Orange 21 will purchase its Italian manufacturer, LEM S.r.l., subject to certain closing requirements. The deal, which is expected to close in December 2005, is expected to cost the company about two cents of dilution for the year. They also see a penny or two dilution from the costs of Oakley and Class Action law suits.
Those issues, which had previously been excluded from guidance, along with a reduction in second half sales, have caused the company to restate guidance to the lower end of its previous estimates. ORNG now expects diluted earnings per share in the range of 5 cents to 9 cents for 2005 on sales in the $41.5 million to $42.5 million range. Third quarter diluted EPS is now seen in the range of 2 cents to 3 cents per share on sales between $10.6 million and $10.8 million.
