FORT LAUDERDALE, Fla., Feb. 21 /PRNewswire-FirstCall/ -- Parlux
Fragrances, Inc. (Nasdaq: PARL) announced today that, as it expected, due
to the delay in filing its Quarterly Report on Form 10-Q for the period
ended December 31, 2006 (the "December Report"), the Company received a
letter from The Nasdaq Stock Market indicating that this matter will serve
as an additional basis for a decision regarding delisting the Company's
securities from the Nasdaq Global Select Market. Pursuant to Nasdaq
Marketplace Rule 4804(c), the Company will present its views with regards
to this additional deficiency to the Nasdaq Listing Qualifications Panel.
Nasdaq Marketplace Rule 4310(c)(14) requires the Company to file all
reports with the Securities and Exchange Commission on a timely basis, as
required by the Securities Exchange Act of 1934, as amended.
The filing of the Company's September 30, 2006 Quarterly Report on Form
10-Q (the "September Report") continues to be delayed. On November 8, 2006,
a Consolidated Amended Class Action Complaint (the "Amended Complaint") was
filed, consolidating five Class Action Complaints previously filed during
August and September 2006 (the "Class Actions"). The Class Actions alleged
the Company made knowingly false statements about its revenues and
profitability beginning on February 8, 2006. It also contains allegations
regarding the sale of Company shares by certain former Company directors
while allegedly in possession of material non-public information. The
Amended Complaint included the allegations in the Class Actions, as well as
new allegations that the Company improperly recognized revenue on sales to
related parties during the three months ended September 30, 2005 and failed
to comply with certain SEC disclosure rules surrounding "Management's
Discussion and Analysis of Financial Condition and Results of Operations".
As a result of the new allegations in the Amended Complaint, and at the
request of the Company's independent registered public accountants, the
Company's Audit Committee, in late November 2006, engaged experienced
Special Audit Committee Counsel, who then simultaneously engaged
experienced independent forensic accountants, to investigate the
allegations. Their investigation is in progress. The Company anticipates
filing its September Report as soon as practicable after completion of this
investigation and the ensuing completion of the review by the Company's
independent registered public accountants. Preparation of the December
Report, concerning which this press release pertains, is in process and
will be filed shortly thereafter.
On February 14, 2007, the United States District Court for the Southern
District of Florida entered an order granting the motion of the defendants,
including the Company, to dismiss the Amended Complaint. The motion had
argued that the Amended Complaint failed to meet the pleading requirements
applicable to a case of this nature. The dismissal was without prejudice to
the filing of an Amended Complaint by March 8, 2007.
About Parlux Fragrances, Inc.
Parlux Fragrances, Inc. is a manufacturer and international distributor
of prestige products. It holds licenses for Paris Hilton fragrances,
watches, cosmetics, sunglasses, handbags and other small leather
accessories in addition to licenses to manufacture and distribute the
designer fragrance brands of GUESS?, XOXO, Ocean Pacific (OP), Maria
Sharapova, Andy Roddick, babyGund, and Fred Hayman Beverly Hills.
Certain Information Regarding Forward-Looking Statements
This press release includes forward-looking statements within the
meaning of Section 27A of the Securities Act of 1933, as amended, and
Section 21E of the Securities Exchange Act of 1934, as amended, regarding,
among other things, our plans, strategies and prospects, both business and
financial. Such forward-looking statements involve known and unknown risks,
uncertainties and other factors that may cause actual results, performance
or achievements of Parlux or its industry to be materially different from
any future results, performance or achievements expressed or implied by
such forward-looking statements. These risks and uncertainties include,
among others, future trends in sales and Parlux's ability to introduce new
products in a cost- effective manner, general economic conditions and
continued compliance with the covenants in our credit facility. Readers are
cautioned not to place undue reliance on these forward-looking statements,
which speak only as of the date thereof. Parlux undertakes no obligation to
publicly release the result of any revisions to these forward-looking
statements that may be made to reflect events or circumstances after the
date hereof or to reflect the occurrence of unanticipated events.
SOURCE Parlux Fragrances, Inc.
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Related links:
http://www.parlux.com
http://www.prnewswire.com/comp/674987.html /
CONTACT:
Frank A. Buttacavoli, Executive Vice
President & COO-CFO of Parlux Fragrances, Inc., +1-954-316-9008,
ext. 8117
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