.  In particular he indicated that they were exchanging drafts of the contract.  He also indicated that they may have up to 6 sets (am going to go back and listen again later) of licensing talks in process.  Obviously a major name with retail stores should provide a further boost upon release.   


PARL: Short Interest UP 0.7% to 684.1K in Mid May 2008
Tuesday , May 27, 2008 16:20ET

According to new short interest data from NASDAQ, short interest for Parlux Fragrances, Inc. (NasdaqNM: PARL) INCREASED 0.7% to 684,087 shares as reported in mid-May, 2008.
Based on PARL's 20-day average daily share volume of 36,720, it would require approximately 19 day(s) of buying to cover this short interest.


Chart:

[la-onda]

the chart looks wonderful 

any other opinion from 3SoF Community?

[la-onda]

PARL: Volume Spike; 22% > 20-adsv, Stock +1.41%
Monday , June 16, 2008 12:00ET

This is the 2nd VOLUME alert for PARL in the past 7 calendar days.

Trading for Parlux Fragrances, Inc. (NASDAQ NM: PARL) has been heavier than usual in today's session. By 12:00 ET, the stock had already traded 146,637 shares via 512 trades. The cumulative volume is 22.09% above its 20-day average of 120,109. Normally the stock experiences around 419 individual trades per session.

So far, today's volume surge has caused a net rise in PARL's stock price. At the time of this alert, the stock was trading at $5.040, up $0.070 (+1.41%).

One year ago, the Company's shares closed at $4.550. The price has gained more than 10 percent since then.

Over the last 10 trading session PARL has traded in a range between $3.270 and $5.190 and is currently trading 7.35% below its 52-week high of $5.440 set on June 27,2007 and 91.63% above its 52-week low of $2.630 from August 07,2007.

In the previous 3 sessions, PARL trading has displayed a mixed trend. Closing results have been as follows:

June 13, 2008 --- closed at $4.970 up $0.280 (+5.97%) on 164,400 shares
June 12, 2008 --- closed at $4.690 down $0.010 (-0.21%) on 83,010 shares
June 11, 2008 --- closed at $4.700 up $0.030 (+0.64%) on 133,000 shares

[la-onda]

CEO Neil Katz has returned Parlux to profitability
Sunday , July 20, 2008 08:27ET

Jul 20, 2008 (South Florida Sun-Sentinel - McClatchy-Tribune Information Services via COMTEX) -- Next month's launch of Jessica Simpson's Fancy perfumemarks a redemption for the South Florida company behind the scent.

Parlux Fragrances will return to Dillard's shelves after an exile of several years.

Other stores, including Macy's, Belk and Boscov's, will also get the scent. But Dillard's signifies success for CEO Neil Katz, who's been working for more than a year to regain the confidence of investors, retailers and the perfume lines Parlux represents.

"They are looking at us and saying this is a different Parlux -- this is a Parlux that supports its businesses," Katz said in a conference call last month. "We can have Dillard's reconsider doing business with Parlux after dismissing us several years ago and vowing to never take us back."

Named Parlux chief in May 2007, Katz took over a troubled company. He assumed the lead after the former chief was forced out and after the stock had fallen by nearly two-thirds in a year.

After taking over, Katz improved earnings, moved Parlux to classier headquarters in Fort Lauderdale and signed celebrities like singer Simpson and rapper-actress Queen Latifah.

Katz "brought a significant financial and operational discipline," said analyst Rommel T. Dionisio of Wedbush Morgan Securities in Los Angeles. "He cut costs, eliminated facilities. He returned the company to profitability."

A lifelong New Yorker who now lives in Aventura, Katz came with beauty industry credentials. He was president of Liz Claiborne Cosmetics, where he created the Curve fragrance line, and later of Revlon's Beauty Care division, building a hair care business that included Flex.

Katz's biggest impact at Parlux will be his ability to bring in new business, Dionisio said. Most significant could be Simpson. There's already a strong "preseason buzz, hype" around the scent, he said.

Katz expects Fancy will start appearing in stores in the second week of August. The floral scent sells at $59 for a 3.4-ounce bottle, or $49 for half the size.Simpson, who will be touring to support a new album, plans to make a number of personal appearances for Fancy, Katz said.

Parlux is planning to spend millions to launch the product. Simpson will represent Fancy in a Macy's TV commercial airing from October to Christmas, he said. "Being on television constantly under the great name of Macy's is something," Katz said. The fragrance will be in print ads and scent strips as well.

