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):

December 14, 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 December 14, 2006 announcing its financial results for fiscal year 2006 and the quarter ended October 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 December 14, 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: December 14, 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 December 14, 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, Integrated Corporate Relations (203) 682-8200

— Quiksilver, Inc. Reports 2006 Fourth Quarter and Full Year Results —
— Quarterly Net Revenues Increase 22% to $778 million —
— Rossignol Drives Quarterly Net Income Per Share Increase of 89% to $0.51 —
— Fiscal Year Net Revenues Total $2.36 billion —
— Company Reiterates Fiscal 2007 Guidance —

Huntington Beach, California, December 14, 2006—Quiksilver, Inc. (NYSE: ZQK) today announced operating results for the fourth quarter and full year ended October 31, 2006. Consolidated net revenues for the fourth quarter of fiscal 2006 increased 22% to $778.4 million versus $637.4 million in the fourth quarter of fiscal 2005. Consolidated net income for the fourth quarter of fiscal 2006 increased 94% to $65.3 million from $33.6 million the year before. Fourth quarter fully diluted earnings per share increased 89% to $0.51 versus $0.27 for the fourth quarter of fiscal 2005. Consolidated net income for the fourth quarter of fiscal 2006 includes $3.3 million in stock compensation required to be expensed by current accounting standards. No stock compensation expense was recorded in the fourth quarter of fiscal 2005. Earnings per share on a fully diluted basis, excluding stock compensation expense and the related tax effect, was $0.54 for the fourth quarter of fiscal 2006. The $0.03 difference between $0.54 per share, excluding stock compensation expense, and actual earnings per share of $0.51 per share is determined by dividing $3.3 million, which is the tax-effected stock compensation expense, by 128.3 million weighted average common shares outstanding, assuming dilution.

Consolidated net revenues for the full year of fiscal 2006 increased 33% to $2.36 billion from $1.78 billion in fiscal 2005. Consolidated net income for fiscal 2006 includes $14.6 million in stock compensation expense required to be expensed by current accounting standards. No stock compensation expense was recorded in fiscal 2005. Net income for fiscal 2006 decreased 13% to $93.0 million from $107.1 million in fiscal 2005, and diluted net income per share for fiscal 2006 decreased 15% to $0.73 from $0.86 in fiscal 2005. In fiscal 2006, full year earnings per share on a fully diluted basis, excluding stock compensation expense and the related tax effect, were $0.84. The $0.11 difference between $0.84 per share, excluding stock compensation expense, and actual earnings per share of $0.73 is determined by dividing $14.6 million, which is the tax-effected stock compensation expense, by 127.7 million weighted average common shares outstanding, assuming dilution. The Company noted that consolidated fiscal 2005 historical results include the operations of its Rossignol business for three months of the winter season, since it was acquired as of July 31, 2005, the end of the Company’s third quarter, but do not include Rossignol’s business during the summer season prior to the acquisition when Rossignol has historically generated losses. As a result, consolidated operating results for fiscal 2006, which include Rossignol’s business for the full year, are not strictly comparable to fiscal 2005.

Robert B. McKnight, Jr., Chairman of the Board and Chief Executive Officer of Quiksilver, Inc., commented, “During fiscal 2006, with the Rossignol acquisition now firmly under our belt, we have recreated ourselves as a unified organization and have begun to fulfill our vision as the

Quiksilver, Inc. Fourth Quarter and Full Year 2006 Results
December 14, 2006
Page 2 of 8

world’s leading outdoor sports company. This compelling and expanded strategic position, the power of our portfolio of market leading brands, and the new scale of our business, particularly as it relates to the mountain lifestyle, will enable us to drive strong, long-term rates of sales and income growth.”

Bernard Mariette, President of Quiksilver, Inc., commented, “In every region around the globe and in every brand and business we operate, we have unprecedented growth opportunities. Our Quiksilver, Roxy, DC, and Rossignol businesses are all performing at a high level. Our ongoing focus on strong management, market-leading brands, great product, new market development, balanced distribution, and strategies for profitability enhancement will enable us to demonstrate the power of the operational platform which we have built.”

Net revenues in the Americas increased 14% during the fourth quarter of fiscal 2006 to $330.4 million from $288.9 million in the fourth quarter of fiscal 2005. As measured in U.S. dollars and reported in the financial statements, European net revenues increased 28% during the fourth quarter of fiscal 2006 to $345.8 million from $269.9 million in the fourth quarter of fiscal 2005. As measured in euros, European net revenues increased 23% for those same periods. As measured in U.S. dollars and reported in the financial statements, Asia/Pacific net revenues increased 30% to $100.3 million in the fourth quarter of fiscal 2006 from $77.0 million in the fourth quarter of fiscal 2005. As measured in Australian dollars, Asia/Pacific net revenues increased 31% for those same periods.

Net revenues in the Americas for the full year of fiscal 2006 increased 28% to $1,078.6 million from $843.7 million in fiscal 2005. As measured in U.S. dollars and reported in the financial statements, European net revenues increased 43% during the full year of fiscal 2006 to $1,015.1 million from $712.3 million in fiscal 2005. As measured in euros, European net revenues increased 45% for the year. As measured in U.S. dollars, Asia/Pacific net revenues increased 19% to $263.2 million from $220.9 million in fiscal 2005. As measured in Australian dollars, Asia/Pacific net revenues increased 22% for the year.

Consolidated inventories increased 10% to $425.9 million at October 31, 2006 from $386.4 million at October 31, 2005. Inventories grew 7% in constant dollars. Consolidated trade accounts receivable increased 20% to $721.6 million at October 31, 2006 from $599.5 million at October 31, 2005.

