Orange 21, parent company of Spy Optic, reports a net loss of $3.0 million for the third quarter ended Sept. 31, compared with a $0.9 million loss in the year ago period. The main factors were a lower gross margin related to increased inventory reserves and closeout sales for its licensed brands, as well as higher sales and marketing expenditures for Spy. Net sales increased to $9.2 million for the period, which compares with $6.9 million excluding LEM, the Italian manufacturing subsidiary sold last Dec. 31, and with $8.2 million including LEM. Spy's sales rose by $1.6 million, with nice growth for its snow goggles and sunglasses in North America and elsewhere.