Execute Sports, Inc., owner of the Kampus Wakeskate and Academy Snowboard brands, saw effectively flat revenue growth during fiscal 2005, which was not enough to compensate for large increases in operating costs, resulting in a net loss for the year. During the twelve months ended December 31, 2005 the company reported revenue of $1.389 million, up from $1.384 million for the prior year. The company attributed the small increase in net sales to the addition of distribution for motorcycle products in Sweden and Australia and for water sports products in Japan.

Gross profit for the year was 24% of sales, up 600 basis points from 18% last year, but SG&A expenses skyrocketed to $3.8 million, from $630 thousand last year. Management attributed the SG&A expense jump to an increase in stock based compensation for professional services, founders, and key employees, as well as increasing demand for the company's products and entrance into new product lines.

All told, the company posted a net loss of $3.6 million dollars for the year, expanding from a loss of $0.5 million in 2004.

But all is not bad news for Execute Sports as the company’s Academy and Kampus brands both appear to be doing quite well. During the past few weeks, Execute filed for a patent on the draining technology used in its Kampus shoes; saw Academy’s sales more than double in Japan; and, since the start of the year, Academy’s sales are up approximately 87%, with a same-store sales increase of 191%. The Academy brand has also grown its domestic footprint by 78% for the year-to-date period.