Spy Inc. improved operating results and reduced its net losses in the financial year ended Dec. 31 as well as in the fourth quarter. The American company's revenues increased by 0.9 percent for the year to $38.1 million, but jumped by 13.2 percent to $9.8 million in the fourth quarter, driven by strong sales of snow goggles and continued growth in prescription frames.
The gross margin declined slightly to 46.8 percent in the quarter, but the company managed to book an operating profit of $112,000 for the period, against a loss of $577,000 in the same quarter a year earlier, thanks in particular to the inclusion of Spy's proprietary Happy Lens technology in its snow goggles. Interest expenses declined, but the company recorded a net loss of $445,000 for the three months, down sharply from $1,254,000 in the year-earlier period.
For the full financial year, sales went up by 0.9 percent to $38.1 million, sustained by higher sales of prescription frames and goggles. Close-out sales of obsolete products were reduced to $2.0 million. The gross margin for the year improved to 50.6 percent from 49.9 percent in 2013. Operating losses declined to $2,813,000 from $3,261,000 and the company ended up with a net loss of $1,996,000, down from $2,836,000.
The management says that the positive trends achieved in sunglasses and prescription frames continued in the first quarter of 2015. While covering the optical, sporting goods and outdoor retail channels, Spy hopes to achieve continued growth through investments made in sponsorships. It is committed to driving growth in its e-commerce business through its online retail partners.