By  on December 23, 2008

Quiksilver Inc. on Thursday reported reduced fourth-quarter losses that beat Wall Street estimates.

For the three months ended Oct. 31, the loss was $955,000, or 1 cent a diluted share, from a loss of $110.9 million, or 85 cents, in the year-ago quarter. Excluding a $55.4 million goodwill impairment charge and results from discontinued operations, income in the most recent quarter was $41.6 million, or 32 cents a share, 7 cents ahead of the consensus estimate of 25 cents.

Revenues in the quarter rose 3.3 percent to $606.9 million from $587.3 million. By region, revenues were up by 9.7 percent in the Americas to $306.9 million, up 3.7 percent in Europe to $216.3 million, and up 1.8 percent in Asia-Pacific to $82.6 million.

After reducing the selling price, Quiksilver completed the disposal of the Rossignol Group in November. The business was treated as a discontinued operation, and Quiksilver said it expects to recognize a noncash loss of $150 million in the first fiscal quarter of 2009 in connection with the sale.

On a conference call with Wall Street analysts, Robert B. McKnight Jr., chairman, president and chief executive officer, said the company has continued to evaluate potential financing alternatives including private equity investment capital following its retention of Morgan Stanley as its financial adviser.

He added banking partners in Europe are looking at Quiksilver “in a different way after the sale of Rossignol, and the banks are eager to further their relationship with us.” The company has been successful in “securing amendments to several term loans and lines of credit to accommodate the impact that the worsening economy has had on our business,” he pointed out.

McKnight stated, “Despite an increasingly challenging retail environment, Quiksilver remains the clear number one surf brand in the world, Roxy is still the number one female surf brand and DC is one of the top three footwear brands in the entire action sports industry.”

For the year, the loss was $226.3 million, or $1.75 a diluted share, including impairment, from a loss of $121.1 million, or 93 cents, a year earlier. Revenues gained 10.6 percent to $2.26 billion from $2.05 billion.

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