{"id":19597,"date":"2010-11-15T05:48:44","date_gmt":"2010-11-15T13:48:44","guid":{"rendered":"http:\/\/www.boardistan.com\/?p=19597"},"modified":"2010-11-15T08:56:06","modified_gmt":"2010-11-15T16:56:06","slug":"orange-21-sales-drop-six-percent","status":"publish","type":"post","link":"http:\/\/www.boardistan.com\/?p=19597","title":{"rendered":"Orange 21 Sales Drop Six Percent"},"content":{"rendered":"

\"Orange21Logo-1\"<\/a>One of the coldest Southern California summers on record apparently took it’s toll on Spy Eyewear<\/a><\/strong> parent Orange 21<\/a><\/strong>. The company said sales were down six percent to $8.2 million in the quarter ended September 30, 2010.<\/p>\n

“We experienced a challenging quarter given the lack of sun in Southern California this summer, which negatively affected our net sales,” commented Stone Douglass<\/strong>, the Company’s Chief Executive Officer. “Gross margins increased to 47% for the three months ended September 30, 2010 from 33% during the comparable period in 2009, aided by more effective sourcing in Asia as well as improved operations and a more favorable Euro to U.S. Dollar exchange rate on purchases from LEM, our manufacturing subsidiary in Italy.<\/p><\/blockquote>\n

Follow the jump for the rest all the details.
\nOrange 21 Inc. Reports Financial Results for the Three Months Ended September 30, 2010 and Announces Investor Conference Call<\/p>\n

CARLSBAD, CA, Nov 15, 2010 — Orange 21 Inc., a leading designer, producer and distributor of sunglasses, prescription eyewear, snow and motocross goggles, and branded apparel and accessories for the action sports, motorsports, snowsports and lifestyle markets, today announced financial results for the quarter ended September 30, 2010.<\/p>\n

Consolidated net sales decreased 6% to $8.2 million for the three months ended September 30, 2010 from $8.8 million for the three months ended September 30, 2009.<\/p>\n

Consolidated net loss decreased to $0.9 million for the three months ended September 30, 2010 from $1.1 million for the three months ended September 30, 2009. The three months ended September 30, 2010 included approximately $0.4 million in additional direct operating expenses related to the addition of the Margaritaville(TM) and Melodies by MJB(TM) eyewear brands for which there were minimal sales during the period. There were no such expenses during the comparable period in 2009.<\/p>\n

“We experienced a challenging quarter given the lack of sun in Southern California this summer, which negatively affected our net sales,” commented Stone Douglass, the Company’s Chief Executive Officer. “Gross margins increased to 47% for the three months ended September 30, 2010 from 33% during the comparable period in 2009, aided by more effective sourcing in Asia as well as improved operations and a more favorable Euro to U.S. Dollar exchange rate on purchases from LEM, our manufacturing subsidiary in Italy. We are especially pleased that these results were achieved even though we had substantial direct and indirect additional operating costs related to our two newest brands, Margaritaville(TM) and Melodies by MJB(TM), for which there have been minimal sales during this period. Our Melodies by MJB(TM) line began to sell in stores and online at www.melodiesbymjb.com during September and was promoted in cities that Mary J. Blige was touring. We expect our Margaritaville(TM) line to launch the later part of November in select stores and online at www.margaritavilleeyewear.com.”<\/p>\n

Investor Conference Call<\/p>\n

We invite you to join us for an investor conference call on Wednesday, November 17, 2010 at 1:30 p.m. Pacific Time. The dial-in number for the call in North America is 1-866-730-5770 and 1-857-350-1594 for international callers. The participant pass code is 60970034. The call will also be webcast live on the internet and can be accessed by logging onto www.orangetwentyone.com.<\/p>\n

The webcast will be archived on the Company’s website for at least 60 days following the call. An audio replay of the conference call will be available for seven days beginning approximately two hours after the completion of the call on November 17, 2010. The audio replay dial-in number for North America is 1-888-286-8010 and 1-617-801-6888 for international callers. The replay pass code is 27158016.<\/p>\n

