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CALLAWAY GOLF REPORTS RECORD SALES AND EARNINGS FOR THE JUNE QUARTER

CALLAWAY GOLF REPORTS RECORD SALES AND EARNINGS FOR THE JUNE QUARTER
 CARLSBAD, Calif., June 21 /PRNewswire/ -- Callaway Golf Company (NYSE: ELY) announced today the results for its second quarter ended June 30, 1992, according to Donald H. Dye, vice chairman and chief operating officer, and Ely Callaway, chairman and chief executive officer.
 For the second quarter ended June 30, 1992, net sales increased 157 percent to a record $36.5 million, compared to $14.2 million for the same period in the prior year. Net income increased 197 percent to a record $6.0 million ($.69 per share) from $2.0 million ($.27 per share) for the same period in 1991.
 For the six months ended June 30, 1992, net sales increased 167 percent to a record $59.4 million from $22.2 million in 1991. Net income for the six months increased 256 percent to a record $8.8 million ($1.06 per share), as compared to $2.5 million ($.33 per share) in the same period in 1991, and as compared to $6.4 million for all of 1991.
 The percentage of pre-tax profits to net sales for the June 1992 quarter was higher than the June 1991 quarter primarily because the product mix of shipments for this period was heavily weighted toward the Big Bertha(R) metal woods and was higher than the previous quarter primarily because of seasonally increased sales volumes.
 Beginning in the third quarter, the company plans to adopt a system of allocating its product to give its customers more predictable deliveries. This new allocation system and the planned increase in production of the Big Bertha(R) club heads from the casting house is intended to reduce the number of unfilled orders and improve the company's performance for its customers.
 The company also announced that its board of directors is being expanded with the appointment of two additional directors whose terms will be effective beginning Sept. 1, 1992. The additions are Dr. William E. Ayer of Menlo Park, Calif., and Michael Sherwin of Cleveland, Ohio. Biographical sketches are below. Biographical Sketches for Additional Directors, Callaway Golf Company
 Dr. William E. Ayer of Menlo Park, is well known in the Northern California business and venture capital community. He served for 14 years as a trustee of Stanford University. Ayer has been a director of a number of public and private companies and has been a shareholder of Callaway Golf Company for seven years. The founder of Applied Technology Inc. in 1959, Ayer holds A.B., A.M., E.E. and Ph.D. degrees form Stanford University. His principal activities are as business consultant and private investor.
 Michael Sherwin of Cleveland, president of Mid-West Forge Corp. in Cleveland, invested in Callaway Golf Company in 1985 by virtue of his position as head of the venture capital department of the National City Corp. of Cleveland. Sherwin is an active director of several publicly owned companies as well as private ones. From 1968 until 1974, he was a general partner in Prescott, Ball and Turben, Cleveland. In 1965, Sherwin obtained his MBA-Finance at the Wharton Graduate Division, University of Pennsylvania. He currently serves as president and director of the Cleveland Museum of Art.
 CALLAWAY GOLF COMPANY
 Summary of Operations
 (In thousands, except per share data)
 Second quarter ended June 30,
 1992 pct 1991 pct
 Condensed Income Statement
 (Unaudited)
 Net sales $36,526 100 $14,226 100
 Cost of goods sold (17,222) 47 (6,813) 48
 Gross profit 19,304 53 7,413 52
 Operating expenses:
 Selling (5,408) 15 (2,877) 20
 General and administrative (3,460) 9 (1,022) 7
 Research and development (370) 1 (168) 1
 Income from operations 10,066 28 3,346 24
 Other income (expenses) 128 --- (45) ---
 Income before income taxes 10,194 28 3,301 23
 Provision for income taxes (4,227) 12 (1,298) 9
 Net income $5,967 16 $2,003 14
 Earnings per common share:
 Primary $0.77 $0.30
 Fully diluted $0.69 $0.27
 Common equivalent shares:
 Primary 7,790 6,711
 Fully diluted 8,654 7,679
 Six months ended June 30,
 1992 pct 1991 pct
 Condensed Income Statement
 (Unaudited)
 Net sales $59,435 100 $22,232 100
 Cost of goods sold (27,470) 46 (10,951) 49
 Gross profit 31,965 54 11,281 51
 Operating expenses:
 Selling (9,954) 17 (5,091) 23
 General and administrative (6,427) 11 (1,729) 8
 Research and development (616) 1 (334) 2
 Income from operations 14,968 25 4,127 19
 Other income (expenses) 142 --- (67) ---
 Income before income taxes 15,110 25 4,060 18
 Provision for income taxes (6,316) 11 (1,596) 7
 Net income $8,794 15 $2,464 11
 Earnings per common share:
 Primary $1.19 $0.37
 Fully diluted $1.06 $0.33
 Common equivalent shares:
 Primary 7,394 6,711
 Fully diluted 8,353 7,625
 June 30, Dec. 31,
 1992 1991
 (unaudited)
 Condensed Balance Sheet
 Assets
 Current assets:
 Cash and cash equivalents $27,577 $5,178
 Accounts receivable, net 13,736 6,113
 Inventories 10,237 11,188
 Other current assets 3,807 2,900
 Total current assets 55,357 25,379
 Property and other assets 8,162 3,445
 Total $63,519 $28,824
 Liabilities and Shareholders'
 Equity
 Current liabilities 18,659 9,147
 Long-term debt 3,500 4,450
 Shareh16
 Paid-in capital 29,045 11,738
 Retained earnings 12,244 3,450
 Total shareholders' equity 41,360 15,227
 Total $63,519 $28,824
 -0- 7/21/92 R
 /CONTACT: Ely Callaway, chairman and CEO, Carol Kerley, senior VP and CFO, or Don Dye, vice chairman and COO, of Callaway Golf, 619-931-1771/
 (ELY) CO: Callaway Golf Company ST: California IN: LEI SU: ERN JB-JL -- SD002 -- 1339 07/21/92 12:38 EDT
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Date:Jul 21, 1992
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