Mr. Mariette continued, “We will continue to execute over the short-term and look to capitalize on strong trends in the youth market and a variety of opportunities in new markets. At the same time, we are very excited to extend the reach and power of our brands for the long term. Most significantly, we are very excited to be launching our new Rossignol apparel range, which will leverage this incredible brand. Our global sourcing initiative, which will enhance the profitability of our company by fully leveraging our scale is also an important project for us in fiscal 2007. Also in the year ahead, we are particularly excited to be celebrating the 100-year anniversary of the Rossignol brand with a variety of events, marketing initiatives and special product ranges.”

Mr. McKnight concluded, “As a global leader with a highly diversified business model, we expect to see growth in every region of the world, across tiers of distribution, within a range of demographic customer groups, with a variety of brands for a wide range of specific outdoor lifestyles. The common thread for all of these initiatives is a passion, which is ingrained in our corporate culture, for the outdoors. We expect this position, a strong, capable operational platform and our dedication to grow our business to enable us to continue to prosper and to deliver excellent returns and significant shareholder value for many years to come.”

Quiksilver, Inc. Fourth Quarter and Full Year 2006 Results
December 14, 2006
Page 3 of 8

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 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 and other future 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 sections titled “Risk Factors” and “Forward-Looking Statements” in Quiksilver’s Annual Report on Form 10-K and Quarterly Reports on Form 10-Q.

* * * * *

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. Fourth Quarter and Full Year 2006 Results
December 14, 2006
Page 4 of 8

CONSOLIDATED STATEMENTS OF INCOME (Unaudited)

	Three Months Ended October 31,
In thousands, except per share amounts	2006		2005
Revenues, net	$	778,364	$	637,405
Cost of goods sold		428,640		350,067
Gross profit		349,724		287,338
Selling, general and administrative expense		241,642		224,956
Operating income		108,082		62,382
Interest expense		14,419		11,402
Foreign currency loss		1,105		107
Minority interest and other expense		360		640
Income before provision for income taxes		92,198		50,233
Provision for income taxes		26,850		16,629
Net income	$	65,348	$	33,604
Net income per share	$	0.53	$	0.28
Net income per share, assuming dilution	$	0.51	$	0.27
Weighted average common shares outstanding		122,566		121,130
Weighted average common shares outstanding, assuming dilution		128,314		126,103

Quiksilver, Inc. Fourth Quarter and Full Year 2006 Results
December 14, 2006
Page 5 of 8

CONSOLIDATED STATEMENTS OF INCOME (Unaudited)

	Fiscal Year Ended October 31,
In thousands, except per share amounts	2006		2005
Revenues, net	$	2,362,288	$	1,780,869
Cost of goods sold		1,280,738		972,345
Gross profit		1,081,550		808,524
Selling, general and administrative expense		897,628		627,342
Operating income		183,922		181,182
Interest expense		50,836		21,950
Foreign currency (gain) loss		489		(106	)
Minority interest and other expense		1,255		992
Income before provision for income taxes		131,342		158,346
Provision for income taxes		38,326		51,226
Net income	$	93,016	$	107,120
Net income per share	$	0.76	$	0.90
Net income per share, assuming dilution	$	0.73	$	0.86
Weighted average common shares outstanding		122,074		118,920
Weighted average common shares outstanding, assuming dilution		127,744		124,335

Quiksilver, Inc. Fourth Quarter and Full Year 2006 Results
December 14, 2006
Page 6 of 8

CONSOLIDATED BALANCE SHEET INFORMATION (Unaudited)

	October 31,
Amounts in thousands	2006		2005
Cash and cash equivalents	$	36,834	$	75,598
Trade accounts receivable, net		721,562		599,486
Inventories		425,864		386,396
Lines of credit and long-term debt		1,030,202		911,294

Quiksilver, Inc. Fourth Quarter and Full Year 2006 Results
December 14, 2006
Page 7 of 8

Information related to geographic segments is as follows:

	Three Months Ended October 31,
Amounts in thousands	2006			2005
Revenues, net:
Americas	$	330,438		$	288,950
Europe		345,834			269,875
Asia/Pacific		100,260			77,015
Corporate operations		1,832			1,565
	$	778,364		$	637,405
Gross Profit:
Americas	$	132,125		$	117,444
Europe		173,597			132,530
Asia/Pacific		43,312			37,577
Corporate operations		690			(213	)
	$	349,724		$	287,338
SG&A Expense:
Americas	$	91,773		$	87,144
Europe		109,674			96,999
Asia/Pacific		26,196			27,471
Corporate operations		13,999			13,342
	$	241,642		$	224,956
Operating Income:
Americas	$	40,352		$	30,300
Europe		63,923			35,531
Asia/Pacific		17,116			10,106
Corporate operations		(13,309	)		(13,555	)
	$	108,082		$	62,382

Quiksilver, Inc. Fourth Quarter and Full Year 2006 Results
December 14, 2006
Page 8 of 8

Information related to geographic segments (continued):

	Fiscal Year Ended October 31,
Amounts in thousands	2006			2005
Revenues, net:
Americas	$	1,078,611		$	843,677
Europe		1,015,133			712,310
Asia/Pacific		263,158			220,941
Corporate operations		5,386			3,941
	$	2,362,288		$	1,780,869
Gross Profit:
Americas	$	442,148		$	335,356
Europe		518,218			362,172
Asia/Pacific		118,866			109,698
Corporate operations		2,318			1,298
	$	1,081,550		$	808,524
SG&A Expense:
Americas	$	343,288		$	250,021
Europe		403,136			258,864
Asia/Pacific		97,072			80,098
Corporate operations		54,132			38,359
	$	897,628		$	627,342
Operating Income:
Americas	$	98,860		$	85,335
Europe		115,082			103,308
Asia/Pacific		21,794			29,600
Corporate operations		(51,814	)		(37,061	)
	$	183,922		$	181,182