Quiksilver Inc., COSTA MESA

Nature of Business: Designs, manufactures and distributes sportswear for men and boys.

Total Employees: 300

In Orange County: 250

Stock Listing in The Times: On NASDAQ as “Quikslv”

Ticker Symbol: “QUIK”

Friday’s Close: $7.38

One-Week Change: unchanged

Analyst Review: “They went public in December 1986 and grew from almost $20 million in sales for fiscal 1986 to nearly $100 million in sales for fiscal 1990. But 1991 was a tough year for them. Sales are up on a combined domestic and foreign basis, but there were some non-recurring charges that affected their earnings. Going forward in ’92 is simple: I think Quiksilver’s sales might be down in the first quarter, down to flat in the second, slightly up in the third, with a big improvement in the fourth. As ’93 opens, we will see a big increase in their business when they expand into the Midwest and open up the line for more mature men. That will happen in ‘92, but real benefits won’t be manifested until ’93. It’s a stairstep. The company grew in ’86 to ‘90, but in ’91 they were flat; ’92 will be a little flat, but by ’93 we look for sales to hit $150 million and $180 million by ’94. Margins could be close to 9% and stock could be trading in the mid $20s and probably even into the $30s by ’94. We’re recommending a buy.”

--Frank Podbelsek, analyst, Gruntal & Co. Inc., Los Angeles

SALES VS. PROFITS

Fiscal year ending Oct. 31 Oct. 31 Oct. 31 Oct. 31 Oct. 31 1987 1988 1989 1990 1991 Net Sales $30.1 $48.3 $70.7 $91.2 $97.1 Net Profit (Loss) $2.4 $3.8 $7.0 $9.5 $6.4

Corporate Outlook: “The Quiksilver label has a great amount of strength. We are positioned for diversification in 1992 in terms of the product lines and the different divisions we introduced in 1991. We are definitely international company, and that’s important for leading in the ‘90s. We have a very strong foothold in Europe, and South America is looking good. I think that is important in terms of product and our distribution.”

--Shaheen Sadeghi, president

5-YEAR SUMMARY

Fiscal year ending Oct. 31 Oct. 31 Oct. 31 Oct. 31 Oct. 31 1987* 1988 1989 1990 1991 52-Week High $10.58 $7.63 $25.63 $30.00 $15.25 52-Week Low $4.33 $3.38 $5.00 $9.63 $7.00 Book Value $1.81 $2.38 $3.35 $5.02 $6.33 Price Per Share $6.08 $6.25 $23.13 $12.25 $10.00 Net Earnings Per Share $0.41 $0.63 $1.11 $1.50 $1.02 Price-to-Earnings Ratio 23:1 10:1 22:1 8:1 10:1 Avg. Return to Investor 23% 27% 33% 30% 16%

Source: Quiksilver Inc.

For more information call or write, Quiksilver Inc.: 1740 Monrovia Ave., Costa Mesa, Calif., 92667. (714) 645-1395