Spy Dirty Mo Sunglasses - Takes the Checkered Flag in Sunglass Sales!

Dirty Mo Sunglasses - Dale Jr's Signature Model are blowing doors off the competition in sales of Spy Sunglasses. Since appearing on the scene less than 2 weeks ago as an early release of a 2009 Spy Optics Signature sunglass model, the Dirty Mo has been tearing up the sales floor just like Dale Jr at a NASCAR Winston Cup Race!

"We were the first to sell the Spy Dirty Mo in the USA, says Chris Riehl product manager at eyewear and sunglass superstore www.Surfeyes.com, and the DMP signature frame has been selling like hot cakes since the day it arrived. With no end in sight! It just gores to show you how loyal race car fans are a what a marketing machine Dale Earnhardt Jr continues to be, plus it is such a cool frame!"

The Dirty Mo Sunglasses come in three color ways, each with an option for Regular or Polarized Lenses and right now supplies are just Ok, with stock left in each, but that is sure to change by the end of the month.

You can Buy the Spy Dirty Dirty Mo Sunglasses online at Surfeyes.com.

- Surfeyes.com

THE NEXT GENERATION OF SURFERS: SPOTLIGHT ON RISING SUPERSTAR KANOA IGARASHI




As told by Spy Optic Surf Segment Manager John Oda

Things have changed since I was a kid. With computer technology, internet access, high tech video games, and high-def TV, more kids have a fast-paced super-complex lifestyle. There is a new breed of superstardom within the growing sphere of action sports. The Tony Hawks and Kelly Slaters of the future are constantly emerging.

“Who is the next great one?” seems to be a common question of every young generation. It's like a feeding frenzy, a growing epidemic. Kids are different today because they are more driven than before as now fame and success are more exposed than ever.

Who doesn't want to be a superstar? We all have dreamt about it but now it's more available and even more youthful than ever.

I have been fortunate enough to see the growth of Clay Marzo, John John Florence, Luke Davis and many others on the Spy Optic surf team. Many say that the parents are pushing their kids too fast and too much, that they're being "soccer parents" and living vicariously through their kids. In my experience, if there is a wrong or something to blame it's the competitive times we live in. These kids want for themsleves it badly.

Now emerges another and even younger generation of groms. The one I have my eye on is Kanoa Igarashi. He's a second-generation Japanese transplant who resides in Huntington Beach, California. Ten-year old Kanoa stands about four and a half feet tall. He is a driven young grom with a great personality who has the passion and motivation for success. Kanoa goes to school like most kids, but goes above and beyond by attending Japanese school as well. He is bilingual, and keeps his Japanese roots alive by attending the extra schooling. After all his classes, he surfs and competes in contests. He loves contests and loves competing more than anything. I followed Kanoa around on a pretty typical weekend to see what he does and how he creates his own formula for success:

Saturday May 31, 2008
Rip Curl Grom Search.
Pacific Beach, San Diego, CA

Kanoa is the reigning champion at this event. He won the twelve and under age division at only nine years old in 2007.

The Igarashi's leave home at 5am to get the contest early so that Kanoa can free surf before his heat to feel out the conditions in Pacific Beach. They have a two hour drive to get to the contest site.

The surf is at best three feet on the face and weak in power. Kanoa breezes through his early heats making it easily into the finals of the twelve and under division. With the tide dropping, the waves get inconsistent for the final. Kanoa gets one decent wave but fails to find another good backup and falls short of a repeat, getting 4th place in the 12 and under division. From the start of his day, thirteen hours later he's home in bed resting for his next contest the following day.

Sunday June 1, 2008
Big Day Out presented by Jack's and Oakley
9th street Huntington Beach CA

It’s another early morning for the Igarashi family. They arrive at the beach at 6am to sign up and get in a free surf to warm up before heats. Kanoa's on another good run, making two finals for this event (Mini Groms 10 and under and the Boys 14 and under divisions).

His first final is the Mini grom division, where one of the finalists that Kanoa has to surf against is his five year old brother Keanu. In this division, most of the kids can barely surf or even make it to the outside where the waves are breaking. It's not that the other kids in that division are bad; it's just that Kanoa is that good. Kanoa wins without any problems at all.