About Orange 21 Inc.<\/p>\n

Orange 21 designs, develops, markets and produces premium products for the action sports, motorsports, snowsports and lifestyle markets under the brands Spy Optic(TM), O’Neill(TM), Margaritaville(TM) and Melodies by MJB(TM).<\/p>\n

Safe Harbor Statement<\/p>\n

This press release contains forward-looking statements. These statements relate to future events or future financial performance and are subject to risks and uncertainties. In some cases, you can identify forward-looking statements by terminology such as “may,” “will,” “should,” “expect,” “plan,” “anticipate,” “believe,” “feel,” “estimate,” “predict,” “potential” or “continue,” the negative of such terms or other comparable terminology. These statements are only predictions. Actual events or results may differ materially. Factors that could cause actual results to differ from those contained in the forward-looking statements include, but are not limited to: delays in the launch of the Margaritaville(TM) line in stores or online, the general conditions of the domestic and global economy, changes in consumer discretionary spending; changes in the value of the U.S. dollar, Canadian dollar and Euro; changes in commodity prices; our ability to source raw materials and finished products at favorable prices; risks related to the limited visibility of future orders; our ability to continue to develop, produce and introduce innovative new products in a timely manner; our ability to identify and execute successfully cost-control initiatives without adversely impacting sales; the performance of new products and continued acceptance of current products; our execution of strategic initiatives and alliances; uncertainties associated with intellectual property protection for our products; and other risks identified from time to time in our filings made with the U.S. Securities and Exchange Commission. Although, we believe that the expectations reflected in the forward-looking statements are reasonable, we cannot guarantee future results. Moreover, we assume no responsibility for the accuracy or completeness of such forward-looking statements and undertake no obligation to update any of these forward-looking statements.<\/p>\n

