Ashworth, Inc. filed a notification with the SEC requesting an extension of time to file its Annual Report on Form 10-K for the fiscal year ended October 31, 2005.
As previously reported, the company is in negotiations with Union Bank of California N.A., as Agent for its banking syndicate, on an amendment to its bank line of credit and has tentatively agreed to a proposed term sheet. The purpose of this amendment is, among other things, to address the company's current non-compliance with certain financial covenants. The time associated with this process has prevented the company from finalizing its financial statements and providing the necessary supporting documentation to its auditor. As a result, the company's auditor was unable to complete its audit of the company's financial statements within the applicable period of time.
The company anticipates that it will be in a position to file the Form 10-K no later than the fifteenth calendar day following the date on which the Form 10-K was due. Further, assuming the company obtains the amendment to the loan agreement, the company does not anticipate that there will be any material changes in the company's financial results and status as previously reported in its December 22, 2005 earnings release.