The next division is going to be harder for him. It's the Boys division (14-year-olds and under). Kanoa finds a couple of waves that break from the outside and rips his way into the shore break, winning that division. Not a bad day for him with two finals and two wins. He leaves with more prizes than any kid would ever know what to do with.

This is typical weekend for Kanoa Igarashi and many other surfer groms that have this level of drive. This is their joy not their sacrifice. This is their lifestyle and their playground built by ambitious kids who are destined for success.

JO: Do you really like doing this many contests? Why?
KI: Yeah. I like doing them to see how good I can do. It's so fun!

JO: So if you lose or didn’t win, would you want to do as many contests as you are doing now?
KI: Heck no. (laughter) If I surf well and don't win it's OK because I was happy with the way I surfed and that's all the matters to me. I only get mad when I don't surf well.

JO: So what are you going to do now that this contest is over? Are going to surf again today?
KI: No. I want to invite my friend to eat dinner with me at Wahoo's or California Pizza Kitchen and go to bed early and get ready for tomorrow. Where should I eat?

JO: What’s going on tomorrow? What are you planning to do next week?
KI: I am going to Lowers after school to meet my coach to surf and train for the NSSA Nationals. I really want to do well at that contest. It would be nice to get good results there because it's a contest with all the best kids from the US and Hawaii. I also want to do the HB Surf series next weekend.

JO: Any last words before we part ways?
KI: When do I get to meet Dean Morrison? (laughter)

JO: I admire these groms who are on the path of fulfilling their dreams. Who can blame them? What would you rather do; surf all day or sit behind a desk and have someone boss you around all the time? How about even worse, wondering if you could have ever succeeded in what you had once desired and daydreaming of what it would have been like if you had only tried?

It's not ours to stop them from trying or to tell them it's not right to do this because we did not have that desire or opportunity for ourselves. It's our job to help them be all they can be, to encourage them, to guide them, to slow them down at times and to teach them that it is a long distance race not a sprint. Remind them to enjoy it all—the wins, the successes and to learn from the losses and short comings. It all can be fun with the right mindset and we can learn from them as well.

- Surfeyes.com

SPY TEAM RIDER - K-DUB FINISHES AN IMPRESSIVE SUPERCROSS SEASON!

CARLSBAD, Calif., (May 14, 2008) – You’d be hard-pressed to find a more popular rider on the Monster Energy AMA Supercross circuit than Spy Optic’s Kevin “K-Dub” Windham. The highly visible veteran racer from the Torco/Honda team put together one of his best Supercross seasons on record in 2008 and came this close to winning the overall AMA Supercross class championship in Las Vegas - settling on a well-deserved 2nd place overall podium finish on the world’s premier stadium motocross racing stage.

Windham, who ran the his namesake Spy Optic Magneto “Kevin Windham Signature” goggle throughout the 2008 Supercross season, has long been a fan-favorite on the Supercross tour. One of the more approachable riders to both fans and younger pro racers alike, Windham was instrumental in Spy Optic-backed Trey Canard’s (Torco/Honda) ESX Lites championship in his rookie Supercross season, as well as providing solid advice to the rest of the Torco/Honda Lites team.

“I’ve known Kevin for a long time and had the privilege of racing with him in the past. He’s one of the top racers in the world and doesn’t look like he’ll be slowing down anytime soon,” said Spy Optic co-founder and spokesman Jeremy McGrath. “Kevin’s style and determination are both fine examples to up-and-coming riders and, speaking for everyone at Spy, we’re pleased to feature him as Spy’s Athlete of the Month for May.”

Windham’s Supercross season was highlighted by four wins – including back-to-back wins at Seattle and St. Louis heading into the month of May. The effort brought Windham to within ten points of series leader Chad Reed with one round remaining, but Windham couldn’t capitalize at the Vegas finals and Reed won the series straight up – an effort which the ever-gentlemanly Windham was highly congratulatory on.

Said Windham prior to the Vegas finals: “Chad going from last to 2nd at St. Louis put a dimmer on the whole opportunity. 7th or worse if I win it can happen, but it’s going to be tough. But nothing would hold a candle to the championship. It’ll be tough pill to swallow. Ten points I have to make up, ten points I have to be concerned about. I haven’t had this opportunity before, but feel I’m one of the youngest 30s guys out there. I appreciate my fans and the sponsors like Spy supporting our team. And I’m going into the 17th round as hungry as I was at Anaheim 1.”

