Adams Golf Announces Results for First Quarter 2007

PLANO, Texas--(BUSINESS WIRE)--Adams Golf (OTCBB:ADGO) today reported record net sales of $27.8 million for the first quarter ended March 31, 2007 as compared to $22.3 million in the comparable period of 2006, a gain of 25% year over year. The Company’s $27.8MM in net sales for the first quarter represents its largest first quarter net sales figure since the Company went public in 1998. The Company reported net income of $3.8 million, or $0.12 fully diluted per share for the first quarter ended March 31, 2007, as compared to net income of $3.3 million, or $0.12 fully diluted per share for the comparable period of 2006.

“I’m very pleased with the company’s continued sales and earnings growth”

"I’m very pleased with the company’s continued sales and earnings growth," said Mr. Chip Brewer, CEO and President of Adams Golf. "Our growth continues to be driven by our Idea hybrid iron sets. Additionally, our individual hybrids have become the #1 hybrid played by professionals on the combined professional men’s tours (PGA, Champions and Nationwide) for the first quarter of 2007, according to results from the Darrell Survey. We continue to invest in our brand, our overall organization, particularly our R&D organization, and our positions on the competitive professional tours.”

Adams Golf will host a conference call at 4:30 p.m. Eastern time on Thursday, May 10th, 2007, with Chip Brewer, CEO and President, and Eric Logan, Chief Financial Officer, to review Adams' 2007 first quarter financial results. For telephone access to the conference call dial [phone] or [phone] for international calls, and request connection to the Adams Golf conference call. The conference ID # is 7329769.

This press release contains "forward-looking statements" made under the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995. The statements include, but are not limited to statements regarding our ability to continue manufacturing products that are commercially acceptable to consumers, statements which may imply past performance as an indicator of future trends, and statements using terminology such as "may," "will," "expect," "intend," "estimate," "anticipate," "plan," "seek" or "believe." Such statements reflect the current view of the Company with respect to future events and are subject to certain risks, uncertainties and assumptions related to certain factors including, without limitation, the following: risks relating to product development; risks that past performance may not be an accurate indicator of future trends; risks that products may not meet with approval and conform to governing body regulations; assembly difficulties; competing product introductions; patent infringement risks; uncertainty of the ability to protect intellectual property rights; market demand and acceptance of products; the impact of changing economic conditions; the success of our marketing strategy; our dependence on a limited number of customers and suppliers; business conditions in the golf industry; reliance on third parties, including suppliers; the actions of competitors, including pricing, advertising and product development risks concerning future technology; the management of sales channels and re-distribution; and one-time events and other factors detailed under "Risk Factors" in our Securities and Exchange Commission filings. These filing can be obtained by visiting the corporate governance section of our website at www.adamsgolf.com or by contacting Adams Golf Investor Relations at [e-mail].

Although the Company believes that the expectations reflected in such forward-looking statements are reasonable, it can give no assurance that such expectations will prove to be correct. Based upon changing conditions, should any one or more of these risks or uncertainties materialize, or should any underlying assumptions prove incorrect, actual results may vary materially from those described herein. Except as required by federal securities laws, Adams Golf undertakes no obligation to publicly update or revise any written or oral forward-looking statements, whether as a result of new information, future events, changed circumstances or any other reason after the date of this press release. All subsequent written and oral forward-looking statements attributable to the Company or persons acting on its behalf are expressly qualified in their entirety by the applicable cautionary statements.

ADAMS GOLF, INC. AND SUBSIDIARIES   CONDENSED CONSOLIDATED BALANCE SHEETS (in thousands, except share amounts)
ASSETS
	March 31, 2007	December 31, 2006
	(unaudited)
Current assets:
Cash and cash equivalents	$ 3,424	$ 9,472
Trade receivables, net of allowance for doubtful accounts of $706 (unaudited) and $702 in 2007 and 2006, respectively	27,029	13,553
Inventories, net	25,207	24,651
Prepaid expenses	924	686
Other current assets	1,367	1,371
Total current assets	57,951	49,733
Property and equipment, net	769	719
Deferred tax asset – non current	4,052	4,052
Other assets, net	1,542	1,099
	$ 64,314	$ 55,603
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable	$ 9,466	$ 6,271
Accrued expenses	8,896	7,463
Total liabilities	18,362	13,734
Stockholders' equity:
Preferred stock, $0.01 par value; authorized 5,000,000 shares; none issued	--	--
Common stock, $.001 par value; authorized 50,000,000 shares; 24,938,976 and 24,895,226 shares issued and 24,002,349 and 23,958,606 shares outstanding at March 31, 2007 (unaudited) and December 31, 2006, respectively	25	25
Additional paid-in capital	90,894	90,630
Accumulated other comprehensive income	952	887
Accumulated deficit	(42,393)	(46,147)
Treasury stock, 936,627 common shares, at cost, at March 31, 2007 (unaudited) and December 31, 2006	(3,526)	(3,526)
Total stockholders' equity	45,952	41,869
	$ 64,314	$ 55,603

ADAMS GOLF, INC. AND SUBSIDIARIES   CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (in thousands, except per share amounts) (unaudited)
	Three Months Ended
	March 31,
	2007	2006
Net sales	$ 27,808	$ 22,265
Cost of goods sold	15,613	11,813
Gross profit	12,195	10,452
Operating expenses:
Research and development expenses	810	610
Selling and marketing expenses	5,706	4,911
General and administrative expenses	1,915	1,672
Total operating expenses	8,431	7,193
Operating income	3,764	3,259
Other income (expense):
Interest income (expense), net	24	46
Other income (expense), net	13	46
Income before income taxes	3,801	3,351
Income tax expense	47	2
Net income	$ 3,754	$ 3,349
Net income per common share - basic	$ 0.16	$ 0.15
- diluted	$ 0.12	$ 0.12