CARLSBAD —— Callaway Golf Co. reported a net loss of $28.5 million, or 42 cents per share, for the quarter ended Dec. 31. In the same quarter a year earlier, Callaway reported losing $33.4 million, or 50 cents per share.

The quarterly loss included charges of $3.2 million, or 5 cents per share, related to the purchase of Top-Flite in late 2003. The year-ago quarter included charges of $16.2 million, or 24 cents per share.

"Our fourth-quarter results reflect the pricing initiatives taken midyear, to reduce inventory levels at retail prior to the start of 2005," William C. Baker, Callaway's chairman and chief executive, said in a statement.

Callaway had long been among the most prestigious names in golf equipment makers and has charged accordingly. However, industry analysts have said that increased competition has reduced the premium Callaway can charge for its products.

Callaway stock closed Thursday before the announcement at $12.31, down 50 cents for the day.

For the year ended Dec. 31, Callaway reported losing $10 million, or 15 cents per share, on sales of $934.6 million. The loss included charges of $17.5 million, or 26 cents per share, related to the Top-Flite purchase.