8-K

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 8-K

CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

Date of Report (Date of earliest event reported): June 8, 2006

Quiksilver, Inc.

(Exact name of registrant as specified in its charter)

Delaware (State or other jurisdiction of incorporation)	1-14229 (Commission File Number)	33-0199426 (IRS Employer Identification Number)
15202 Graham Street, Huntington Beach, CA (Address of principal executive offices)		92649 (Zip Code)

Registrant’s telephone number, including area code: (714) 889-2200

 
(Former name or former address, if changed since last report)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

o Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

o Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

o Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

o Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

TABLE OF CONTENTS

	Item 2.02 Results of Operations and Financial Condition
	Item 9.01 Financial Statements and Exhibits
SIGNATURES
INDEX TO EXHIBITS
EXHIBIT 99.1

Item 2.02 Results of Operations and Financial Condition

     The purpose of this Current Report on Form 8-K is to furnish the press release issued by Quiksilver, Inc. on June 8, 2006 announcing its financial results for the quarter ended April 30, 2006. The press release is attached hereto as Exhibit 99.1.

     In addition to Quiksilver’s GAAP financial information, the press release furnished with this report as Exhibit 99.1 reports diluted earnings per share excluding stock option based compensation expense, which is considered a non-GAAP financial measure. Quiksilver adopted SFAS 123(R) on November 1, 2005 which requires companies to recognize compensation expense equal to the fair value of stock options or other share based payments. Quiksilver believes that this non-GAAP information provides consistency and comparability with the its past financial reports, and also facilitates comparisons with other companies, many of which use similar non-GAAP information to supplement their GAAP results. Quiksilver has chosen to provide this information to investors to enable them to perform additional analyses of past, present and future operating performance and as a supplemental means to evaluate the Quiksilver’s operations.

     The non-GAAP information should not be considered a substitute for financial information presented in accordance with GAAP, and may be different from non-GAAP or other proforma measures used by other companies.

     The information in this Form 8-K and Exhibit shall not be deemed filed for purposes of Section 18 of Securities Exchange Act of 1934, nor shall it be deemed incorporated by reference in any filing under the Securities Act of 1933, except as shall be expressly set forth by specific reference in such filing.

Item 9.01 Financial Statements and Exhibits

(c) Exhibits

     The following exhibits are being furnished herewith:

Exhibit No.	Exhibit Title or Description
99.1	Press Release dated June 8, 2006, issued by Quiksilver, Inc.

SIGNATURES

     Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

	Quiksilver, Inc. (Registrant)
Dated: June 8, 2006	By:	/s/Steven L. Brink
		Name:	Steven L. Brink
		Title:	Chief Financial Officer and Treasurer

INDEX TO EXHIBITS

Exhibit Number	Exhibit Title or Description
99.1	Press Release, dated June 8, 2006, issued by Quiksilver, Inc.

EX-99.1

Exhibit 99.1

Company Contact:	Steven L. Brink
	Chief Financial Officer
	Quiksilver, Inc.
	(714) 889-2200
Investor Relations:	Chad A. Jacobs, Joe Teklits, James Palczynski
	Integrated Corporate Relations
	(203) 682-8200

— Quiksilver, Inc. Reports 2006 Second Quarter Financial Results —
— Second Quarter 2006 Net Revenues Increase 21% to $516.9 million —
— Second Quarter Fiscal 2006 Earnings Per Share Was $0.03 —
— Excluding Stock Compensation Expense, EPS Was $0.06, In Line With Guidance —
— Company Reiterates Fiscal 2006 Guidance —

