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CALLAWAY GOLF CONTINUES TO REPORT RECORD SALES AND EARNINGS

 CARLSBAD, Calif., April 27 /PRNewswire/ -- Callaway Golf Company (NYSE: ELY) today announced record results for its first quarter ended March 31, 1993. Income (before the cumulative effect of accounting change) increased 139 percent to $6.7 million ($.39 per share fully diluted) from $2.8 million ($.18 per share fully diluted) for the same period in 1992. Net sales increased 110 percent to $48.1 million, compared to $22.9 million for the same period in the prior year, according to Ely Callaway, chairman and chief executive officer, and Donald H. Dye, vice chairman and chief operating officer.
 "Current demand for all of our products is strong," Callaway said. "However, as stated previously, because future comparisons will be made from a considerably higher base, it is unrealistic for one to expect our growth in sales to continue at the 100 percent rate as it has for the past four years."
 The 54 percent gross margin for the March 1993 quarter was lower than the 55 percent reported in the year-ago period, primarily because of increased material costs which were partially offset by a reduction in the provision for obsolete inventory. The company's reserve for obsolete inventory at March 31, 1993, was $5.2 million, representing 24 percent of the gross inventory of $21.4 million, which management considers to be conservative.
 "The 23 percent pre-tax operating profit to sales margin for the March 1993 quarter was higher than the 21 percent earned in the comparable year-ago period, primarily because of increased sales volume. An additional charge was booked on March 31, 1993, to cover stock-option costs for mid-level management employees," Callaway said.
 "In January 1993, Callaway Golf adopted the Statement of Financial Accounting Standards No. 109 "Accounting for Income Taxes," which, among other things, allows the company to recognize to a greater degree the future tax benefits of expenses which have been recognized in previous financial statements. This benefit is recorded in the March 1993 financial statements as a one-time gain. Net income for the period, including this adjustment, was $8.4 million, or $.49 per share fully diluted," the chairman added.
 It was also announced that the board of directors has approved a second consecutive quarterly dividend of $.025 per share, payable May 28, 1993, for shareholders of record as of May 7, 1993.
 Callaway Golf designs, manufactures and markets high-quality, relatively high-priced, innovative golf clubs under the design concept known as "S2H2(R)." One of these unique products is the Big Bertha(R) line of metal woods.
 CALLAWAY GOLF COMPANY
 Summary of Operations
 (In thousands, except per share data)
 (Unaudited)
 Three Months Ended March 31,
 1993 pct 1992 pct
 Condensed Income Statement
 Net sales $48,068 100 pct $22,909 100 pct
 Cost of goods sold 22,030 46 pct 10,248 45 pct
 Gross profit 26,038 54 pct 12,661 55 pct
 Operating expenses:
 Selling expense 9,246 19 pct 4,546 20 pct
 General & administrative 4,930 10 pct 2,967 13 pct
 Research & development 785 2 pct 246 1 pct
 Income from operations 11,077 23 pct 4,902 21 pct
 Other income (expense), net 180 14
 Income before income taxes
 and cumulative effect of
 accounting change 11,257 23 pct 4,916 21 pct
 Provision for income taxes 4,512 --- 2,090 ---
 Income before cumulative effect
 of accounting change 6,745 14 pct 2,826 12 pct
 Cumulative effect of accounting
 change 1,658 ---
 Net income $8,403 17 pct $2,826 12 pct
 Primary earnings per common share:
 Income before cumulative
 effect of accounting change $.43 $.20
 Cumulative effect of
 accounting change .10 ---
 Net income $.53 $.20
 Fully diluted earnings per
 common share:
 Income before cumulative
 effect of accounting change $.39 $.18
 Cumulative effect of accounting
 change .10 ---
 Net income $.49 $.18
 Common equivalent shares:
 Primary 15,880 14,208
 Fully diluted 17,294 16,247
 CALLAWAY GOLF COMPANY
 Condensed Balance Sheet
 March 31, Dec. 31,
 1993 1992
 (Unaudited)
 Assets
 Current assets
 Cash and cash equivalents $28,756 $20,019
 Accounts receivable, net 19,188 11,302
 Inventories, net 16,233 15,285
 Deferred taxes 9,531 7,315
 Other current assets 825 1,263
 Total current assets 74,533 55,184
 Property and other assets 14,800 13,753
 Total $89,333 $68,937
 Liabilities and
 shareholders' equity
 Current liabilities:
 Accounts payable and
 accrued expenses $11,299 $6,915
 Accrued employee compensation
 and benefits 4,613 2,344
 Accrued warranty expense 5,754 4,617
 Income taxes payable 4,397 1,945
 Total current liabilities 26,063 15,821
 Long-term debt 277 3,366
 Commitments
 Shareholders' equity:
 Common stock 79 70
 Paid-in capital 37,149 31,948
 Retained earnings 25,765 17,732
 Total shareholders' equity 62,993 49,750
 Total $89,333 $68,937
 -0- 4/27/93
 /CONTACT: Carol Kerley, CFO of Callaway Golf, 619-931-1771/
 (ELY)


CO: Callaway Golf Company ST: California IN: LEI SU: ERN DIV

BP-JL -- SD002 -- 1115 04/27/93 08:01 EDT
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Date:Apr 27, 1993
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