Florida based leading prestige fragrances manufacturer & international distributor Parlux Fragrances Inc announced 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.
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