PARL Parlux Fragrances, Inc. (MM)

FORT LAUDERDALE, Fla., Aug. 17 /PRNewswire-FirstCall/ -- Parlux Fragrances, Inc. (NASDAQ:PARL) announced today that its 10-Q filing for the quarter ended June 30, 2006 has been delayed pending determination of a non- cash charge to be recorded in accordance with Statement of Financial Accounting Standards ("FAS") No. 123R "Share Based Payment" (FAS 123R) related to adjustments to outstanding warrants resulting from the Company's recent stock split. As has been previously announced, the Company approved a 2-for-1 stock split effected June 16, 2006 (which was reflected in the market price of its stock on June 19, 2006); and consistent with prior practice, modified its outstanding warrants accordingly. Under FAS 123R, which the Company was required to adopt at the beginning of the quarter, companies that are involved in equity restructurings (including stock splits) are, in certain circumstances, required to measure and record as compensation expense, the increase in the fair value of their outstanding stock options and warrants resulting from such modifications. This non-cash charge relates solely to the stock split and applies to all outstanding warrants as of the date of the stock split. These warrants were issued during the period 1999 through 2002 and are fully vested; accordingly, the full amount of this charge (net of the applicable tax benefit, if any) will be reflected in the results of operations for the quarter offset by a corresponding increase in stockholder equity. The Company had previously estimated net earnings for the quarter in the range of $0.04 to $0.05 per share excluding the effect of this charge. The charge resulting from the effect of the change in fair value relating to the adjustment in the number and exercise price of the warrants, as a result of the stock split, is expected to be finalized within the next few days and the 10-Q filed shortly thereafter. 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 circum-stances after the date hereof or to reflect the occurrence of unanticipated events. DATASOURCE: Parlux Fragrances, Inc. CONTACT: Ilia Lekach, ext. 8116, or Frank A. Buttacavoli, ext. 8117, both of Parlux Fragrances, +1-954-316-9008 Web site: http://www.parlux.com/ Company News On-Call: http://www.prnewswire.com/comp/674987.html

Copyright