CALLAWAY'S QUARTER REPORT SOLID, BUT TROUBLES ARE ALL BEHIND

          Callaway Golf reported "solid" second-quarter earnings
     Wednesday "despite lower overall sales in a tough golf-club
     market," according to Mike Freeman of the SAN DIEGO UNION-
     TRIBUNE.  The company had net income of $24.8M, up 17% from
     the $21.1M in the second quarter last year, but sales
     "slipped" to $229.7M, down from $233.3M last year.  Callaway
     CFO David Rane: "We are very pleased.  We started out the
     year trying to better manage our costs and our operations. 
     I think this quarter shows the results."  Analysts said
     "lower prices for golf clubs industrywide played a role in
     the sales decline."  S.F.-based Hambrecht & Quist analyst
     Shawn Milne: "It looks like a good current quarter."  But
     Callaway "warned analysts not to expect too much in the
     second half of the year," as the company "faces significant
     development costs" linked to its new golf ball, scheduled
     for a January debut (S.D. UNION-TRIBUNE, 7/29).