Orange 21 Inc. warned of its results for the year ended December 31, 2005, and gave a preliminary outlook for 2006. The company anticipates revenues for 2005 to be approximately $39 million, an increase of approximately 16% from 2004, and expects to report a net loss of approximately $1.2-$1.7 million or 15-21 cents per fully diluted share.
The shortfall in revenues from previous guidance is due to several factors, including late product shipments in the fourth quarter, the transition of its distribution arrangements in Australia, late deployment of point-of-purchase displays and lower than expected sales in the E Eyewear product line, as well as slightly lower than expected demand in certain products.
For 2006, Orange 21 expects modest revenue growth and an improvement in operating results. For the first quarter of 2006, Orange 21 expects revenue and operating results to be down compared to the first quarter of 2005.
