Ashworth, Inc. Announces Management Changes and Workforce Reductions.Eddie Fadel Returns as President CARLSBAD, Calif. -- Ashworth, Inc., (NASDAQ NASDAQ in full National Association of Securities Dealers Automated Quotations U.S. market for over-the-counter securities. Established in 1971 by the National Association of Securities Dealers (NASD), NASDAQ is an automated quotation system that reports on :ASHW), a leading designer of on course golf apparel and golf-inspired lifestyle sportswear, today announced a series of personnel changes: * Edward ("Eddie") J. Fadel has returned to Ashworth as President, effective immediately. Mr. Fadel will oversee all of Ashworth's sales, customer service and sourcing and will have shared responsibility for design with John Ashworth. Mr. Fadel worked at Ashworth between 2001 and 2004 and most recently served as Senior Vice President of Merchandising and Design. During that time, Mr. Fadel supervised both the Ashworth and Callaway Golf divisions and launched the Callaway Golf apparel line. * Gary I. (Sims) Schneiderman, President, has left the Company to pursue other interests. * Peter E. Holmberg, Executive Vice President - Green Grass Sales and Merchandising, has resigned in order to return to his home in Seattle. * As part of its ongoing cost reduction initiatives and in an effort to streamline the Company, 16 staff positions have been eliminated. The Company is implementing this workforce reduction to better align its cost structure with its core business strategy. "We are delighted to welcome Eddie back to the Ashworth team," said Peter M. Weil, Chief Executive Officer of Ashworth. "Eddie is a proven leader with unmatched experience in the apparel and golf industries. He brings to Ashworth a deep understanding of our customers, our business and our strategic vision. With more than 30 years of experience in the apparel industry, including approximately 20 years in the golf industry, Eddie is uniquely qualified to help Ashworth further capitalize on Cap´i`tal`ize on` v. t. 1. To turn (an opportunity) to one's advantage; to take advantage of (a situation); to profit from; as, to capitalize on an opponent's mistakes s>. the progress we are making." Mr. Fadel, 51, most recently served as Vice President of Merchandising at Greg Norman Noun 1. Greg Norman - Australian golfer (born in 1955) Gregory John Norman, Norman / Reebok Ree´bok` n. 1. (Zool.) The peele. . Previously, he served as Chief Strategist of Apparel at Ahead where he formulated apparel and headwear head·wear n. A hat or other covering for the head. strategies for both the Ahead men's line and Kate Lord women's line. Prior to that, Mr. Fadel served as Senior Vice President of Merchandising and Design at Ashworth from 2002 to 2004. Mr. Fadel joined Ashworth in 2001 and served as Vice President - Callaway Golf Apparel Merchandising & Design until his promotion in 2002. Mr. Fadel worked as a consultant with various apparel manufacturers from 2000 until 2001. Prior to that, Mr. Fadel founded and served as President of Elandale Golfwear, a women's sportswear producer, from 1995 to 2000 and as President of Cutter & Buck Big & Tall (a division of The Jeremy Dold Co.) from 1992 to 1995. Mr. Weil added, "We greatly appreciate the many valuable contributions from Gary Sims and Peter Holmberg Peter Holmberg (born October 4, 1960 on Saint Thomas) is a sailor from the U.S. Virgin Islands, who won a silver medal in Men's Finn Class in the 1988 Summer Olympics, his country's only Olympic medal so far. External links
"Long-term sustainable profitability is and has always been one of Ashworth's top priorities," said James B. Hayes, Chairman of Ashworth's Board of Directors. "Our Board and management team are confident that the steps we are taking today will help ensure the long-term health and competitiveness of the Company and create value for all of our stockholders." "The decision to reduce our workforce is an extremely difficult, but necessary decision for Ashworth," added Mr. Weil. "We are committed to minimizing the impact on the affected employees and providing them with severance and other benefits that recognize their valued contributions to this Company." About Ashworth, Inc. Ashworth, Inc. (NASDAQ:ASHW) is a leading designer of men's and women's golf-inspired lifestyle sportswear distributed domestically and internationally in golf pro shops, resorts, upscale department and specialty stores and to corporate customers. Ashworth's three market-leading brands include: Ashworth Collection (TM), a range of upscale sportswear designed to be worn on and off course; Ashworth Authentics (TM), which showcases popular items from the Ashworth line; and Ashworth Weather Systems[R], a technical performance line. Ashworth is also an Official Apparel Licensee of Callaway Golf Company Callaway Golf Company is an American golf company based in Carlsbad, California. They manufacture woods, irons, wedges, putters and golf balls and license its name for apparel, footwear, timepieces and accessories. . Ashworth is also a leading designer, producer and distributor of headwear and apparel under The Game[R] and Kudzu kudzu (k d`z ), plant of the family Leguminosae (pulse family), native to Japan. [R] brands. The Game is
a leading headwear brand to collegiate bookstores and Kudzu products are
sold into the NASCAR/racing markets and through outdoors sports
distribution channels, including fishing and hunting. Ashworth is also
the exclusive on-site event merchandiser for the Kentucky Derby Kentucky DerbyOne of the classic U.S. Thoroughbred horse races. It was established in 1875 and run annually on the first Saturday in May at Churchill Downs track in Louisville, Ky. With the Preakness and the Belmont Stakes, it makes up U.S. racing's coveted Triple Crown. . For more information, please visit the Company's Web site at www.ashworthinc.com. Forward-Looking Statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. This press release contains forward-looking statements related to the Company's market position, finances, operating results, marketing and business plans and strategies within the meaning of Section 27A of the Securities Act, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. These forward-looking statements may contain the words "believes," "anticipates," "expects," "predicts," "estimates," "projects," "will be," "will continue," "will likely result," or other similar words and phrases Words and Phrases® A multivolume set of law books published by West Group containing thousands of judicial definitions of words and phrases, arranged alphabetically, from 1658 to the present. . Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date hereof. The Company undertakes no obligation to update any forward-looking statements, whether as a result of new information, changed circumstances or unanticipated events unless required by law. These statements involve risks and uncertainties that could cause actual results to differ materially from those projected. These risks include the uncertainties associated with implementing a successful transition in executive leadership, the continued willingness of our lenders to provide waivers of compliance with financial covenants, the evaluation of strategic alternatives that may be presented, timely development and acceptance of new products, as well as strategic alliances, the integration of the Company's acquisition of Gekko Brands, LLC (Logical Link Control) See "LANs" under data link protocol. LLC - Logical Link Control , the impact of competitive products and pricing, the success of the Callaway Golf apparel product line, the preliminary nature of bookings information, the ongoing risk of excess or obsolete inventory Obsolete Inventory Term that refers to inventory that is at the end of its product life cycle and has not seen any sales or usage for a set period of time usually determined by the industry. This type of inventory has to be written down and can cause large losses for a company. , the potential inadequacy of booked reserves, the successful operation of the distribution facility in Oceanside, CA, the successful implementation of the Company's ERP (Enterprise Resource Planning) An integrated information system that serves all departments within an enterprise. Evolving out of the manufacturing industry, ERP implies the use of packaged software rather than proprietary software written by or for one customer. system, and other risks described in Ashworth, Inc.'s SEC reports, including the annual report on Form 10-K Form 10-K A report required by the SEC from exchange-listed companies that provides for annual disclosure of certain financial information. Form 10-K See 10-K. for the year ended October 31, 2006, quarterly reports on Form 10-Q Form 10-Q See 10-Q. filed thereafter and amendments to any of the foregoing reports, including the Form 10-K/A for the year ended October 31, 2006. |
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