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):
March 11, 2010

Quiksilver, Inc.

(Exact name of registrant as specified in its charter)

Delaware
(State or other jurisdiction of incorporation) 001-14229
(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

EX-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 March 11, 2010 announcing its financial results for the quarter ended January 31, 2010. 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 a pro forma consolidated loss from continuing operations and pro forma diluted earnings per share from continuing operations, each excluding severance charges, which are considered non-GAAP financial measures. Quiksilver believes that this non-GAAP information provides consistency and comparability with its past financial reports. 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 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 pro forma 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 March 11, 2010, issued by Quiksilver, Inc.

2

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: March 11, 2010	Quiksilver, Inc. (Registrant)
	By:	/s/ Joseph Scirocco
		Joseph Scirocco
		Chief Financial Officer

3

INDEX TO EXHIBITS

Exhibit No.	Exhibit Title or Description
99.1	Press Release, dated March 11, 2010, issued by Quiksilver, Inc.

4

EX-99.1

Exhibit 99.1

Company Contact:	Bruce Thomas
	Vice President, Investor Relations
	Quiksilver, Inc.
	+1 (714) 889-2200

Quiksilver, Inc. Reports Fiscal 2010 First Quarter Financial Results

— Net Revenues of $433 million versus $443 million in prior year

— Pro-Forma Loss from Continuing Operations of $0.02 per share versus Pro-Forma Loss of $0.07 per share in prior year

— Loss from Continuing Operations of $0.04 per share versus Loss of $0.52 per share in prior year

Huntington Beach, California, March 11, 2010—Quiksilver, Inc. (NYSE:ZQK) today announced operating results for the first quarter ended January 31, 2010. Consolidated net revenues from continuing operations for the first quarter of fiscal 2010 decreased 2% to $432.7 million from $443.3 million in the first quarter of fiscal 2009. The pro-forma consolidated loss from continuing operations for the first quarter of fiscal 2010 was $2.5 million, or $0.02 per share, compared to $9.0 million, or $0.07 per share, for the first quarter of fiscal 2009. The pro-forma loss for the first quarter of fiscal 2010 excludes a $3.0 million severance charge, primarily in the Americas. Including this charge, the loss from continuing operations was $5.4 million, or $0.04 per share, compared to $65.9 million, or $0.52 per share, for the first quarter of fiscal 2009. A reconciliation of GAAP results to pro-forma results is included in the accompanying tables. Net revenues and the loss from continuing operations for all periods exclude the results of the Rossignol wintersports business, which was sold in November 2008 and is reported as discontinued operations.

Robert B. McKnight, Jr., Chairman of the Board, Chief Executive Officer and President of Quiksilver, Inc., commented, “We’re pleased to deliver first quarter financial results that exceed our prior expectations. We have taken bold steps over the past several quarters to improve our operations and with continuing hopes for economic stabilization and improvement, we are poised to benefit from any upturn in discretionary consumer spending. While we recognize that U.S. retail trends in general are improving, it appears that the pace of global recovery will not be uniform. That being said, we are well-positioned to deliver improved financial performance in the future.”

Net revenues in the Americas decreased 8% during the first quarter of fiscal 2010 to $187.0 million from $203.4 million in the first quarter of fiscal 2009. As measured in U.S. dollars and reported in the financial statements, European net revenues decreased 2% during the first quarter of fiscal 2010 to $177.9 million from $181.7 million in the first quarter of fiscal 2009. In constant currency, European segment net revenues decreased 12% compared to the prior year. As measured in U.S. dollars and reported in the financial statements, Asia/Pacific net revenues increased 16% to $67.1 million in the first quarter of fiscal 2010 from $57.6 million in the first quarter of fiscal 2009. In constant currency, Asia/Pacific segment net revenues decreased 15% compared to the prior year. Please refer to the accompanying tables in order to better understand the impact of foreign currency on revenue trends in our Europe and Asia/Pacific segments.

Consolidated inventories decreased 21% to $301.2 million at January 31, 2010 from $380.5 million at January 31, 2009. Consolidated trade accounts receivable decreased 13% to $323.0 million at January 31, 2010 from $373.4 million at January 31, 2009.

Addressing its outlook for continuing operations, the Company stated that based on current trends, second quarter revenues are expected to be down in the high single-digits on a percentage basis compared to the same quarter a year ago and that it expects to generate earnings per share on a diluted basis in the low-single-digit range. The Company indicated

Quiksilver, Inc. 2010 First Quarter Results
March 11, 2010
Page 2 of 8

that longer term visibility into revenues and earnings remains somewhat limited at the present time.

The Company had approximately $148 million of availability under its credit lines in addition to approximately $150 million of unrestricted cash at the end of the first quarter.

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, footwear, accessories, snowboards 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.