Simpson, who named Fancy, is part of Parlux's plan to broaden its product lines. Fragrances linked to celebrity heiress Paris Hilton and designer Guess? together represented 91 percent of gross sales in fiscal 2008.

Hilton, whose first scent with Parlux came out in 2004, remains very involved, Katz said. Hilton reviews everything related to her fragrances, comes up with ideas and spends time working to make it happen: "She's a trouper," he said.

"Everyone wants to have an image of her as this playgirl. I look at her as a business partner."

To propel growth, Katz plans to enlist other celebrities who will draw different followings, whose customer bases don't overlap. "The choices are not just made on who's the most famous," Katz said.

Queen Latifah, for instance, brings different audiences than Hilton or Simpson, who Parlux calls America's sweetheart. Latifah appeals to more than her African-American fans because of the broad scope of her work, which includes hip-hop, film, the Jenny Craig weight loss program and CoverGirl cosmetics. "Latifah has a passionate following that crosses race, age and gender boundaries," Parlux said in announcing her signing.

And Parlux sought yet another set of customers with designer Josie Natori, a high-end lingerie brand, "to establish business in the Neimans and Sakses of the world," Katz said.

Even before Katz, Parlux planned to diversify and added lines such as Maria Sharapova, said Glenn Gopman, who has been on Parlux's board of directors since 1995.

But Katz is reaching to a higher shelf of celebrities, said Gopman of Levi & Gopman P.A. certified public accountants in Aventura.

Last month, Parlux reported 2008 profit of $5 million from continuing operations, compared with a loss of $28 million the previous year. Sales rose to $153.7 million from $134.4 million a year earlier. And Katz says the infrastructure exists to potentially reach $300 million in sales.

The stock, though it reached a closing high for the past year of $5.55 Friday, isn't anywhere near its peak of $18.96 in February 2006.

But Gopman, who owns 61,000 shares, thinks Katz has built a strong foundation.

Katz has brought a more corporate structure to Parlux and a different style. He is a consensus builder, a listener -- and that has built stronger relationships with licensors, Gopman said. "We do a much better job of that than we ever did before.

"I'm very pleased with what he's done restructuring the company," he said.

Margie Plunkett can be reached at [email protected] or 954-356-4663.

Singer- rapper- actress Queen Latifah is poised to launch a fragrance with the company in the fall of 2009.

Simpson's first perfume, Fancy, is described by Parlux as feminine, versatile and memorable.

Hilton's brands have garnered $90 million in revenue for Parlux and continue to be a mainstay for the company. Her next scent, Can Can, will debut in October.

The pro tennis player from Boca Raton signed a license agreement to market a cologne franchise with the company in 2004. The cologne is described as clean and airy fresh with a subtle warmth and sexiness.

Age: 64

Previous posts: president, Liz Claiborne Cosmetics; president, Revlon's Beauty Care Division; president, Strategem Creative Marketing Corp.; president and CEO, Gemini Cosmetics Inc.

Parlux Fragrances Launch Schedule

Diversifying away from its reliance on Paris Hilton fragrances is an important part of the strategy at Parlux.

Celebrity or designer Fragrance Date

Jessica Simpson Fancy August 2008

Paris Hilton Fairy Dust October 2008

Nicole Miller Frenzy January 2009

Guess by Marciano, men men's scent January 2009

Josie Natori Natori Fall 2009

Queen Latifah women's scent Fall 2009

Source: Parlux

[la-onda]

Parlux Fragrances Q1 sales down
Monday , August 11, 2008 07:09ET

Aug 11, 2008 (Datamonitor via COMTEX) -- Parlux Fragrances, which manufactures fragrances and beauty-related products, has reported net sales of $23.30 million for the first quarter ended June 30, 2008, compared to $31.38 million for the same period in fiscal 2008.

Net loss stood at $4.88 million, compared to $97,628 in the corresponding period of fiscal 2008. Diluted loss per common share was $0.24 for the first quarter of fiscal 2009.

Neil Katz, chairman and CEO of Parlux Fragrances, said: "In spite of our first quarter production difficulties, it is our expectation that sales for the current quarter and sales and profit for the full fiscal year will significantly exceed those of the prior year comparable periods."

chart:

[la-onda]

close to a new 52 weeks high, of course I didn't bought..

