Spy’s parent company, Orange 21 Inc., reported a 34.8% drop in consolidated net sales to $9.1 million for the second quarter of 2009 compared to net sales of $14.0 million during the same period in 2008.
Despite this drop, the company was able to reduce its net loss for the period by nearly 7% by reducing operating expenses significantly and focusing on gross margins.
According to the release:
The company incurred a net loss of $254,000 for the three months ended June 30, 2009, compared to a net loss of $273,000 for the three months ended June 30, 2008. The net loss for the three months ended June 30, 2009 included $129,000 in non-cash share-based compensation costs in accordance with FASB No. 123(R).
"The current recession continues to have a significant impact on our global sales," commented Stone Douglass, the company's CEO. "During the most recent quarter, we reduced total operating expenses by approximately $2.6 million from the same period last year, and although we have had a significant decrease in sales, we have continued to maintain relatively strong gross profit margins."
Jerry Collazo, the company's chief financial officer, added, "During this period we continued to work with our vendors and customers and fully appreciate the difficulty everyone is undergoing."
Concluding, Stone Douglass added, "We continue to experience a soft economy and as such we are operating cautiously and managing expenses appropriately. However, we are very excited about new opportunities that are unfolding for Orange 21 and its shareholders and are cautiously optimistic for the next several months."