The reputation of Quiksilver’s brands is based on outdoor action sports. The Company’s Quiksilver, Roxy, DC, Lib Tech 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 Company’s products are sold in over 90 countries in a wide range of distribution, including surf shops, skate shops, snow shops, its proprietary Boardriders Club shops and other company-owned retail stores, 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, 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 revenue guidance, diluted earnings per share guidance 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.dcshoes.com, www.lib-tech.com and www.hawkclothing.com.

Quiksilver, Inc. 2010 First Quarter Results
March 11, 2010
Page 3 of 8

CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited)

	Three Months Ended January 31,
In thousands, except per share amounts	2010			2009
Revenues, net	$	432,737		$	443,278
Cost of goods sold		210,588			236,115
Gross profit		222,149			207,163
Selling, general and administrative expense		203,160			206,818
Operating income		18,989			345
Interest expense		21,873			14,154
Foreign currency (gain) loss		(1,979	)		1,430
Other expense (income)		5			(574	)
Loss before provision for income taxes		(910	)		(14,665	)
Provision for income taxes		3,674			50,581
Loss from continuing operations		(4,584	)		(65,246	)
Income (loss) from discontinued operations		76			(128,564	)
Net loss		(4,508	)		(193,810	)
Less: net income attributable to non-controlling interest		(846	)		(616	)
Net loss attributable to Quiksilver, Inc.	$	(5,354	)	$	(194,426	)
Basic and diluted EPS:
Loss per share from continuing operations attributable to Quiksilver, Inc.	$	(0.04	)	$	(0.52	)
Income (loss) per share from discontinued operations attributable to Quiksilver Inc.	$	0.00		$	(1.01	)
Net loss per share attributable to Quiksilver, Inc.	$	(0.04	)	$	(1.53	)
Weighted average common shares outstanding		127,648			127,039
Amounts attributable to Quiksilver, Inc.:
Loss from continuing operations	$	(5,430	)	$	(65,862	)
Income (loss) from discontinued operations		76			(128,564	)
Net loss	$	(5,354	)	$	(194,426	)

Quiksilver, Inc. 2010 First Quarter Results
March 11, 2010
Page 4 of 8

CONSOLIDATED BALANCE SHEETS (Unaudited)

	January 31,			January 31,
In thousands	2010			2009
ASSETS
Current assets:
Cash and cash equivalents	$	149,561		$	42,089
Restricted cash		49,352			—
Trade accounts receivable, less allowance for doubtful accounts of $48,156 (2010) and $30,899 (2009)		322,959			373,357
Other receivables		28,832			65,650
Inventories		301,216			380,502
Deferred income taxes — short-term		63,220			88,284
Prepaid expenses and other current assets		40,698			37,337
Current assets held for sale		86			18,043
Total current assets		955,924			1,005,262
Restricted cash		—			45,824
Fixed assets, net		225,320			229,152
Intangibles, net		141,995			143,683
Goodwill		324,431			295,406
Other assets		76,017			39,844
Deferred income taxes — long-term		58,586			647
Total assets	$	1,782,273		$	1,759,818
LIABILITIES & STOCKHOLDERS’ EQUITY
Current liabilities:
Lines of credit	$	24,927		$	237,299
Accounts payable		203,232			252,557
Accrued liabilities		91,222			84,730
Current portion of long-term debt		93,314			33,051
Income taxes payable		14,202			3,763
Current liabilities of assets held for sale		324			3,925
Total current liabilities		427,221			615,325
Long-term debt		858,324			742,976
Other long-term liabilities		40,573			30,689
Total liabilities		1,326,118			1,388,990
Stockholders’ equity:
Common stock		1,318			1,310
Additional paid-in capital		370,878			337,870
Treasury stock		(6,778	)		(6,778	)
Accumulated deficit		(6,977	)		(4,007	)
Accumulated other comprehensive income		89,424			37,487
Total Quiksilver, Inc. stockholders’ equity		447,865			365,882
Non-controlling interest		8,290			4,946
Total stockholders’ equity		456,155			370,828
Total liabilities & stockholders’ equity	$	1,782,273		$	1,759,818

Quiksilver, Inc. 2010 First Quarter Results
March 11, 2010
Page 5 of 8

Information related to operating segments is as follows (unaudited):

	Three Months Ended January 31,
In thousands	2010			2009
Revenues, net:
Americas	$	186,961		$	203,413
Europe		177,877			181,698
Asia/Pacific		67,052			57,590
Corporate operations		847			577
	$	432,737		$	443,278
Gross Profit:
Americas	$	81,015		$	75,666
Europe		104,253			100,766
Asia/Pacific		37,043			30,701
Corporate operations		(162	)		30
	$	222,149		$	207,163
SG&A Expense:
Americas	$	76,361		$	92,006
Europe		85,804			78,765
Asia/Pacific		31,377			26,916
Corporate operations		9,618			9,131
	$	203,160		$	206,818
Operating Income (Loss):
Americas	$	4,654		$	(16,340	)
Europe		18,449			22,001
Asia/Pacific		5,666			3,785
Corporate operations		(9,780	)		(9,101	)
	$	18,989		$	345

