Fourth quarter net revenues increased 32% to $18.7 million compared with $14.1 million in the same period in 2005. Net licensing revenues for the fourth quarter were $3.3 million versus $3.1 million in the same quarter last year, however, licensing revenues were impacted by the company’s decision not to renew its previous footwear licence, as well as an increase in licensing commissions resulting from the litigation settlement which required it to pay commissions to a former agent in 2006. These two factors negatively impacted licensing revenues by approximately $400,000. The increase in licensing revenue was driven by strong athletic lifestyle product sales in both South Korea and the UK and strong expansion in Hand-Exercise distribution worldwide. Revenues from sporting goods for the fourth quarter were a record $15.4 million, up 40% from $11 million in the year-ago period.

For the full year, net revenues increased 20% to $51.9 million, versus $43.3 million in 2005. Net licensing revenues for the year were $12.3 million, versus $12 million the previous year. The growth in licensing was a result of the emergence of several new licensees in the UK and South Korea as well as new market penetration from historically strong licensees in Italy, Brazil and Chile. Revenues from sporting goods for the year were up 27% to a record $39.6 million versus $31.3 million in 2005.

The company has increased its guidance for fiscal 2007, anticipating net revenues in the range of $56 million to $58 million compared with its prior guidance of $53 million to $55 million and earnings in the range of $11.3 million to $11.7 million versus the prior range of $10.4 million to $10.8 million.

Share this story: