Fox Factory Recalls Certain Model Year Suspension Forks

(RTTNews) - Fox Factory Holding Corp. (FOXF) said Tuesday that it has initiated a voluntary recall of certain model year 2013 32 and 34 Evolution Series suspension forks having 120mm -- 160mm of travel with certain open cartridge dampers manufactured by the Company between March 1, 2012 and November 30, 2012.

The recall involves about 40,000 units total worldwide, of which about 12,500 were sold in the U.S. and Canada.

The forks affected by this recall were assembled in the company's Watsonville California facility.

The company has determined that a small percentage of the forks manufactured during the period have the potential to fail under a specific set of circumstances.

The fork damper cylinder / piston assembly in some of these units may separate and allow the fork to over-extend under certain circumstances, possibly causing the front wheel to detach from the bicycle while in use, creating a fall hazard.

The company said it has received 1 report of an incident in which a broken damper may have caused the fork to over-extend and allow the front wheel to detach.

The recall does not involve any of the company's current model year 2014 suspension forks.

The company noted that it has initiated the recall to assure that consumers will obtain a free damper upgrade that will resolve the concern.

Based on the company's current estimates, the existing warranty reserve is anticipated to be adequate to cover the repair related costs FOX expects to incur as a result of the recall.

Additionally, the company said it expects that its third quarter fiscal 2013 financial results will be at the high end of its previously disclosed expected range of sales of $79 to $82 million for the quarter and of its previously disclosed earnings per share range of $0.23 to $0.27.

Analysts currently expect the company to earn $0.29 per share on revenue of $80.58 million for the third quarter.

For the full fiscal 2013 year, the company reaffirmed its prior guidance that it expects that its sales for 2013 will be in the range of $264 to $270 million and that its earnings per share for the year will be in the range of $0.61 to $0.67.

Analysts currently expect the company to earn $0.74 per share on revenue of $267.28 million for the full year 2013.