Thing was Windham never let up - all season long. He racked up 12 podiums in 17 races and never finishing outside the top five, which was – by far – the most consistent numbers of any Supercross class racer.

Want the same view as Windham had throughout the 2008 Supercross season? Better practice up! In the mean time you can get an idea of what he saw by checking out the Spy Optic Windham Signature goggles at: http://www.spyoptic.com/cat.php?k=62215

- Surfeyes.com

Orange 21 Inc. Reports 2007 Financial Results


CARLSBAD, Calif.April 8, 2008--Orange 21 Inc. (NASDAQ:ORNG), a leading developer of brands that produce premium products for the action sports and youth lifestyle markets, today announced financial results for the year ended December 31, 2007.

Years Ended December 31, 2007 and 2006

Consolidated net sales increased 10% to $46.5 million for the year ended December 31, 2007 from $42.4 million for the year ended December 31, 2006. The increase is partly due to increased sales and marketing efforts, including an increase in sales force, and an improvement in product mix. A net loss of $8.0 million was incurred for the year ended December 31, 2007 compared to a net loss of $7.2 million for the year ended December 31, 2006.

Our consolidated gross profit increased 30% to $22.8 million for the year ended December 31, 2007 from $17.5 million for the year ended December 31, 2006. Gross profit as a percentage of sales increased to 49% for the year ended December 31, 2007 from 41% for the year ended December 31, 2006. The increase in gross profit and gross profit as a percentage of sales is partly due to efficiencies achieved at LEM, our subsidiary and primary manufacturer, and a more favorable product mix. The increase is also due to net decreases in inventory reserves for slow moving and obsolete inventory that is no longer being marketed for resale of approximately of $1.4 million. During the year ended December 31, 2007, inventory with an adjusted basis of $0.8 million was sold for approximately $1.8 million in revenue, affecting margins by $1.0 million or 2% of net sales. The remaining decrease in the inventory reserve was mainly due to the disposal of product which has no effect on the results of operations.

Sales and marketing expense increased 12% to $16.2 million for the year ended December 31, 2007 from $14.5 million for the year ended December 31, 2006. The increase was primarily due to a $2.0 million write off of point-of-purchase displays in the U.S., which was a result of transferring ownership of the point-of-purchase displays to our customers during June 2007. In addition, in the U.S., further purchases of point-of-purchase displays will no longer be capitalized since the displays will be owned by the customers. The cost of these displays will be charged to sales and marketing expense. We do not expect this change to materially affect our results of operations in future periods.

General and administrative expense increased 2% to $9.6 million for the year ended December 31, 2007 from $9.4 million for the year ended December 31, 2006. The increase in general and administrative expense was primarily due to increased legal fees of $0.4 million which included $0.2 million in legal fees related to negotiations for the acquisition of the retail stores division of No Fear which did not materialize, a $0.3 million increase for employee-related compensation expense at LEM including severance pay for LEM employees and related legal fees, increased consulting fees of $0.3 million, increased share-based compensation in accordance with SFAS No. 123(R) of $0.2 million, and increases in depreciation and amortization costs and rent expense. The increases were partly offset by decreases in audit fees of $0.4 million, bad debt expense of $0.3 million, $0.2 million payroll costs in the U.S., investor relations related costs, travel and business insurance.

Shipping and warehousing expense remained consistent at $1.8 million for each of the years ended December 31, 2007 and 2006.

Research and development expense increased 24% to $1.2 million for the year ended December 31, 2007 from $1.0 million for the year ended December 31, 2006. The increase is mainly due to an increase in employee-related compensation expense.

Other net expense was $0.5 million for the year ended December 31, 2007 compared to other net expense of $0.4 million for the year ended December 31, 2006. The change in other net expense is primarily due to increases in net interest expense partly offset by an increase in foreign currency transaction gains in 2007 compared to foreign currency losses in 2006.

The income tax provision for the year ended December 31, 2007 was $1.5 million compared to a $2.3 million benefit for the year ended December 31, 2006. The effective tax rate for the years ended December 31, 2007 and 2006 was (22%) and 25%, respectively. The decrease in the effective tax rate was due to a larger proportion of the pretax losses incurred in the U.S. versus in Italy, offset by the valuation allowance of $3.2 million recorded in the U.S. booked in 2007 versus no valuation allowance recorded in 2006 for the U.S.