Huntington Beach, California, June 8, 2006 — Quiksilver, Inc. (NYSE:ZQK) today announced operating results for the second quarter ended April 30, 2006. Consolidated net revenues for the second quarter of fiscal 2006 increased 21% to $516.9 from $426.9 million in the second quarter of fiscal 2005. Consolidated net income for the second quarter of fiscal 2006 was $3.7 million compared to $34.7 million the year before. The Company’s fiscal 2006 quarterly results include Rossignol and Cleveland Golf, which were acquired in July 2005. Rossignol’s business is seasonal and has a positive effect on the Company’s first and fourth quarters when it generates profits but has a negative effect in the second and third quarters during its seasonally low shipping periods. Consolidated net income for the second quarter of fiscal 2006 includes $3.8 million in stock compensation required to be expensed by current accounting standards. No stock compensation expense was recorded in the second quarter of fiscal 2005. Second quarter fully diluted earnings per share was $0.03 versus $0.28 for the second quarter of fiscal 2005. Earnings per share on a fully diluted basis, excluding stock compensation expense and the related tax effect, was $0.06 for the second quarter of fiscal 2006, in line with the company’s previous guidance. The $0.03 difference between $0.06 per share, excluding stock compensation expense, and actual earnings per share of $0.03 per share is determined by dividing $3.8 million, which is the tax-effected stock compensation expense, by 127.8 million weighted average common shares outstanding, assuming dilution.

Net revenues from the company’s newly acquired Rossignol and Cleveland Golf businesses totaled $86.2 million during the second quarter ended April 30, 2006.

Robert B. McKnight, Jr., Chairman of the Board and Chief Executive Officer of Quiksilver, Inc., commented, “We were pleased to meet our profitability targets for the quarter and we remain confident in our ability to do so for the remainder of the year. Our core business is strong, despite some short-term challenges in the Asia-Pacific region. Even with this softness, our diversified business model enabled us to achieve our overall objectives. Additionally, we are excited that our Rossignol business performed above expectations in the second quarter and that the integration is proceeding smoothly.”

Net revenues in the Americas increased 26% during the second quarter of fiscal 2006 to $250.0 million from $199.2 million in the second quarter of fiscal 2005. As measured in U.S. dollars and reported in the financial statements, European net revenues increased 23% during the second quarter of fiscal 2006 to $217.1 million from $176.3 million in the second quarter of fiscal 2005. As measured in euros, European net revenues increased 33% for those same periods. Asia/Pacific net revenues decreased 4% to $48.2 million in the second quarter of fiscal 2006 from $50.3 million in the second quarter of fiscal 2005. As measured in Australian dollars, Asia/Pacific net revenues increased 2% for those same periods.

Quiksilver, Inc. 2006 Second Quarter Results
June 8, 2006
Page 2 of 7

Inventories totaled $402.0 million at April 30, 2006, which includes $191.0 million from the newly acquired Rossignol and Cleveland Golf businesses. Inventories related to the company’s other businesses grew 19% to $211.0 million at April 30, 2006 from $177.8 million at April 30, 2005. Excluding Rossignol and on a like-for-like basis, average turnover was 3.9x at April 30, 2006 versus 4.1x at April 30, 2005. Accounts receivable totaled $483.0 million at April 30, 2006, which includes $123.0 million from the newly acquired Rossignol and Cleveland Golf businesses. Accounts receivable related to the company’s other businesses increased 5% to $360.0 million at April 30, 2006 from $342.0 million at April 30, 2005.

Bernard Mariette, President of Quiksilver, Inc., commented, “During the quarter we developed a clear focus on priorities, executed well, completed a large portion of our restructuring and integration for Rossignol, and positioned the company to achieve both its short term and long-term objectives. The combination of our powerful brands, our world-class team, and our comprehensive strategic vision for the business will enable us to continue to create a wide variety of compelling growth opportunities, including the creation of a full line of lifestyle apparel products under the Rossignol brand to be launched in 2007.”

Mr. Mariette continued, “We recently returned from our global management meeting with all of our senior managers in Hawaii, and the commitment and ambition of this team is tremendous. Our vision is clear, our brands have great potential and we remain dedicated to further building our position as the world’s leader in the outdoor market.”

