BUSINESS: Financial SPY Reports Profitable Net Income Year for 2016, Cites Strong Start for 2017 By Staff Friday, March 17, 2017 12:23 AM CARLSBAD, Calif—For the first time in more than a decade, SPY achieved its highest operating income, first profitable net income year, lowest operating expenses as a percent of sales along with its highest gross profit percent and lowest level of debt in 2016, according to a statement from the company about its year-end results.SPY ended 2015 with an announcement that it was deregistering its shares of common stock as a way to help alleviate the significant costs that come with being a publicly traded company. A fiscal and physical restructuring in 2016 led to the elimination of longstanding debt and resulted in an operating profit (net income before interest) of $1.26 million, a gross margin increase of 3.8 percent year over year as well as an inventory level reduction of $1.97 million year over year and a net income at its highest since 2004, $804,000. The company said that aggressive enforcement of SPY’s MAP policy led to a considerable decrease in retail accounts that violated the company’s pricing policies. New programs were implemented to help prevent problem accounts from arising in the future. Additionally, to increase efficiencies, the company relocated to a new 47,000-square foot office space, adjoining a state of the art warehouse that includes upgraded machinery and improved hardware. “It’s been a busy few years at SPY,” Seth Hamot, SPY CEO said. “We’ve been focusing on creating awesome product and cultivating some incredible retail partnerships but haven’t been talking about ourselves. “The short story is that SPY is back and the best it’s been in a very long time. I’m excited to share with our supporters what’s coming up soon, and for those who have been sleeping on the brand for a while, I want to let them know it’s definitely time to take another look,” he said.