Spy Reports Q3 and YTD Financial Results

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CARLSBAD, Calif.— SPY Inc. (OTCBB: XSPY) have released their financial results for the three and nine months ended Sept. 30, 2013.

"We are very happy to have achieved our 10th consecutive quarter of year-over-year growth of Spy brand products, with strong Spy brand year to date sales growth of 8 percent in 2013 over the same period in 2012, and year to date sales in 2013 were 19 percent higher than the same period in 2011," said Michael Marckx, president and CEO. "In addition to the expanding Happy Lens Collection, we are pleased with the year to date growth of our Rx and goggle product lines that grew by 110 percent and 13 percent, respectively, in 2013 compared to 2012. The growth of these product lines helps diversify our revenue portfolio while expanding our Spy brand. We believe our solid year to date results position us well for the fourth quarter of 2013 and into 2014."

Third quarter sales of Spy brand products were $10.2 million in 2013, an increase of 3 percent or $0.3 million greater than in the third quarter of 2012. Total company net sales increased by 3 percent or $0.3 million, to $10.2 million compared to $9.9 million in the third quarter of 2012. There were no licensed brand sales in the third quarter of 2013, compared with $0.1 million in the third quarter of 2012. Net loss improved by $1.5 million to $0.3 million in the third quarter of 2013, compared to a net loss of $1.8 million in the third quarter of 2012.

Sales of Spy brand products were $29.1 million during the nine months ended Sept. 30, 2013, an increase of 8.0 percent or $2.0 million greater than in of the same period in 2012. Total company net sales increased by 6 percent or $1.7 million, to $29.2 million during the nine months ended Sept. 30, 2013, compared to $27.5 million in the same period in 2012. The difference is attributable to the sale of the company’s discontinued licensed brand products, which will have no sales in the future. Discontinued licensed brand sales were less than $50,000 during the nine months ended Sept. 30, 2013, compared with sales of $0.4 million in the same period of 2012. Net loss improved by $4.4 million to $1.6 million in the nine months, compared to a net loss of $6.0 million during the same period in 2012.