Orange 21 Inc., the parent of Spy Optic, reported sales increased 2% to $35.0 million for the year ended Dec. 31, 2010 from $34.2 million a year ago. Its net loss in the year widened to $4.6 million from $3.4 million in 2009.
The year ended December 31, 2010 included (1) a $1.4 million loss on the
deconsolidation of LEM, its Italian manufacturer, as a result of the sale of 90% of its equity
interest in LEM on December 31, 2010 and (2) $1.2 million in additional
direct operating expenses related to the addition of the
Margaritaville and Melodies by MJB eyewear brands for which there
have been minimal sales during this period.
Consolidated gross profit increased 21% to $16.8 million for the latest year from $13.8 million a year ago.
“We are pleased with our results for 2010 even though we had substantial direct and indirect additional operating costs related to our two newest brands, Margaritaville and Melodies by MJB, for which there have been minimal sales during this period,” commented Stone Douglass, the company's chief executive officer. “Gross margins increased to 48% for the year ended December 31, 2010 from 40% during the comparable period in 2009, aided by more effective sourcing in Asia, and improved operations and a more favorable Euro to U.S. Dollar exchange rate on purchases from our Italian manufacturer, LEM.”