Non-GAAP Financial Information

During the year ended December 31, 2007, we incurred certain non-recurring items including $268,000 in legal costs and $50,000 in banking and underwriting fees for negotiations related to the potential acquisition of the retail stores division of No Fear that did not materialize, increased share-based compensation expense in accordance with SFAS No. 123(R) of $98,000 for acceleration of vesting of share-based grants made to one employee and severance pay of $91,000 in the U.S. In addition we had $2,375,000 in point-of-purchase display expense related to amounts capitalized as of December 31, 2006 in the U.S., which was depreciated through June 2007 with the balance written off in June 2007 as a result of transferring ownership of the point-of-purchase displays to our customers during June 2007. Additionally, we incurred $377,000 of recurring expense in accordance with SFAS No. 123(R). Absent these charges during the period, we would have had a loss before tax of approximately $3,283,000 compared to a loss before tax of approximately $9,527,000 during 2006.

(Thousands)
GAAP Loss before provision for income taxes (6,542)

No Fear legal costs 268
No Fear banking/underwriting costs 50
Acceleration of SFAS No. 123 (R) costs 98
Severance costs 91
POP display expense for displays purchased prior to
1/1/07 2,375
-----------

Non-GAAP Loss before benefit for income taxes, excluding
non-recurring items (3,660)
Recurring SFAS No. 123 (R) costs 377
-----------

Non-GAAP Loss before benefit for income taxes, excluding
non-recurring items and recurring SFAS No. 123 R costs (3,283)
===========

We believe the presentation of Non-GAAP financial measures assists investors to better understand our operating performance. We believe that excluding the impact of certain non-cash and non-recurring items from earnings is helpful to investors in their review of information presented by us.

Liquidity and Capital Resources

Cash, cash equivalents, restricted cash and short-term investments at December 31, 2007 totaled approximately $555,000 compared to $3.5 million at December 31, 2006.

Management Commentary and Analysis

Mark Simo, Orange 21's Chairman and CEO, commented:

"Last year was a year of transition for us at Orange 21. We entered 2007 with a great deal to fix: our product offering, our production efficiency, our inventory levels and quality, our relationships with our dealers, our internal management processes, and our marketing efficacy. Our goals were to stabilize the business on a revenue and cash flow basis, while working on multiple fronts to improve our business operations.

I am pleased to report that we largely met our goals for 2007. It was far from a perfect year, and, from the outside, our consolidated financial results do not look inspiringly improved. But, internally, we believe we largely succeeded in our core, underlying goals. We believe we have addressed many of the key problems that were present when I assumed oversight of the business in late 2006. We believe we have streamlined and improved the product offering; increased production efficiencies significantly; restructured our internal management team and processes; and re-invigorated our brand and our marketing programs.

In 2008 we will continue to tackle important operating challenges. Primary among those will be a physical consolidation of our production operations at LEM. While we will continue to work on operating challenges, I believe that the hard work done by the management team in 2007 has largely completed the task of stabilizing the business and the business model at Spy.

With a year of transition behind us, I am pleased to be able to say that I believe the key story in 2008 will in fact be growth -- the beginning of a new growth period for the Spy Optic brand and business. We see a new level of interest in our brand and product, at a national level. We need to be careful in managing this expected growth trajectory, so that we do not get ahead of our own capabilities as a company, as we have done in the past. Our goal is to lay a strong growth foundation. We believe that this year will see the first real evidence of new expansion of the brand, in terms of both revenues, and, in terms of the scope of accounts that we service. We are particularly gratified to be able to say this, in the face of the macroeconomic forces at work at home and abroad - softness in the domestic economy coupled with the dramatic decrease in the value of the dollar - both of which create a headwind for our expansion. We believe that our ability to grow in the face of these constraints is particularly strong evidence of the power of the Spy brand.

About Orange 21 Inc.

Orange 21 designs, develops, markets and produces premium products for the action sport and youth lifestyle markets. Orange 21's primary brand, Spy Optic (TM), manufactures sunglasses and goggles targeted toward the action sports and youth lifestyle markets.

- Surfeyes.com