Quiksilver Inc announced operating results for the fourth quarter and full year ended October 31, 2007. Consolidated net revenues for the fourth quarter of fiscal 2007 increased 6% to $779.2 million compared to $731.8 million in the fourth quarter of fiscal 2006.

Pro-forma net income, adjusted to eliminate non-cash tax-effected special charges, for the fourth quarter of fiscal 2007 was $65.9 million or $0.51 per share compared to $65.8 million or $0.51 per share the year before.

The fiscal 2007 pro-forma result is in line with our expectations after excluding Cleveland Golf, which was sold earlier this week. Consolidated income from continuing operations for the fourth quarter of fiscal 2007 was a loss of $104.9 million or $0.84 per share compared to income of $65.8 million or $0.51 per share the year before.

Net revenues and income from continuing operations for all periods excludes the results of our golf equipment business which are reported as discontinued operations. The loss from continuing operations for the fourth quarter of fiscal 2007 includes $170.7 million of non-cash charges primarily related to goodwill impairment, net of tax. A quantitative reconciliation from our GAAP results to our pro-forma quarterly results is provided in the accompanying tables.

Consolidated net revenues for the full year of fiscal 2007 increased 10% to $2.43 billion compared to $2.20 billion in fiscal 2006. Our pro-forma net income, adjusted to eliminate the tax-effected special charges (primarily non-cash), for the fiscal year 2007 was $74.2 million or $0.57 per share compared to $94.1 million or $0.74 per share the year before.

Consolidated income from continuing operations for the full year of fiscal 2007 was a loss of $98.6 million or $0.80 per share compared to income of $94.1 million or $0.74 per share in fiscal 2006. The loss from continuing operations for the full fiscal year includes $172.9 million of primarily non-cash special charges, net of tax.

Robert B. McKnight, Jr., Chairman of the Board and Chief Executive Officer of Quiksilver Inc, commented, "We are pleased to see continuing strength in each of our apparel and footwear brands, which grew their revenue for the year by 19% to $2.0 billion.

We believe that we can maintain double digit rates of revenue growth and unlock significant profitability in these businesses over the next several years. These strong results are masked by the difficulties we've experienced in the equipment business, which includes the charge we have taken during the fourth quarter to reduce goodwill.

While this is unfortunate, we remain optimistic about our longer-term prospects. We have seen and overcome difficult market conditions at a variety of points in our history and have always emerged a stronger company."