The Company reiterated its fiscal 2006 annual revenue guidance of $2.25 to $2.27 billion and its fiscal 2006 annual diluted earnings per share guidance of $0.87 to $0.88, before stock compensation expense and the related tax effect. Stock compensation expense is expected to reduce fiscal 2006 annual diluted earnings per share by $0.11.

Mr. McKnight concluded, “The restructuring of the management team and back office for Rossignol is largely completed. We’ve eliminated redundancy, done away with the operational silos that limited growth and profitability, streamlined our infrastructure, and consolidated our warehousing and distribution operations. The integration is on plan, our core business remains strong and we are excited to demonstrate the power of our brands to our shareholders over the quarters and years to come.”

About Quiksilver:
Quiksilver, Inc. (NYSE:ZQK) is the world’s leading outdoor sports lifestyle company, which designs, produces and distributes a diversified mix of branded apparel, wintersports and golf equipment, footwear, accessories and related products. The Company’s apparel and footwear brands represent a casual lifestyle for young-minded people that connect with its boardriding culture and heritage, while its wintersports and golf brands symbolize a long standing commitment to technical expertise and competitive success on the mountains and on the links.

The reputation of Quiksilver’s brands is based on different outdoor sports. The Company’s Quiksilver, Roxy, DC Shoes and Hawk brands are synonymous with the heritage and culture of surfing, skateboarding and snowboarding, and its beach and water oriented swimwear brands include Raisins, Radio Fiji and Leilani. The Rossignol, Dynastar, Lange, Look and Kerma brands are leaders in the alpine ski market, and the Company makes snowboarding equipment under its Rossignol, Dynastar, DC Shoes, Roxy, Lib Technologies, Gnu and Bent Metal labels. The Company’s golf business includes Cleveland Golf, as well as Never Compromise putters and Fidra apparel. Gotcha is the Company’s surf-based European brand addressing street fashion.

Quiksilver, Inc. 2006 Second Quarter Results
June 8, 2006
Page 3 of 7

The Company’s products are sold in over 90 countries in a wide range of distribution, including surf shops, ski shops, skateboard shops, snowboard shops, its proprietary Boardriders Club shops, other specialty stores and select department stores. Quiksilver’s corporate and Americas’ headquarters are in Huntington Beach, California, while its European headquarters are in St. Jean de Luz and Voiron, France, and its Asia/Pacific headquarters are in Torquay, Australia.

Forward looking statements:

This press release contains forward-looking statements including but not limited to statements regarding the company’s financial forecast, earnings and revenue guidance and the success of the Rossignol integration activities. These forward-looking statements are subject to risks and uncertainties, and actual results may differ materially. Please refer to Quiksilver’s SEC filings for more information on the risk factors that could cause actual results to differ materially from expectations, specifically the section titled “Forward-Looking Statements” in Quiksilver’s Annual Report on Form 10-K.

* * * * *

NOTE: For further information about Quiksilver, Inc., you are invited to take a look at our world at www.quiksilver.com,
www.roxy.com, www.dcshoecousa.com, www.quiksilveredition.com, www.hawkclothing.com,
www.rossignol.com, www.dynastar.com,
www.clevelandgolf.com, and www.fidragolf.com.

Quiksilver, Inc. 2006 Second Quarter Results
June 8, 2006
Page 4 of 7

CONSOLIDATED STATEMENTS OF INCOME (Unaudited)

	Three Months Ended April 30,
In thousands, except per share amounts	2006			2005
Revenues, net	$	516,928		$	426,853
Cost of goods sold		282,438			233,488
Gross profit		234,490			193,365
Selling, general and administrative expense		215,838			139,314
Operating income		18,652			54,051
Interest expense		11,949			3,269
Foreign currency gain		(496	)		(288	)
Minority interest and other expense (income)		1,637			(61	)
Income before provision for income taxes		5,562			51,131
Provision for income taxes		1,833			16,464
Net income	$	3,729		$	34,667
Net income per share	$	0.03		$	0.29
Net income per share, assuming dilution	$	0.03		$	0.28
Weighted average common shares outstanding		122,018			118,169
Weighted average common shares outstanding, assuming dilution		127,790			123,791

