Adams Golf reported net sales of $33.3 million for the second quarter ended June 30, compared to $30.4 million for the comparable period of 2007, a gain of 9%. Net income reached $1.6 million, or 21 cents a share, slightly down from $2.5 million, or 33 cents, a year ago.
“In light of today’s economic conditions, we are pleased with our second quarter performance, said Mr. Chip Brewer, CEO and President of Adams Golf. “We successfully grew both our absolute revenues and our market shares during the quarter while, in my opinion, continuing to strengthen our brand and market positions.
“Revenues in fairway woods and drivers increased 29% and 52%, respectively, for the second quarter of 2008 compared to the comparable period of 2007. These gains were driven by good acceptance of our Insight XTD line of woods and increased sell-through in our Idea hybrid product lines. Improving these positions has been a key corporate objective, and were pleased with our progress here. The supply issues for both the Insight XTD hybrid-fairway wood and driver products, which we experienced in the first quarter, were ameliorated in the second quarter. Sell-through for the Insight XTD hybrid-fairway wood product line and our Idea hybrids continued to be strong in the second quarter, and we appear to be achieving modest market share gains.
“Revenues in irons increased 3% for the second quarter of 2008 compared to the comparable period of 2007. We are pleased with our iron sell-though and market share performance during the quarter, and we believe we strengthened our market positions in this category. Our Idea a3/a3OS line of irons ended the second quarter as the # 1 brand of irons at off course golf shops, with 7.4% share. Idea remains the # 1 selling hybrid iron set brand in golf.
“The second quarter was clearly a more satisfying quarter than the first quarter, Brewer concluded. “Market conditions continued to remain challenging in the second quarter, but the market share of our Idea line of hybrid iron sets and year-over-year strength in our woods lines drove increased revenue growth in the quarter. We remain pleased with our progress in developing our market positions, organization and brand. Looking forward, we believe market conditions will likely remain challenging for the balance of 2008, but we believe we have shown that we can continue to make progress towards our growth and brand goals despite tough conditions. Looking further forward, we remain firmly optimistic regarding our long-term prospects for growth and creation of shareholder value.