[la-onda]

insider buying:
http://xml.10kwizard.com/filing_raw.php?repo=tenk&ipage=5889146

chart:

[la-onda]

Parlux Announces Preliminary Increase in Second Quarter Net Sales of 43 Percent
Monday , October 06, 2008 11:16ET

FORT LAUDERDALE, FL -- (Marketwire) -- 10/06/08 -- Parlux Fragrances, Inc. (NASDAQ: PARL) announced today that net sales for the quarter ended September 30, 2008 are estimated to be $53 million, a 43% increase over the $37 million reported for same period of the prior year, while net sales results for the six months ended September 30, 2008 were estimated at $76 million, compared to $69 million for the comparable prior year period, an increase of approximately 10% over the prior year. Domestic department store net sales for the quarter ended September 30, 2008 exceeded net sales for the same period of the prior year by approximately 190%, while sales to international customers increased approximately 51% during the quarter ended September 30, 2008, as compared to the same period of the prior year. For the six months ended September 30, 2008, domestic department store and international distributor sales increased by approximately 82% each, when compared to prior year comparable period figures. Domestic department store sales in the current year periods includes approximately $6.5 million in sales of the new Jessica Simpson fragrance, Fancy, which launched during August 2008, and approximately $1.5 million in sales of the new Paris Hilton fragrance, Fairy Dust, which began shipping in late September 2008. Sales to its related party, Perfumania, for the six months ended September 30, 2008 were down by approximately 33% from the comparable prior year period, decreasing from $30 million to $20 million.

Mr. Neil J. Katz, Chairman and CEO, noted that, "We are very pleased that the inventory problems encountered during our first quarter have been almost completely resolved and we were able to meet customer demand and exceed targeted sales levels for the most recent quarter. Demand for our products continues to be strong in a very difficult economic environment. Sell-through in our domestic department store business has been steadily growing, increasing in some stores by over 100%. Our international business has also increased substantially. As part of our GUESS? brand building strategy, we recently partnered exclusively with Sephora stores in Europe, and the GUESS? brand has, at times, ranked second in sales at their stores. Shipments and sell-through of the new Jessica Simpson line, Fancy, have been robust in the U.S. department stores and we are currently launching the new Paris Hilton Fairy Dust fragrance for the upcoming holiday season. We continue to see consumer demand for our brands increase, even in light of the very difficult economic environment. Despite the difficulty in predicting the outcome of the upcoming holiday season, we remain cautiously optimistic. I should note that this very positive outcome is the result of a major financial investment in carefully targeted advertising, promotional and in-store campaigns. We have also significantly added to and strengthened our department store sales force. I believe that continuing this significant investment of our resources will provide very tangible positive results in the future, as we continue to focus our attention on the long-term growth of our company."

[la-onda]

fyi:
Parlux Fragrances, Inc. (PARL): Zacks Rank Buy
Wednesday October 15, 1:00 am ET
By Tracey Ryniec

Parlux Fragrances, Inc. (NasdaqGS: PARL - News) saw sales surged 43% in the second quarter as the Jessica Simpson and Paris Hilton fragrances took off. Branded fragrances apparently are still a hot commodity going into the holiday season. The company has a forward P/E of 10.15.

Company Description

Parlux Fragrances is a Florida-based manufacturer of designer fragrances under the brands of Paris Hilton, Jessica Simpson, GUESS?, Nicole Miller, Natori, Queen Latifah, XOXO, Ocean Pacific (OP), Andy Roddick, and Fred Hayman Bevery Hills. The company also has licenses for Paris Hilton watches, cosmetics, sunglasses, handbags and small leather accessories.

Parlux, a Zacks #1 Rank (strong buy), distributes its products in the U.S. through department and specialty stores and internationally to more than 90 countries through department stores and perfumeries.

Preliminary Second Quarter Sales Jump 43%

On Oct 6, the company announced preliminary second quarter sales that rose 43% to $53 million from $37 million in the second quarter of 2007.

Sales at domestic department stores increased 190% from a year ago. International sales were also hot, rising 51% year-over-year. The company has been building its GUESS? brand overseas and recently partnered with Sephora stores in Europe. The brand has ranked as high as second in sales in their stores.

The big seller in the period was the new Jessica Simpson fragrance, Fancy, which saw $6.5 million in sales since its launch in August 2008. The new Paris Hilton frangrance, Fairy Dust, began shipping in late September 2008 and saw sales of $1.5 million in that period.

The company is optimistic despite the economic challenges and stated that it has solved the inventory problems that occurred in the first quarter.

'Demand for our products continues to be strong in a very difficult economic environment. Sell-through in our domestic department store business has been steadily growing, increasing in some stores by over 100%,' said Neil J. Katz, Chairman and CEO.

