Callaway Golf's ( ELY) second-quarter earnings slid 59% from a year ago as the cost of a business integration and higher selling expenses offset a 23% rise in revenue. The golf-equipment maker earned $13.7 million, or 20 cents a share, in the three months to June 30, down from $34.1 million, or 52 cents a share, a year ago. Revenue was $297.9 million in the 2004 quarter compared with $242.1 million a year ago. Excluding a charge of $6.7 million, or 10 cents a share, related to the integration of golf ball maker Top-Flite, Callaway earned $20.4 million, or 30 cents a share, in the quarter, easily surpassing the Thomson First Call consensus of 22 cents a share. The company said the earnings beat was the result of expenses that were delayed into later quarters. Analysts had been expecting revenue of $288.9 million in the latest quarter. For the third quarter, Callaway expects to lose 37 cents to 42 cents a share on revenue of $150 million to $160 million. Analysts had been expecting a loss of 11 cents a share on sales of $195.6 million. For the full year, Callaway expects to earn 15 cents to 25 cents a share on a 25-cent integration charge, with revenue coming in at $975 million to $990 million. Analysts were forecasting 46 cents a share on earnings of $981 million.