Spy Reports First Half and Q2 2014 Results

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CARLSBAD, Calif.— SPY Inc. (OTCBB: XSPY) has announced its financial results for the second quarter and first six months ended June 30, 2014.

Second quarter sales were $8.2 million in 2014, a decrease of 18 percent or $1.8 million less than in the second quarter of 2013. The company incurred a net loss of $0.7 million and $0.6 million during the second quarter of 2014 and 2013, respectively.

First half sales were $17.4 million in 2014, a decrease of 9 percent or $1.6 million less than in the first half of 2013. Sales included lower closeout sales of $0.8 million in 2014, compared to $1.4 million in 2013. The company incurred a net loss of $1.5 million and $1.3 million during the first half of 2014 and 2013, respectively.

“Although we encountered a challenging consumer environment in the first couple of months of the second quarter we were pleased with the top line improvements in June and especially with the increase in our gross margin rate to the highest level in the last four years,” said Michael Marckx, president and CEO.

“The margin expansion is a direct result of our strong product development team as well as a concerted effort across the organization to reduce operating costs. Achieving an operating profit along with our expanding portfolio of products, including our successful Happy Lens Collection, positions us well for the balance of 2014 as we focus on fulfilling strong pre-orders for snow goggles, driving overall sales, improving our product margins and managing our operating costs.”