UPDATE 1-Parlux Q2 profit falls; sees closing new financing deal
* Q2 EPS $0.14 vs $0.17 yr ago
* Sees improved holiday season
* Says prudently optimistic on FY10 results
* Shares surge 17 pct in post-market trade
Nov 4 (Reuters) - Parlux Fragrances Inc (PARL.O) posted a lower quarterly profit, and said it expects an improved holiday season to help conclude a new financing arrangement.
Shares of company, which holds licenses for brands including Paris Hilton, Jessica Simpson and Guess, rose 17 percent in low volume trade after-market.
Parlux, which is transitioning out of its Guess business by the year end, said its recently launched Queen Latifah, Josie Natori and Marc Ecko brands will more than make up for the loss of its Guess business in fiscal 2011.
"We are projecting to be cash-flow positive through the balance of the year ending March 31, and remain prudently optimistic regarding profitable results for fiscal 2010," Chief Executive Neil Katz said in a statement.
For the second quarter ended Sept. 30, Parlux earned $3.0 million, or 14 cents a share, compared with $3.6 million, or 17 cents a share, a year earlier.
Last week, Parlux had said it was in full compliance with all covenants under a loan and security agreement with Regions Bank, and that the bank extended the forbearance period through Feb. 15, 2010. [ID:nWNAB7800]
Shares of the Fort Lauderdale, Florida-based company rose 32 cents to $2.25 in after-hours trade. They closed at $1.93 Wednesday on Nasdaq. (Reporting by Renju Jose in Bangalore; Editing by Pradeep Kurup)
