Orange 21 Inc., which owns Spy Optic, reported sales rose 2% to $47.3 million in 2008 from $46.5 million for 2007. The action sports company incurred a net loss of $15.2 million for the year ended Dec. 31 compared to a net loss of $8.0 million for the year ended Dec. 1, 2007.
The 2008 net loss included non-cash charges of $8.4 million for goodwill impairment related to the acquisition of LEM S.r.l. (the comapnys primary sunglass manufacturer acquired in 2006), $3.5 million increase in income tax valuation allowance, and $0.6 million in share-based compensation costs.
The company said in a release that in comparison to the prior year it had reduced total operating expenses by approximately $4.1 million, excluding the $8.4 million non-cash goodwill impairment charge. For 2009, they said they have continued to reduce expenses further to offset the significant impact of the economy.
