Orange 21, parent company of Spy Optic, saw its net sales plummet by 35 percent to $9.1 million for the second quarter ended June 30. It had a net loss of $254,000 narrowing the gap from the loss of $273,000 for the same quarter last year. This year's loss included $129,000 in non-cash compensation costs. The company said operating expenses were cut by $2.6 million in the second quarter, and gross margins remained strong. For the first six months of 2009, revenue fell by 35.3 percent to $16.5 million. The net loss was $1.058 million versus $1.124 million last year.