Perfume maker Parlux Fragrances Inc has announced its unaudited fiscal 2006 results reflecting sales of $182,236,594 compared to its prior year of $100,360,981, an increase of 82 percent.
Unaudited net income was $22,483,263, or $2.13 per diluted share compared to prior year net income of $10,824,256, or $1.02 per share, an increase of 109 percent, exceeding previous estimates.
On June 9th 2006, the company filed a Form 12b-25, requesting an extension for filing its Annual Report on Form 10-K for the fiscal year ended March 31st 2006. Due to the increase in the company's market capitalization as measured on September 30th 2005, the company became an accelerated filer under the Sarbanes-Oxley Act of 2002 ('SOX'). While reducing the year-end filing requirement from 90 to 75 days, SOX also required the company to assess its internal controls and report on their effectiveness as of March 31st 2006.
In spite of its best efforts and significant expense, the company will be unable to complete certain of these new requirements by the initial filing due date of June 14th 2006.
While the company has grown rapidly, it has not significantly expanded its administrative staff to assist with the preparation of its financial statements, nor modified major systems/applications for recording of transactions.
Management's review, testing and assessment of its internal control procedures required by SOX has identified certain documentation, designand operating deficiencies, some of which management believes will be categorized as material weaknesses.
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