'Shipments and sell-through of the new Jessica Simpson line, Fancy, have been robust in the U.S. department stores and we are currently launching the new Paris Hilton Fairy Dust fragrance for the upcoming holiday season,' he said.

The company reports second quarter earnings on Nov 6.

Consensus Estimates Rising for the Second Quarter and Full Year

The 1 covering analyst has been raising estimates on the second quarter and the full year in the last month. Second quarter estimates rose 2 cents to 18 cents. The full year estimate is also up 2 cents to 32 cents in the same period.

The analyst expects 2008 year-over-year earnings growth of 33.33%.

Value Fundamentals

Parlux Fragrances' stock has been hit along with most other stocks in the market sell-off. It now has strong value fundamentals and is trading at 10.1x forward earnings. Its price-to-book is 0.74. It has a five-year average return on equity (ROE) of 10.21%.

[la-onda]

very bullish chart with tight bollinger bands ! watch out for BO! 

[la-onda]

very bullish news:

BRIEF: Jay-Z, Rihanna among stars signing local fragrance deal
Wednesday, April 08, 2009 14:40ET

Apr 08, 2009 (The Miami Herald - McClatchy-Tribune Information Services via COMTEX) -- Parlux Fragrances is going hip hop.

The Fort Lauderdale fragrance company announced a licensing and partnership deal with a company owned by hip-hop mogul Shawn Carter, aka Jay-Z. The deal with Carter's Iconic Fragrances includes the rights to distribute Rihanna and Kanye West fragrances. Deals are also finalized for a Jay-Z fragrance and another featuring an unidentified female artist.

Under the terms of the licensing arrangement, Iconic will receive royalties, profit sharing and warrants to purchase common shares of Parlux at a strike price of $5 per share.

Ultimately, Iconic and the celebrities could become major shareholders of Parlux, owning as much as 12 million shares. The deal requires Parlux shareholders to increase the company's authorized common stock from 30 million shares to 40 million.

The news was received favorably by Wall Street investors, who sent Parlux's stock up more than 75 percent in morning trading. The stock opened at $1.24 per share and was trading as high as $1.82.

[la-onda]

Parlux Fragrances (PARL) Signs Major New Licensing Agreement
52-Week Range $0.59–$7.15
Shares Outstand. 20.5 million
Insider/Institutional 27% / 34%
Public Float 17.7 million
Market Cap. $32 million
ST / LT Debt $1 / 0 million
Debt/Capital 0.0%
ROE 4.5%
Dividend Yield 0.0%
Cash & Inv/Share $0.48
Book Value/Share $5.31
Parlux Fragrances, based in Ft.
FYE MAR 2008A 2009E 2010E
REV. ($m) ACTUAL CURR. PREV. CONS. CURR. PREV. CONS.
Q1 Jun $31.4A $23.3A $34.4E $32.3E $32.3
Q2 Sep 37.4A 52.4A 46.4E 43.9E 43.9
Q3 Dec 44.5A 47.3A 51.4E 50.1E 50.1
Q4 Mar 40.4A 33.1E 37.1E 37.1 31.4E 37.2E 37.2
Year** $153.7A $156.1E $160.1E $160.1 $163.6E $163.6E $163.6
Change 14.4% 1.6% 2.2%
2008A 2009E 2010E
EPS ACTUAL CURR. PREV. CONS. CURR. PREV. CONS.
Q1 Jun $(0.00)A $(0.24)A $(0.07)E $(0.08)E $(0.08)
Q2 Sep 0.10A 0.17A 0.11E 0.09E 0.09
Q3 Dec 0.01A (0.22)A 0.03E 0.02E 0.02
Q4 Mar 0.14A 0.04E 0.06E 0.06 0.06E 0.11E 0.11
Year** $0.24A $(0.24)E $(0.22)E $(0.22) $0.14E $0.14E $0.14
P/E 6.5x NA 11.2x
Change NA NA NA
Price (as of close 4/8/09)
$1.57
Rating: BUY
12- Month Price Target $3


• New FY10 guidance calls for return to profitability. Management anticipates FY10
sales to increase approximately 10% and for the company to return to profitability. The
initial fragrance launches under the recently signed Mark Ecko and Queen Latifah
agreements, a new flanker for the Jessica Simpson line, and the return to more
normalized retail inventory shipments following de-stocking this past holiday season
should drive the sales growth, partially offset by the end of the Guess agreement on
December 31. Furthermore, following the addition of Dillard's to its customer base last
year as a result of the Jessica Simpson license and, due to the successful launch of
Fancy, Dillard's plans to carry the Mark Ecko and Queen Latifah fragrances,
demonstrating management's ability to penetrate additional retailers.
• Revising Q4 estimates to reflect returns from difficult retail environment and store
closings. We now estimate Q4 revenue of $33 million from $37 million and EPS of $0.04
from $0.06, due to the negative impact of returns related to store closings at retailers such
as Macy's. For FY10, we are maintaining our estimates for revenue of $164 million and
EPS of $0.14. Management plans to release Q4 results on or before May 22 and hold a
conference call at that time.