\n              ORANGE 21 INC. AND SUBSIDIARIES\n                CONSOLIDATED BALANCE SHEETS\n(Thousands, except number of shares and per share amounts)\n                                                September 30, December 31,\n                                                ------------  ------------\n                                                    2010          2009\n                                                ------------  ------------\n                                                (Unaudited)\n                        Assets\nCurrent assets\n Cash                                           $        710  $        654\n Accounts receivable, net                              5,051         5,886\n Inventories, net                                     10,935         7,759\n Prepaid expenses and other current assets               813         1,036\n Income taxes receivable                                   3            56\n                                                ------------  ------------\n   Total current assets                               17,512        15,391\nProperty and equipment, net                            4,206         4,892\nIntangible assets, net of accumulated\n amortization of $780 and $714 at September 30,\n 2010 and December 31, 2009, respectively                217           296\nOther long-term assets                                    78            92\n                                                ------------  ------------\n   Total assets                                 $     22,013  $     20,671\n                                                ============  ============\n           Liabilities and Stockholders' Equity\nCurrent liabilities\n Lines of credit                                $      2,626  $      3,750\n Current portion of capital leases                       423           395\n Current portion of notes payable                      3,800           723\n Accounts payable                                      6,055         5,431\n Accrued expenses and other liabilities                3,640         3,350\n Income taxes payable                                     65             -\n                                                ------------  ------------\n   Total current liabilities                          16,609        13,649\nCapitalized leases, less current portion                 592           812\nNotes payable, less current portion                      114           308\nDeferred income taxes                                    404           404\n                                                ------------  ------------\n Total liabilities                                    17,719        15,173\nStockholders' equity\n Preferred stock: par value $0.0001; 5,000,000\n  authorized; none issued                                  -             -\n Common stock: par value $0.0001; 100,000,000\n  shares authorized; 11,970,197 and 11,903,943\n  shares issued and outstanding at September 30,\n  2010 and December 31, 2009, respectively                 1             1\n Additional paid-in-capital                           40,856        40,515\n Accumulated other comprehensive income                  790           874\n Accumulated deficit                                 (37,353)      (35,892)\n                                                ------------  ------------\n   Total stockholders' equity                          4,294         5,498\n                                                ------------  ------------\n   Total liabilities and stockholders' equity   $     22,013  $     20,671\n                                                ============  ============\n                         ORANGE 21 INC. AND SUBSIDIARIES\n                      CONSOLIDATED STATEMENTS OF OPERATIONS\n                      (Thousands, except per share amounts)\n                                    Three Months Ended  Nine Months Ended\n                                       September 30,       September 30,\n                                    ------------------  ------------------\n                                      2010      2009      2010      2009\n                                    --------  --------  --------  --------\n                                        (Unaudited)         (Unaudited)\nNet sales                           $  8,224  $  8,776  $ 26,020  $ 25,313\nCost of sales                          4,353     5,915    12,918    14,635\n                                    --------  --------  --------  --------\n Gross profit                          3,871     2,861    13,102    10,678\nOperating expenses:\n Sales and marketing                   2,268     1,781     6,537     5,463\n General and administrative            1,812     1,655     5,667     5,838\n Shipping and warehousing                235       255       802       765\n Research and development                375       292     1,186       803\n                                    --------  --------  --------  --------\n   Total operating expenses            4,690     3,983    14,192    12,869\n                                    --------  --------  --------  --------\n Loss from operations                   (819)   (1,122)   (1,090)   (2,191)\nOther income (expense):\n Interest expense                       (160)      (70)     (397)     (235)\n Foreign currency transaction gain        85       110        76       293\n Other income (expense)                   20        (3)       84        (1)\n                                    --------  --------  --------  --------\n   Total other income (expense)          (55)       37      (237)       57\n                                    --------  --------  --------  --------\n Loss before provision for income\n  taxes                                 (874)   (1,085)   (1,327)   (2,134)\nIncome tax provision                      58        51       134        60\n                                    --------  --------  --------  --------\nNet loss                            $   (932) $ (1,136) $ (1,461) $ (2,194)\n                                    ========  ========  ========  ========\nNet loss per share of Common Stock\n   Basic                            $  (0.08) $  (0.10) $  (0.12) $  (0.19)\n                                    ========  ========  ========  ========\n   Diluted                          $  (0.08) $  (0.10) $  (0.12) $  (0.19)\n                                    ========  ========  ========  ========\nShares used in computing net loss\n per share of Common Stock\n   Basic                              11,961    11,865    11,948    11,291\n                                    ========  ========  ========  ========\n   Diluted                            11,961    11,865    11,948    11,291\n                                    ========  ========  ========  ========\n<\/pre>\n","protected":false},"excerpt":{"rendered":"
One of the coldest Southern California summers on record apparently took it’s toll on Spy Eyewear parent Orange 21. The company said sales were down six percent to $8.2 million in the quarter ended September 30, 2010. “We experienced a challenging quarter given the lack of sun in Southern California this summer, which negatively affected […]<\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"ngg_post_thumbnail":0,"footnotes":""},"categories":[10,12],"tags":[],"_links":{"self":[{"href":"http:\/\/www.boardistan.com\/index.php?rest_route=\/wp\/v2\/posts\/19597"}],"collection":[{"href":"http:\/\/www.boardistan.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"http:\/\/www.boardistan.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"http:\/\/www.boardistan.com\/index.php?rest_route=\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"http:\/\/www.boardistan.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=19597"}],"version-history":[{"count":1,"href":"http:\/\/www.boardistan.com\/index.php?rest_route=\/wp\/v2\/posts\/19597\/revisions"}],"predecessor-version":[{"id":19598,"href":"http:\/\/www.boardistan.com\/index.php?rest_route=\/wp\/v2\/posts\/19597\/revisions\/19598"}],"wp:attachment":[{"href":"http:\/\/www.boardistan.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=19597"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"http:\/\/www.boardistan.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=19597"},{"taxonomy":"post_tag","embeddable":true,"href":"http:\/\/www.boardistan.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=19597"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}