Exhibit 99.1
Deckers Outdoor Corporation Receives Expected Nasdaq Notification
Regarding Stock Listing
-- Company Has Requested Nasdaq Hearing --
GOLETA, Calif.--(BUSINESS WIRE)--Aug. 16, 2007--Deckers Outdoor Corporation
(NASDAQ: DECK) today announced that on August 13, 2007, the Company received a
determination letter from the staff of the Nasdaq Stock Market indicating that
the Company is not in compliance with the SEC filing requirements for continued
listing on the Nasdaq Global Select Market, as set forth in Marketplace Rule
4310(c)(14). As anticipated, the letter was issued in accordance with Nasdaq
procedures due to the delayed filing of the Company's Quarterly Report on Form
10-Q for the period ended June 30, 2007. The Company has requested a hearing
before the Nasdaq Listing Qualifications Panel (the "Panel") to review the
staff's determination. The hearing request will automatically stay the delisting
of the Company's common stock, and shares of the Company's common stock will
continue trading on the Nasdaq Global Select Market, pending the outcome of the
Panel's decision. However, there can be no assurance that the Panel will grant
the Company's request for continued listing as a result of the hearing.
As the Company previously reported in its Current Report on Form 8-K dated
July 26, 2007 and in its Form 12b-25 Notification of Late Filing dated August 9,
2007, the Audit Committee of the Company's Board of Directors (the "Audit
Committee"), assisted by independent outside legal counsel, has undertaken an
internal review of employee payroll declarations and certain tax payments that
were underreported and underpaid by certain of the Company's foreign
subsidiaries in foreign jurisdictions. Based upon the Audit Committee's
investigation to date, the Company believes that the inadequate declarations and
underpayments did not exceed $500,000 in any given year and $2.7 million in the
aggregate and that interest and penalties with respect thereto could range from
$3.3 million to $15.4 million. However, the Audit Committee has not yet
completed the internal review or determined whether, or in what amounts, the
underpayments will result in any government action or whether any past due
interest, fines or other penalties will be imposed. As a result, the Company has
not made a final determination as to whether a restatement of any of its
historical financial statements is necessary.
Due to the possibility of a restatement of certain financial information,
including prior year financial information necessary for comparison to interim
financial data, the Company was not able to timely file its Quarterly Report on
Form 10-Q for the period ended June 30, 2007. The Company intends to file its
Quarterly Report for the period ended June 30, 2007 as soon as practicable
following the conclusion of the Audit Committee's internal review.
About Deckers Outdoor Corporation
Deckers Outdoor Corporation builds niche products into global lifestyle
brands by designing and marketing innovative, functional and fashion-oriented
footwear developed for both high performance outdoor activities and everyday
casual lifestyle use. Teva(R), Simple(R) and UGG(R) are registered trademarks of
Deckers Outdoor Corporation.
Safe Harbor Regarding Forward-Looking Statements
Some of the information disclosed in this press release regarding our
expectations, beliefs and views about the internal review and its impact on us,
expectations regarding the timing of filing of the Company's Quarterly Report on
Form 10-Q for the period ended June 30, 2007, the necessity of restating
historical financial statements, the Company's ability to regain compliance
within any extension period that may be granted by Nasdaq, and the potential
delisting of our common stock with the Nasdaq Global Select Market, are
"forward-looking statements" as defined in the Private Securities Litigation
Reform Act of 1995. Forward-looking statements can be identified by the use of
words such as "believe," "expect," "anticipate," "intend," "plan," "estimate,"
"project," or future or conditional verbs such as "will," "would," "should,"
"could," or "may" or by the fact that such statements relate to future, and not
just historical events or circumstances, including statements related to the
results of the internal review. The forward-looking statements herein regarding
the results of the internal review and its impact on the Company, expectations
regarding the timing of filing of the Company's Quarterly Report on Form 10-Q
for the period ended June 30, 2007, the necessity of restating historical
financial statements, the Company's ability to regain compliance within any
extension period that may be granted by Nasdaq and the potential delisting of
our common stock with the Nasdaq Global Select Market are based on currently
available information as of the date of this report are subject to risks and
uncertainties that may cause actual results to differ materially from what is
expected at the current time. Readers are cautioned not to place undue reliance
on forward-looking statements contained herein, which speak only as of the date
of this disclosure. The Company undertakes no obligation to publicly release or
update the results of any revisions to forward-looking statements, which may be
made to reflect new information, events or circumstances after the date hereof
or to reflect the occurrence of unanticipated events, except as required by law.
For other factors that could cause the Company's results to vary from
expectations, please see the section titled "Risk Factors" in the Company's
Annual Report on Form 10-K for the year ended December 31, 2006 and other risk
factors detailed from time to time in the Company's filings with the Securities
and Exchange Commission.
CONTACT: Deckers Outdoor Corporation
Zohar Ziv
Chief Financial Officer and Executive Vice
President of Finance and Administration
805-967-7611
or
Investor Relations
Integrated Corporate Relations, Inc.
Chad A. Jacobs/Brendon Frey
203-682-8200