Orange 21 is being removed from the Nasdaq stock market after failing to comply with its rules. Last September, the watchdog authority of this American stock exchange warned the parent company of Spy Optic that its share price had been trading below $1 for 30 days in a row, and that it had 180 days, until March 16, to get its prices back up to the required minimum. However, it did not. It does not plan to appeal the ruling, so effective March 25, Orange 21 shares were no longer listed with Nasdaq. It will, however, be traded on the «pink sheets,» a secondary market for small capitalization stocks.
The company's net sales dropped by 27.7 percent to $34.2 million for the year ended Dec. 31, yet the company managed to reduce its net loss to $3.4 million, against a loss of $15.2 million for 2008. The 2008 loss included a non-cash charge of $8.4 million related to the purchase of LEM, the Italian production company bought in 2006, as well as a $3.5 million increase in Orange 21's income tax valuation allowance. The annual gross profit margin fell by 4.6 percentage points to 40.4 percent. The company will continue ongoing cost-cutting measures and hopes to minimize future losses.
In Italy, meanwhile, the company's European sales subsidiary has changed its name from Spy Optic to Orange 21 Europe. This is in connection with the introduction of two new lines of eyewear, which were both presented at last month's Mido show in Milan. One is the new licensed collection of O'Neill eyewear. The other is a line licensed from Jimmy Buffett, the American singer, song writer and pilto, under the Margaritaville label.