Callaway 1998 Annual Report Download - page 6

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BERTHA
GREAT BIGBERTHA
AWK YE
TITANIUM
CALLAWAY GOLF COMPANY
4
reasonably well on the road to a successful new era. Yes, there are many risks and uncertain-
ties still, and many things are beyond our control, such as the financial distress still affecting
some of our markets in Asia. However, since we went public in the first quarter of 1992
through December 31, 1997, your Company achieved 24 straight quarters of year over year
growth in revenue and net income. During that time annual revenue increased by 1,439%
and annual dollar profit increased by 1,968%. While we believe that our growth during the
next six years on top of our current base will not even closely match such impressively high
growth rates, this reminder of what we did achieve for six out of seven years gives us good
reasons for the confidence we now have as we look ahead.
■When Callaway Golf entered the golf club business in the early 1980’s, we were very fortu-
nate because there was no single competitor which had a dominant brand name, product line
and market position on woods and irons combined. Our growth and success since that time
have helped change the face of the industry. Today we have many great strengths that we are
confident we can capitalize upon. In addition, several of our large and small competitors are
stronger. Even so, we look forward to working hard and effectively as we strive to maintain
and enhance our position of leadership in product innovation and brand power.
■We believe golf is a game of integrity. Thus, when someone steals our intellectual property or
competes with us unfairly by using false advertising, we protect our legal rights. In this way
we protect ourselves, our customers, and you. Some of these actions have received a lot of
public attention, such as our lawsuit in 1998 against Spalding Sports Worldwide, and our
recent legal action against Orlimar Golf. I believe that protecting our legal rights has been,
and will remain, an important part of the way we do business.
■In late 1998 we launched the Big Bertha Steelhead line of stainless steel metal woods. In
January of 1999 we also launched the Great Big Bertha Hawk Eye line of titanium metal
woods. The Big Bertha Steelhead launch has already proven to be one of our most successful
product introductions, and early signs indicate the Great Big Bertha Hawk Eye woods are
being well received by retailers and consumers. Great products like these exceptional woods
are what this Company is all about – and that has not changed.
I hope that these thoughts are helpful to you as you think about our future together. Our direc-
tors, management, and employees look forward to seeing many of you at our Annual Meeting
on May 5.
Ely Callaway
Founder, Chairman and C.E.O.