• Inks licensing agreements for Rihanna and Kanye West fragrances. Parlux signed a
new licensing agreement with Iconix Fragrances, including individual licenses with multiple
Grammy award winning entertainers Rihanna and Kanye West. The licenses add to the
company's growing stable of brands, including recent license agreements for Queen
Latifah, Nicole Miller, Mark Ecko, and Jessica Simpson. Parlux is also in the final stage of
negotiations for a worldwide licensing agreement with entertainment mogul Jay-Z, also a
principal for Iconic Fragrances, as well as in discussions with an unnamed female artist.
In addition to royalties, the agreements include profit sharing and the issuance of
3,000,000 warrants per sublicense (12,000,000 warrants total) for common stock with a
strike price of $5. Management believes sales of the four new licensees could potentially
reach $150 million within a couple years of launch, or roughly the end of FY12.

• Maintain BUY rating and price target of $3. Given Parlux maintains a clean balance
sheet with net cash of $0.44 per share; potential for market share growth driven by newly
signed licenses such as Jessica Simpson, Mark Ecko, Queen Latifah, Rihanna, Kanye
West, and Jay-Z; as well as the potential return to profitability in FY10, we believe shares
of PARL should trade on a multiple of book value, rather than on profitability metrics, given
near term cost challenges. Thus, using a 40% discount to tangible book value, we derive
our price target of $3.

[Stocky2000]

shorted this low float pig from 2.14 to 1.83 

[la-onda]

 Parlux Announces Results for First Quarter Ended June 30, 2009
Thursday , August 06, 2009 17:13ET
Parlux Fragrances, Inc. Logo

FORT LAUDERDALE, Fla., Aug. 6, 2009 (GLOBE NEWSWIRE) -- Parlux Fragrances, Inc. (Nasdaq:PARL) announced today its results for the three months ended June 30, 2009.

Net sales for the first quarter ended June 30, 2009, increased 1% to $23.6 million, compared to $23.3 million for the same prior year period. Operating expenses were $16.9 million, compared to $19.6 million for the same prior year period, a decrease of 14%. Operating loss was $3.9 million, compared to an operating loss of $8.0 million for the same prior year period. Net loss for the three months ended June 30, 2009, was $2.5 million, compared to a net loss of $4.9 million for the same prior year period.

When compared to the comparable prior year period, domestic sales increased by 53%, offset by a decrease in international sales of 36% due to continuing economic difficulties in the global market. Sales to related parties were $5.0 million in the current quarter, compared to $1.8 million in the same prior year period due to inventory shortages experienced in the prior year which primarily affected our related party sales.

As a result of additional targeted cost cutting measures implemented during the current quarter, operating expenses decreased by 14% when compared to the same prior year period. This included reductions of 17% in advertising and promotional expenses, 18% in selling and distribution costs and 17% in general and administrative charges.

We currently have approximately $6.1 million in borrowings in excess of the borrowing base limitation under our credit facility with our current lender. As a result, we may not be allowed to borrow additional funds under the credit facility and may be required to repay the excess borrowings. We are in discussions with our current lender to convert the outstanding balance of approximately $6.7 million under the credit facility to a term loan, while seeking to obtain a replacement credit facility with a new lender over the next few months.

Neil Katz, Chairman and CEO, said, "We continue, during this difficult economic time which has kept the consumer at home, to look at further cost cutting measures. Our introductions of Paris Hilton, "Siren", Jessica Simpson, "Fancy Love", Queen Latifah, Marc Ecko and Josie Natori are all on schedule for our second quarter, while Nicole Miller has been delayed until spring 2010. All of our new brands have been well received by retailers and are already beginning to appear on counters and in display windows in stores. We expect sales to increase in the second quarter over last year's comparable period due to these new brands, despite the fact that the retail environment has not shown the same signs of improvement as other areas of the economy."