Philadelphia based maternity apparel retailer Mothers Work Inc announced that it will delay its first quarter Fiscal 2006 earnings release and conference call, previously scheduled for Wednesday, January 25, 2006, and announced that, excluding the impact of non-cash stock- based compensation expense, it projects that first quarter earnings will exceed the Company's previous earnings guidance.
The delay in the first quarter earnings release is due to changes recently proposed by the Financial Accounting Standards Board (FASB) to Statement of Financial Accounting Standards No. 123, Share Based Payment (SFAS No. 123), which relates to non-cash stock-based compensation expense.
On January 16, 2006, the FASB issued a proposed Staff Position that, if adopted, would amend certain provisions of SFAS No. 123 and would affect the Company's non-cash stock- based compensation expense recognized pursuant to SFAS No. 123, which the Company initially adopts and reflects in its financial results for the first quarter of Fiscal 2006, ended December 31, 2005.
The deadline for public comment on the proposed FASB Staff Position is January 31, 2006, after which the FASB is expected to make a final determination regarding the proposed rule changes.
Ed Krell, Executive Vice President-Chief Financial Officer of Mothers Work, commented, "Since the adoption of the FASB's proposed amendment to SFAS No. 123 would affect their non-cash stock-based compensation expense, and thus would affect their reported earnings, they believe it makes sense to wait until the FASB makes a final determination regarding the proposed changes before they release their first quarter earnings.
marketing@alchempro.com
