Spy Makes Senior Executive Changes, Releases Q2 and YTD Results

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CARLSBAD, Calif.— Spy Inc. (OTCBB: XSPY) has announced that Jim McGinty will assume the role of chief financial officer, effective Aug. 19, and David Rane will join the company's board of directors on Aug. 22. Additionally, the company released their financial results for the three and six months ended June 30, 2013.

“Jim brings an incredible retail background and enthusiasm to the role of CFO, and I’m very happy to have him join our team for the next phase of our growth plan,” said Michael Marckx, president and CEO of Spy. “I am particularly appreciative of the ongoing support we have received from Michael Angel, our former CFO, who has been a key player in our turnaround story. He has been working diligently with me as interim CFO since his resignation was announced in May.”

McGinty has experience in the retail sector, having worked for Victoria's Secret, Structure and Express, divisions of Limited, Inc. Most recently, and for the last 13 years, McGinty was CFO at Hot Topic, Inc., a publicly traded teen specialty retailer.

On the addition of Rane to the board, Seth Hamot, Spy Inc. chairman of the board stated, “The addition of David and his invaluable experience to the board of directors is a great complement to the budding Spy brand. David brings a wealth of knowledge in branded consumer products and growth companies.”

Rane’s career spans 30 years in senior financial roles in the hard goods and technology industries, as well as the investment management sector, all at publicly traded companies. He began his financial career with 15 years as CPA for PricewaterhouseCoopers. Then at Callaway Golf, Rane served as executive vice president and CFO during a period of significant growth for the company. Immediately prior to joining Spy, Rane served on the board of directors and as audit committee chairman of Telanetix, Inc. (TNIX) since 2007. He will continue to consult companies on financial management and financing.

In other news, Spy Inc. also announced their financial results for the three and six months ended June 30, 2013. Second quarter sales of Spy brand products were $10.0 million in 2013, an increase of 7 percent from the second quarter of 2012. Net sales increased by 6 percent to $10.0 million compared to $9.5 million in the second quarter of 2012. There were no licensed brand sales in the second quarter of 2013, compared with $0.1 million in the second quarter of 2012. The net loss improved by $1.1 million to $0.6 million in the second quarter of 2013, compared to a net loss of $1.6 million in the second quarter of 2012.

“We are really happy to have achieved our ninth consecutive quarter of year over year growth of Spy brand products, with strong Spy brand sales growth,” added Marckx. “Moving forward, our Happy Lens Collection is expanding to include a growing list of new styles and will be featured in our Rx, Performance and Goggle Collections, which will further leverage this innovation in many ways.”

First half sales of Spy brand products were $19.0 million in 2013, an increase of 10 percent or $1.8 million greater than in the first half of 2012. Net sales increased by 8 percent or $1.4 million, to $19.0 million in the first half of 2013, compared to $17.6 million in the first half of 2012. According to the company, the difference between Spy brand sales and total company sales in 2012 was due to the discontinued licensed brand products, which will have no sales in the future. Discontinued licensed brand sales were less than $50,000 in the first half of 2013, compared with sales of $0.4 million in the first half of 2012. The net loss improved by $2.9 million to $1.3 million in the first half, compared to a net loss of $4.2 million in the first half of 2012.