RACINE, Wis.–Johnson Outdoors Inc. (Nasdaq: JOUT), a global leader in innovative outdoor recreational products, today announced the Company has reached a settlement agreement with Confluence Holdings Corp. that will end a long-standing intellectual property dispute between the two companies. While the terms of the agreement are confidential, the settlement does not constitute an admission of wrongdoing by either party and includes a one-time payment by Johnson Outdoors of $4.4 million which is expected to have an unfavorable impact on earnings in the third fiscal quarter. The Company is scheduled to report Fiscal 2007 third quarter results on Thursday, July 26th at 11:00 a.m. Eastern Time.
“After weighing the costs, risks and business distractions associated with continued litigation of this matter against the potential benefit, it became clear that it was in the financial best interests of the Company and its shareholders to settle and move on,” said David W. Johnson, Vice President and Chief Financial Officer.
As reported in the Company’s 10K, the Company is subject to various legal actions and proceedings, and is insured against loss for certain of these matters. The Company has made a claim for this matter, and at this time does not expect resolution in Fiscal 2007.
ABOUT JOHNSON OUTDOORS INC.
Johnson Outdoors is a leading global outdoor recreation company that turns ideas into adventure with innovative, top-quality products. The company designs, manufactures and markets a portfolio of winning, consumer-preferred brands across four categories: Watercraft, Marine Electronics, Diving and Outdoor Equipment. Johnson Outdoors’ familiar brands include, among others: Old Town® canoes and kayaks; Ocean Kayak™ and Necky® kayaks; Lendal™ paddles; Escape® electric boats; Minn Kota® motors; Cannon® downriggers; Humminbird® and Fishin’ Buddy® fishfinders; SCUBAPRO®, UWATEC® and Seemann Sub™ dive equipment; Silva® compasses and digital instruments; and Eureka!® tents.
Visit Johnson Outdoors at http://www.johnsonoutdoors.com