Quiksilver, Inc. 2006 Second Quarter Results
June 8, 2006
Page 5 of 7

CONSOLIDATED STATEMENTS OF INCOME (Unaudited)

	Six Months Ended April 30,
In thousands, except per share amounts	2006			2005
Revenues, net	$	1,058,070		$	769,713
Cost of goods sold		575,019			423,442
Gross profit		483,051			346,271
Selling, general and administrative expense		427,143			268,797
Operating income		55,908			77,474
Interest expense		24,540			5,058
Foreign currency (gain) loss		(993	)		175
Minority interest and other expense		411			145
Income before provision for income taxes		31,950			72,096
Provision for income taxes		9,618			23,215
Net income	$	22,332		$	48,881
Net income per share	$	0.18		$	0.41
Net income per share, assuming dilution	$	0.18		$	0.40
Weighted average common shares outstanding		121,721			117,877
Weighted average common shares outstanding, assuming dilution		127,479			123,448

Quiksilver, Inc. 2006 Second Quarter Results
June 8, 2006
Page 6 of 7

CONSOLIDATED BALANCE SHEETS (Unaudited)

	April 30,			October 31,
In thousands	2006			2005
ASSETS
Current assets:
Cash and cash equivalents	$	96,818		$	75,598
Trade accounts receivable, less allowance for doubtful accounts of $19,875 (2006) and $10,727 (2005)		482,978			599,486
Other receivables		26,633			27,414
Inventories		402,033			386,396
Deferred income taxes		44,220			41,646
Prepaid expenses and other current assets		26,017			21,819
Total current assets		1,078,699			1,152,359
Fixed assets, net		266,096			241,979
Intangibles, net		247,482			247,702
Goodwill		475,730			449,377
Other assets		45,464			43,955
Assets held for sale		18,944			23,229
Total assets	$	2,132,415		$	2,158,601
LIABILITIES & STOCKHOLDERS’ EQUITY
Current Liabilities:
Lines of credit	$	205,471		$	220,113
Accounts payable		197,193			212,407
Accrued liabilities		147,556			182,973
Current portion of long-term debt		16,267			50,833
Income taxes payable		¯			27,176
Total current liabilities		566,487			693,502
Long-term debt		684,800			640,348
Deferred income taxes		74,340			81,628
Total liabilities		1,325,627			1,415,478
Minority interest		10,353			10,241
Stockholders’ equity:
Preferred stock		¯			¯
Common stock		1,252			1,241
Additional paid-in capital		261,734			242,284
Treasury stock		(6,778	)		(6,778	)
Retained earnings		488,375			466,043
Accumulated other comprehensive income		51,852			30,092
Total stockholders’ equity		796,435			732,882
Total liabilities & stockholders’ equity	$	2,132,415		$	2,158,601

Quiksilver, Inc. 2006 Second Quarter Results
June 8, 2006
Page 7 of 7

Information related to geographic segments is as follows:

	Three Months Ended April 30,
In thousands	2006			2005
Revenues, net:
Americas	$	250,042		$	199,192
Europe		217,149			176,272
Asia/Pacific		48,247			50,331
Corporate operations		1,490			1,058
	$	516,928		$	426,853
Gross Profit:
Americas	$	103,166		$	76,697
Europe		108,512			90,595
Asia/Pacific		22,045			25,541
Corporate operations		767			532
	$	234,490		$	193,365
SG&A Expense:
Americas	$	81,509		$	53,272
Europe		96,162			56,891
Asia/Pacific		24,334			19,201
Corporate operations		13,833			9,950
	$	215,838		$	139,314
Operating Income:
Americas	$	21,657		$	23,425
Europe		12,350			33,704
Asia/Pacific		(2,289	)		6,340
Corporate operations		(13,066	)		(9,418	)
	$	18,652		$	54,051