Quiksilver, Inc. 2010 First Quarter Results
March 11, 2010
Page 6 of 8

GAAP TO PRO-FORMA RECONCILIATION (UNAUDITED)

	Three Months Ended
	January 31,
	2010			2009
Loss from continuing operations	$	(5,430	)	$	(65,862	)
Severance charges, net of tax of $87 (2010)		2,977			6,103
Effect of U.S. tax valuation allowance		—			50,778
Pro-forma loss from continuing operations	$	(2,453	)	$	(8,981	)
Pro-forma loss per share from continuing operations	$	(0.02	)	$	(0.07	)
Pro-forma loss per share from continuing operations, assuming dilution	$	(0.02	)	$	(0.07	)
Weighted average common shares outstanding		127,648			127,039
Weighted average common shares outstanding, assuming dilution		127,648			127,039

Quiksilver, Inc. 2010 First Quarter Results
March 11, 2010
Page 7 of 8

ADJUSTED EBITDA and PRO-FORMA ADJUSTED EBITDA RECONCILIATION

	Three Months Ended
	January 31,
	2010			2009
Loss from continuing operations	$	(5,430	)	$	(65,862	)
Provision for income taxes		3,674			50,581
Interest expense		21,873			14,154
Depreciation and amortization		13,570			13,303
Non-cash stock-based compensation expense		2,132			2,707
Adjusted EBITDA	$	35,819		$	14,883
Severance charges		3,064			6,103
Pro-forma Adjusted EBITDA	$	38,883		$	20,986

Definition of Adjusted EBITDA:

Adjusted EBITDA is defined as income from continuing operations before (i) interest expense, (ii) income tax expense, (iii) depreciation and amortization, (iv) non-cash stock-based compensation expense and (v) asset impairments. Adjusted EBITDA is not defined under generally accepted accounting principles (“GAAP”), and it may not be comparable to similarly titled measures reported by other companies. We use Adjusted EBITDA, along with other GAAP measures, as a measure of profitability because Adjusted EBITDA helps us to compare our performance on a consistent basis by removing from our operating results the impact of our capital structure, the effect of operating in different tax jurisdictions, the impact of our asset base, which can differ depending on the book value of assets, the accounting methods used to compute depreciation and amortization, the existence or timing of asset impairments and the effect of non-cash stock-based compensation expense. We believe EBITDA is useful to investors as it is a widely used measure of performance and the adjustments we make to EBITDA provide further clarity on our profitability. We remove the effect of non-cash stock-based compensation from our earnings which can vary based on share price, share price volatility and expected life of the equity instruments we grant. In addition, this stock-based compensation expense does not result in cash payments by us. We remove the effect of asset impairments from Adjusted EBITDA for the same reason that we remove depreciation and amortization as it is part of the impact of our asset base. Adjusted EBITDA has limitations as a profitability measure in that it does not include the interest expense on our debts, our provisions for income taxes, the effect of our expenditures for capital assets and certain intangible assets, the effect of non-cash stock-based compensation expense and the effect of asset impairments.

Quiksilver, Inc. 2010 First Quarter Results
March 11, 2010
Page 8 of 8

SUPPLEMENTAL EXCHANGE RATE INFORMATION
(UNAUDITED)

In order to better understand growth rates in our foreign operating segments, we make reference to constant currency. Constant currency reporting generally improves visibility into actual growth rates as it adjusts for the effect of changing foreign currency exchange rates from period to period. For income statement items, constant currency is calculated by taking the average foreign currency exchange rate used in translation for the current period and applying that same rate to the prior period. Our European segment is translated into constant currency using euros and our Asia/Pacific segment is translated into constant currency using Australian dollars, as these are the primary functional currencies of each reporting segment. As such, this methodology does not account for movements in individual currencies within an operating segment (for example, non-euro currencies within our European segment). A constant currency translation methodology that accounts for movements in each individual currency could yield a different result compared to using only euros and Australian dollars. The following table presents revenues by segment in both historical currency and constant currency for the three months ended January 31, 2009 and 2010:

	Americas			Europe			Asia/Pacific			Corporate		Total
Historical currency (as reported)
January 31, 2009		203,413			181,698			57,590			577		443,278
January 31, 2010		186,961			177,877			67,052			847		432,737
Percentage (decrease) increase		(8	%)		(2	%)		16	%				(2	%)
Constant currency (current year exchange rates)
January 31, 2009		203,413			201,230			78,431			577		483,651
January 31, 2010		186,961			177,877			67,052			847		432,737
Percentage decrease		(8	%)		(12	%)		(15	%)				(11	%)