Orange 21 announced selected un-audited financial results for the year ended December 31, 2004. The company expects to report net sales for 2004 of approximately $33.5 million, representing a 22% increase over the Company’s net sales of $27.4 million for 2003. For 2004, the company expects to report net income of approximately $800,000, a 60% increase over net income for 2003. These results are un-audited and remain subject to adjustments or changes that may be identified in connection with the Company’s audit.
Initial Outlook for 2005
At this time, the Company also issued initial 2005 financial guidance. On a full-year basis, the Company expects net sales for 2005 to increase by approximately 25% – 30%.
“We are very pleased with our year-end 2004 results, particularly as a new public company. The strong performance is a reflection of the continued execution of our focused strategy,” said Barry Buchholtz, CEO. “Due to Spy Optic’s strong growth opportunities in Europe, we have decided to expedite our investment in this marketplace. As a result, and as we outlined last month in our press release dated January 28, 2005, we have made the decision to transition to a dealer direct distribution program from a distributor program in Italy and France. Although this transition will involve upfront costs to the Company, we believe that it represents significant long-term strategic benefits to the Company and is necessary to achieve our growth plans for the European market.”
On a full-year basis for 2005, the Company expects earnings per share growth of approximately 70% to 90%. Historically, the Company has incurred a loss in Q1 due to lower revenue levels comparative to other quarters and due to front end loaded sales and marketing expenses. This has not changed and we would expect the same for this year.
