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):

September 7, 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 (see General Instruction A.2. below):

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 September 7, 2006 announcing its financial results for the quarter ended July 31, 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 September 7, 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.

Dated: September 7, 2006	Quiksilver, Inc. (Registrant)
	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 September 7, 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 Third Quarter Financial Results —
— Third Quarter Net Revenues Increase 41% to $525.9 million —
— Earnings Per Share was $0.04, In Line With Guidance —
— Company Revises Fourth Quarter Guidance and Initiates FY07 Guidance —

Huntington Beach, California, September 7, 2006—Quiksilver, Inc. (NYSE: ZQK) today announced operating results for the third quarter ended July 31, 2006. Consolidated net revenues for the third quarter of fiscal 2006 increased 41% to $525.9 million from $373.8 million in the third quarter of fiscal 2005. Consolidated net income for the third quarter of fiscal 2006 was $5.3 million compared to $24.6 million the year before. The Company’s fiscal 2006 quarterly results include Rossignol and Cleveland Golf, which were acquired at the end of 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 third quarter of fiscal 2006 includes $3.5 million in stock compensation required to be expensed by current accounting standards. No stock compensation expense was recorded in the third quarter of fiscal 2005. Third quarter fully diluted earnings per share was $0.04 versus $0.20 for the third quarter of fiscal 2005. Earnings per share on a fully diluted basis, excluding stock compensation expense and the related tax effect, was $0.07 for the third quarter of fiscal 2006, in line with the Company’s previous guidance. The $0.03 difference between $0.07 per share, excluding stock compensation expense, and actual earnings per share of $0.04 per share is determined by dividing $3.5 million, which is the tax-effected stock compensation expense, by 127.7 million weighted average common shares outstanding, assuming dilution.

Net revenues from the company’s newly acquired Rossignol and Cleveland Golf businesses totaled $76.8 million during the third quarter ended July 31, 2006.

Robert B. McKnight, Jr., Chairman of the Board and Chief Executive Officer of Quiksilver, Inc., commented, “During the third quarter, we continued to execute at a high level. Our core business, which was strong across the board, drove our solid results. While we have some interim issues in the golf market which will have a moderate impact on our fourth quarter expectations, we are encouraged with the ongoing momentum in our core business and remain enthusiastic about our future prospects.”

Net revenues in the Americas increased 41% during the third quarter of fiscal 2006 to $277.4 million from $196.3 million in the third quarter of fiscal 2005. As measured in U.S. dollars and reported in the financial statements, European net revenues increased 43% during the third quarter of fiscal 2006 to $191.0 million from $133.6 million in the third quarter of fiscal 2005. As measured in euros, European net revenues increased 38% for those same periods. Asia/Pacific

Quiksilver, Inc. Third Quarter 2006 Results
September 7, 2006
Page 2 of 7

net revenues increased 31% to $56.3 million in the third quarter of fiscal 2006 from $43.1 million in the third quarter of fiscal 2005. As measured in Australian dollars, Asia/Pacific net revenues increased 32% for those same periods.

Consolidated inventories increased 18% to $516.4 million at July 31, 2006 from $438.3 million at July 31, 2005. Inventories grew 14% in constant dollars. Consolidated trade accounts receivable increased 15% to $492.4 million at July 31, 2006 from $428.3 million at July 31, 2005.

Bernard Mariette, President of Quiksilver, Inc., commented, “We were pleased to once again meet our expectations for the third quarter. There is no question, particularly within our core base of accounts, that our brands continue to be among the most powerful in their respective markets. Our board sports brands had one of the best summer seasons in the history of our company. Quiksilver, Roxy, and DC Shoes all performed very well, demonstrating strength in nearly every product category. At the same time, we remain excited to leverage Rossignol to both reinforce its core ski position and to translate the worldwide strength of its brand into a full collection of outdoor lifestyle products.”

Mr. Mariette continued, “The diversification of our business—by brand, channel, gender and category—coupled with a world class team of talented people, continues to drive our success both here and abroad. Our management team is energized to take the next steps for both the continued growth of our long-standing brands and territories as well as for the push into new businesses, new products, and new markets. We are dedicated to achieving our vision of becoming the dominant outdoor lifestyle company and are advancing our leadership position each and every day.”

The Company has revised its fourth quarter fiscal 2006 guidance and initiated fiscal 2007 guidance. Due to softness in the golf market, the Company now expects fiscal 2006 fourth quarter diluted earnings per share to be approximately $0.53, before stock compensation expense and the related tax effect, or $0.51 including stock compensation expense. For fiscal 2006, the Company expects to report diluted earnings per share of approximately $0.84, before stock compensation expense and the related tax effect, or $0.73, including stock compensation expense. Revenue expectations were also updated to reflect current foreign currency exchange rates and strength in the Company’s business in the Americas. For the fourth quarter of fiscal 2006, revenues are now expected to range from $745 million to $750 million, which would result in full year fiscal 2006 revenues approximating $2.33 billion. For fiscal 2007, the Company’s initial guidance is for revenues of approximately $2.5 billion and diluted earnings per share, including stock compensation expense and the related tax effect, ranging from $0.88 to $0.92, which represents earnings per share growth ranging from 21% to 26%.

