Orange 21, parent company to Spy Optics, reported that consolidated net sales for second quarter fiscal 2008 were $14.0 million, a 17% increase from reported net sales of $12.0 million for the same quarter in 2007. The increase is largely due to increased prices along with an improvement in product mix and product availability, the company said. An net loss of $0.3 million was incurred for the three months ended June 30, compared to a net loss of $1.6 million for the same period a year ago.
The companys consolidated gross profit decreased 2% to $6.9 million as compared to $7.1 million for the year ago period. Likewise, gross profits as a percentage of sales decreased to 50% from 59% in second quarter fiscal 2007. The decline was largely attributable to increased materials costs that were inflated due to increased fuel prices and an increase in Euro foreign exchange rates.
Sales and marketing expenses decreased 38% to $3.5 million for the second quarter from 5.6% million for the second quarter of fiscal 2007. The decline was primarily due to a $0.4 million decrease in depreciation expense and a $1.9 million write-off in June 2007 for point-of-purchase displays in the U.S.
“Although general economic conditions appear to have impacted our business, we believe that the strength of and demand for our brand will allow us to be successful,” said CEO and co-chairman Mark Simo.
