Orange 21 Inc.'s net sales for the third quarter climbed 8.4% to $10.8 million compared to $10.0 million in 2004, but net income for the quarter fell to $192,000, compared to net income of $517,000 in 2004. Earnings per diluted share were two cents compared to 10 cents per share a year ago. Previously, Orange 21 estimated Q3 revenue in the range of $10.6 million to $10.8 million and fully diluted EPS in the range of two cents to three cents.
Results were adversely impacted by delays in manufacturing, lower than expected sales in the E Eyewear product line, changes to several international distributors, and continued weakness in the U.S. dollar.
ORNG is maintaining its 2005 annual revenue guidance of $41.5 to $42.5 million and fully diluted earnings per share in the range of five cents to nine cents. The guidance includes an estimated two cents of dilution from the acquisition of its manufacturer, LEM, and one to two cents reduction attributable to the costs of the Oakley and Class Action law suits.