Mr. McKnight concluded, “We recently returned from trade shows both in the U.S. and Europe, and the response from retailers continues to be extremely positive. We have always been focused on product and innovation, and with each passing season we are creating newness and excitement which allows us to further our unique connection with our customers around the world.”

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.

Quiksilver, Inc. Third Quarter 2006 Results
September 7, 2006
Page 3 of 7

The reputation of Quiksilver Inc.’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.

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, 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 St. Jean de Moirans, 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. Third Quarter 2006 Results
September 7, 2006
Page 4 of 7

CONSOLIDATED STATEMENTS OF INCOME (Unaudited)

	Three Months Ended July 31,
In thousands, except per share amounts	2006		2005
Revenues, net	$	525,854	$	373,751
Cost of goods sold		277,079		198,836
Gross profit		248,775		174,915
Selling, general and administrative expense		228,843		133,589
Operating income		19,932		41,326
Interest expense		11,877		5,490
Foreign currency loss (gain)		377		(388	)
Minority interest and other expense		484		207
Income before provision for income taxes		7,194		36,017
Provision for income taxes		1,858		11,382
Net income	$	5,336	$	24,635
Net income per share	$	0.04	$	0.21
Net income per share, assuming dilution	$	0.04	$	0.20
Weighted average common shares outstanding		122,341		118,764
Weighted average common shares outstanding, assuming dilution		127,737		124,308

Quiksilver, Inc. Third Quarter 2006 Results
September 7, 2006
Page 5 of 7

CONSOLIDATED STATEMENTS OF INCOME (Unaudited)

	Nine Months Ended July 31,
In thousands, except per share amounts	2006			2005
Revenues, net	$	1,583,924		$	1,143,464
Cost of goods sold		852,098			622,278
Gross profit		731,826			521,186
Selling, general and administrative expense		655,986			402,386
Operating income		75,840			118,800
Interest expense		36,417			10,548
Foreign currency gain		(616	)		(213	)
Minority interest and other expense		895			352
Income before provision for income taxes		39,144			108,113
Provision for income taxes		11,476			34,597
Net income	$	27,668		$	73,516
Net income per share	$	0.23		$	0.62
Net income per share, assuming dilution	$	0.22		$	0.59
Weighted average common shares outstanding		121,928			118,175
Weighted average common shares outstanding, assuming dilution		127,564			123,729

Quiksilver, Inc. Third Quarter 2006 Results
September 7, 2006
Page 6 of 7

CONSOLIDATED BALANCE SHEETS (Unaudited)

	July 31,			October 31,
Amounts in thousands	2006			2005
ASSETS
Current assets:
Cash and cash equivalents	$	84,342		$	75,598
Trade accounts receivable, less allowance for doubtful accounts of $30,319 (2006) and $10,727 (2005)		492,414			599,486
Other receivables		32,400			27,414
Income tax receivable		5,253			¯
Inventories		516,366			386,396
Deferred income taxes		46,859			41,646
Prepaid expenses and other current assets		27,991			21,819
Total current assets		1,205,625			1,152,359
Fixed assets, net		264,585			241,979
Intangibles, net		247,263			247,702
Goodwill		525,846			449,377
Other assets		51,326			43,955
Assets held for sale		23,311			23,229
Total assets	$	2,317,956		$	2,158,601
LIABILITIES & STOCKHOLDERS’ EQUITY
Current Liabilities:
Lines of credit	$	278,261		$	220,113
Accounts payable		242,309			212,407
Accrued liabilities		195,797			182,973
Current portion of long-term debt		22,728			50,833
Income taxes payable		¯			27,176
Total current liabilities		739,095			693,502
Long-term debt		681,248			640,348
Deferred income taxes		73,886			81,628
Total liabilities		1,494,229			1,415,478
Minority interest		10,935			10,241
Stockholders’ equity:
Common stock		1,254			1,241
Additional paid-in capital		268,382			242,284
Treasury stock		(6,778	)		(6,778	)
Retained earnings		493,711			466,043
Accumulated other comprehensive income		56,223			30,092
Total stockholders’ equity		812,792			732,882
Total liabilities & stockholders’ equity	$	2,317,956		$	2,158,601

Quiksilver, Inc. Third Quarter 2006 Results
September 7, 2006
Page 7 of 7

Information related to segments is as follows:

	Three Months Ended July 31,
Amounts in thousands	2006			2005
Revenues, net:
Americas	$	277,413		$	196,261
Europe		190,998			133,573
Asia/Pacific		56,309			43,145
Corporate operations		1,134			772
	$	525,854		$	373,751
Gross Profit:
Americas	$	119,075		$	78,791
Europe		101,401			73,419
Asia/Pacific		27,697			22,298
Corporate operations		602			407
	$	248,775		$	174,915
SG&A Expense:
Americas	$	86,187		$	55,872
Europe		105,845			54,323
Asia/Pacific		23,698			16,499
Corporate operations		13,113			6,895
	$	228,843		$	133,589
Operating Income:
Americas	$	32,888		$	22,919
Europe		(4,444	)		19,096
Asia/Pacific		3,999			5,799
Corporate operations		(12,511	)		(6,488	)
	$	19,932		$	41,326