Orange 21
Inc., the parent of Spy Optic, reported sales in the first quarter fell 36.2%
to $7.4 million from $11.6 million. The loss in the period of $804,000, or 8
cents a share, was slightly less than the deficit of $851,000, or 10 cents, a
year ago.

 

The net
loss in the latest quarter included $130,000 in non-cash share-based
compensation costs in accordance with FASB No. 123.

 

“As
stated last month, the current recession continues to have a significant impact
on our global sales,” commented Stone Douglass, the company’s chief executive officer.
“During the first three months of 2009 compared to the first three months of
2008, we have reduced total operating expenses by approximately $1.8 million.
In addition, we have been seeking new opportunities on a global basis.”

 

Jerry
Collazo, the company’s chief financial officer, added, “During this period we
have worked together with our vendors and customers and fully appreciate the
difficulty everyone is undergoing and we believe that these efforts will
enhance business relationships.”

 

Concluding,
Douglass added, “We continue to experience a soft economy and as such we are
operating cautiously and managing expenses appropriately, but we are very
excited about new opportunities that are unfolding for Orange 21 and its shareholders.”






 

 

ORANGE 21 INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF OPERATIONS

(Thousands, except per share amounts)



 


 
Three Months Ended March 31,


2009
 
 2008


(Unaudited)

Net sales

$
7,421


$
11,554

Cost of sales

 
3,790
 

 
6,110
 

Gross profit


3,631



5,444

Operating expenses:




Sales and marketing


1,764



2,952

General and administrative


2,147



2,462

Shipping and warehousing


271



507

Research and development

 
225
 

 
290
 

Total operating expenses

 
4,407
 

 
6,211
 

Loss from operations


(776
)


(767
)

Other income (expense):




Interest expense


(92
)


(178
)

Foreign currency transaction gain (loss)


61



(205
)

Other income (expense)

 
(17
)

 
30
 

Total other expense

 
(48
)

 
(353
)

Loss before benefit for income taxes


(824
)


(1,120
)

Income tax benefit

 
(20
)

 
(269
)

Net loss

$
(804
)

$
(851
)

Net loss per share of Common Stock

 

 

Basic

$
(0.08
)

$
(0.10
)

Diluted

$
(0.08
)

$
(0.10
)

Shares used in computing net loss per share of Common Stock


Basic

 
10,144
 

 
8,164
 

Diluted

 
10,144
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