AZ-based Action Performance announced Friday that its
first-quarter earnings estimates will "fall short of
expectations because of further delays in starting a
promotional program," according to Peter Corbett of the
ARIZONA REPUBLIC. The company estimates that revenue for
the quarter ending December 31 will be $65-70M, "excluding
the effect of one-time charges" of $2M, and that earnings
per share of $.07-.10 will "fall short" of the $.23 forecast
by analysts. Action is also "indefinitely postponing" an
IPO of goracing.com, its Internet subsidiary (AZ REPUBLIC,
12/18). THE STREET.com's Herb Greenberg wrote that the IPO
of goracing was "considered a crucial part of the company's
story" (THE STREET.com, 12/17). The SPORTSBUSINESS JOURNAL's
Andy Bernstein reports that four senior Action execs "were
dismissed last week" with the earnings announcement. CMO
Howard Jacobs, VP/Corporate Communications Scott Williamson
and VP/Business Development Mike Bartelli were dismissed,
while the name of the fourth was "not available." CEO Fred
Wagenhals will "assume primary marketing responsibilities"
(SPORTSBUSINESS JOURNAL, 12/20 issue).
