FORT LAUDERDALE, Fla., June 29 /PRNewswire-FirstCall/ -- Parlux
Fragrances, Inc. (Nasdaq: PARL) announced today that the filing of its Form
10-K would be delayed as a result of management not yet completing its
assessment of the internal controls and reporting requirements under
Section 404 of the Sarbanes-Oxley Act of 2002 (SOX).
The Company became obligated to comply with the quicker implementation
schedule under Section 404 when it became an accelerated filer on September
30, 2005, the end of its second quarter. Management completed its testing
and has concluded that its internal control procedures contain material
weakness in areas such as access to certain computer master files,
segregation of duties, processing of certain adjustments to accounts
payable and accounts receivable, and management overrides, despite the fact
that the Company's testing did not disclose any improprieties.
The Company is completing the assessment and reporting process involved
in complying with its SOX obligations. The Company will issue its Form 10-K
after the assessment and reporting processes, including those of the
Company's independent auditors, are completed.
This delay in the Company's SOX procedures is not expected to affect
the Company's previous announcement that net sales for the fiscal year
ended March 31, 2006 will approximate $182 million and net earnings per
share will reach $2.13 ($1.07 post common stock split) per share.
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 Perry Ellis, GUESS?, XOXO, Ocean Pacific (OP),
Maria Sharapova, Andy Roddick, babyGund, and Fred Hayman Beverly Hills.
The Company may periodically release forward-looking statements
pursuant to the safe harbor provisions of the Private Securities Litigation
Reform Act of 1995. Such forward-looking statements involve known and
unknown risks, uncertainties and other factors that may cause actual
results, performance or achievements of the Company 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 the
Company's ability to introduce new products in a cost-effective manner.
Readers are cautioned not to place undue reliance on these forward-looking
statements, which speak only as of the date thereof. The Company 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, Parlux Fragrances, +1-800-758-5804, ext.
8117
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