THAT-A-WAY, CALLAWAY; FIRST QUARTER SALES BEAT EXPECTATIONS

          Callaway Golf's first-quarter sales "soared above" Wall
     Street's expectations, despite higher-than-expected
     production costs at its golf ball plant, according to Mike
     Freeman of the SAN DIEGO UNION-TRIBUNE.  Callaway reported
     sales of $206.6M for the quarter, an 11% increase from last
     year's first quarter and the highest first quarter figure in
     company history.  Earnings were up 26% to $16.2M, or $0.22
     per share, after estimates projected quarterly earnings of
     $0.12 per share.  But while golf club sales "soared,"
     Callaway's "much-ballyhooed" Rule 35 golf ball "remained
     entangled in the rough."  The company, which spent three
     years and $170M building its own golf ball plant, lost a
     "higher-than-expected" $14.6M on golf balls during the
     quarter (SAN DIEGO UNION-TRIBUNE, 4/27).