Adams Golf today reported net sales of $31.6 million for the three months ended June 30, 2010, as compared to $23.3 million for the three months ended June 30, 2009, an increase of 36% year-over-year. Adams Golf had a net profit of $4.9 million, or 63 cents per fully diluted share, for the three months ended June 30, 2010, as compared to a loss of $5.2 million, or 78 cents per fully diluted share, for the comparable period of 2009.

The company reported net sales of $54.0 million for the six months ended June 30, 2010, as compared to $46.7 million for the comparable period of 2009, an increase of 15% year-over-year. Adams Golf had a net profit of $6.6 million, or 84 cents per fully diluted share, for the six months ended June 30, 2010, as compared to a loss of $4.8 million, or 73 cents per fully diluted share, for the comparable period of 2009.

The company's aggregate cash and cash equivalents balance was $10.1 million as of June 30, 2010 and there was no outstanding balance on its credit facility with Wells Fargo.

“We are very pleased with our second quarter and year to date financial results,” said Mr. Chip Brewer, CEO and President of Adams Golf. These results are a testament to the hard work our team has put in, not only during this quarter but over the last eighteen months, as we collectively worked through the economic fallout of late 2008 and 2009.

“Furthermore, and perhaps most importantly, we continued to make progress on our brand development and market share objectives during the quarter:

�According to Golf Datatech LLC, our year to date U.S. iron dollar share, in the combined On and Off Course Channels, was 10.03%, up 19% year over year. Our year to date wood dollar share in the same channels was 5.28%, up 7% year over year.

�We continued to strengthen our brand through tour exposure and sustained our position as the # 1 hybrid on the PGA, Nationwide and Champions tours.

�We are pleased with the market response to new premium product launches such as the Speedline 9064LS drivers and with initial sell through on recently launched product such as the Idea Pro Black Super hybrids, Idea Pro Black CB1 irons and Idea Black CB2 irons.

“Market conditions for the first half of 2010 are considerably improved over 2009; however, probably reflecting overall consumer confidence, the current industry recovery feels modest as both the consumer and our retail customer appear to be more cautious recently.

“We remain optimistic for full year results and are dedicated to working towards profitable growth of our company and the creation of long term shareholder value,” concluded Mr. Brewer.

ADAMS GOLF, INC. AND SUBSIDIARIES





CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except per share amounts)
(unaudited)






Three Months Ended
June 30,		 Six Months Ended
June 30,

2010 2009 2010 2009





Net sales $ 31,600 $ 23,254 $ 53,957 $ 46,730
Cost of goods sold 16,930 20,476 29,221 34,943
Gross profit 14,670 2,778 24,736 11,787





Operating expenses:



Research and development expenses 591 738 1,219 1,590
Selling and marketing expenses 6,716 5,437 12,409 11,387
General and administrative expenses 2,303 1,743 4,406 3,586
Total operating expenses 9,610 7,918 18,034 16,563
Operating income (loss) 5,060 (5,140) 6,702 (4,776)





Other income (expense):



Interest expense, net (9) (36) (18) (53)
Other income, net (5) 2 (6) 50





Income (loss) before income taxes 5,046 (5,174) 6,678 (4,779)
Income tax expense (benefit) 123 32 103 61
Net income (loss) $ 4,923 $ (5,206) $ 6,575 $ (4,840)





Net income (loss) per common share – basic $ 0.69 $ (0.78) $ 0.93 $ (0.73)
– diluted $ 0.63 $ (0.78) $ 0.84 $ (0.73)