Orange 21 Inc. (ORNG, Financial) filed Quarterly Report for the period ended 2011-06-30.
Orange 21 Inc. has a market cap of $19.17 million; its shares were traded at around $0 with and P/S ratio of 0.55.
On a pro forma basis, consolidated net sales during the three months ended June 30, 2010 were $8.4 million, which excludes sales attributable to LEM of $1.1 million during that period. On a pro forma basis, consolidated net sales increased by $0.6 million to $9.0 million (7%) for the three months ended June 30, 2011, compared to the three months ended June 30, 2010. Closeout sales decreased approximately $0.1 million while sales of core Spy® and licensed products in North America and International increased by $0.7 million during the three months ended June 30, 2011 compared to June 30, 2010. Sales of our licensed brands included in North America and International remained modest during the three months ended June 30, 2011, but did contribute to our overall sales growth on a pro forma basis since there were relatively insignificant sales during the three months ended June 30, 2010.
Our consolidated gross profit decreased by $0.6 million (11%) to $4.9 million for the three months ended June 30, 2011 from $5.5 million for the three months ended June 30, 2010, primarily due to the sale of LEM on December 31, 2010. On a pro forma basis (excluding LEM 2010 gross profit of $0.9 million, which amount includes related intercompany gross profit eliminations), gross profit increased by $0.3 million (6%) to $4.9 million for the three months ended June 30, 2011 from $4.6 million for the three months ended June 30, 2010, consistent with the sales growth rate during the three months ended June 30, 2011 compared to June 30, 2010.
Sales and marketing expense increased by $0.3 million (16%) to $2.6 million for the three months ended June 30, 2011 from $2.3 million for the three months ended June 30, 2010. Sales and marketing expense included $0.1 million related to LEM during the three months ended June 30, 2010 such that sales and marketing expense was $2.2 million on a pro forma basis or an increase of $0.4 million when compared to the three months ended June 30, 2011. The $0.4 million increase on a pro forma basis included: (i) a $0.2 million increase in marketing related expenses primarily for additions in headcount, and (ii) a $0.2 million increase in sales incentives and commissions associated with the sales growth.
General and administrative expense increased by $0.7 million (38%) to $2.6 million for the three months ended June 30, 2011 from $1.9 million for the three months ended June 30, 2010. General and administrative expense included $0.4 million related to LEM during the three months ended June 30, 2010, such that general and administrative expense was $1.5 million on a pro forma basis or an increase of $1.1 million when compared to the three months ended June 30, 2011. The increase was largely due to the restructuring of our management in April 2011 and related costs during the three months ended June 30, 2011. The $1.1 million increase on a pro forma basis included: (i) a $0.5 million increase in severance costs, (ii) a $0.3 million increase in stock based compensation due to the Regent Pacific warrant and stock option modifications, (iii) a $0.2 million increase in legal costs primarily associated with the restructuring of management and related corporate affairs, and (iv) $0.1 million of other costs.
Research and development expense decreased by $0.2 million (63%) to $0.2 million for the three months ended June 30, 2011 from $0.4 million for the three months ended June 30, 2010 primarily due to the sale of LEM which had $0.2 million of research and development expenses during the three months ended June 30, 2010.
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Orange 21 Inc. has a market cap of $19.17 million; its shares were traded at around $0 with and P/S ratio of 0.55.
Highlight of Business Operations:
The minimum purchase amount for the year ending December 31, 2011 is 3,717,617. Converted into United States dollars at the spot exchange rates in effect at June 30, 2011 and December 31, 2010, and taking into account purchases made through June 30, 2011, the remaining minimum purchase amount converted to US$ was US$2,784,383 and US$4,968,595 as of June 30, 2011 and December 31, 2010, respectively. The minimum purchase amount for the year ended December 31, 2012 is 1,858,808. Converted into United States dollars, the minimum purchase amount was US$2,675,011 and US$2,484,297 as of June 30, 2011 and December 31, 2010, respectively. In the event the Company does not meet the minimum purchase amounts indicated above, the Company has the obligation to pay LEM in cash an amount equal to 0.37 for each Euro of goods and/or services of the minimum purchase amounts not purchased by the Company prior to December 31, 2011. The Company has non-cancellable open purchase orders to LEM of approximately 738,000 (US$1,062,056) as of June 30, 2011, from which it anticipates delivery prior to December 31, 2011.On a pro forma basis, consolidated net sales during the three months ended June 30, 2010 were $8.4 million, which excludes sales attributable to LEM of $1.1 million during that period. On a pro forma basis, consolidated net sales increased by $0.6 million to $9.0 million (7%) for the three months ended June 30, 2011, compared to the three months ended June 30, 2010. Closeout sales decreased approximately $0.1 million while sales of core Spy® and licensed products in North America and International increased by $0.7 million during the three months ended June 30, 2011 compared to June 30, 2010. Sales of our licensed brands included in North America and International remained modest during the three months ended June 30, 2011, but did contribute to our overall sales growth on a pro forma basis since there were relatively insignificant sales during the three months ended June 30, 2010.
Our consolidated gross profit decreased by $0.6 million (11%) to $4.9 million for the three months ended June 30, 2011 from $5.5 million for the three months ended June 30, 2010, primarily due to the sale of LEM on December 31, 2010. On a pro forma basis (excluding LEM 2010 gross profit of $0.9 million, which amount includes related intercompany gross profit eliminations), gross profit increased by $0.3 million (6%) to $4.9 million for the three months ended June 30, 2011 from $4.6 million for the three months ended June 30, 2010, consistent with the sales growth rate during the three months ended June 30, 2011 compared to June 30, 2010.
Sales and marketing expense increased by $0.3 million (16%) to $2.6 million for the three months ended June 30, 2011 from $2.3 million for the three months ended June 30, 2010. Sales and marketing expense included $0.1 million related to LEM during the three months ended June 30, 2010 such that sales and marketing expense was $2.2 million on a pro forma basis or an increase of $0.4 million when compared to the three months ended June 30, 2011. The $0.4 million increase on a pro forma basis included: (i) a $0.2 million increase in marketing related expenses primarily for additions in headcount, and (ii) a $0.2 million increase in sales incentives and commissions associated with the sales growth.
General and administrative expense increased by $0.7 million (38%) to $2.6 million for the three months ended June 30, 2011 from $1.9 million for the three months ended June 30, 2010. General and administrative expense included $0.4 million related to LEM during the three months ended June 30, 2010, such that general and administrative expense was $1.5 million on a pro forma basis or an increase of $1.1 million when compared to the three months ended June 30, 2011. The increase was largely due to the restructuring of our management in April 2011 and related costs during the three months ended June 30, 2011. The $1.1 million increase on a pro forma basis included: (i) a $0.5 million increase in severance costs, (ii) a $0.3 million increase in stock based compensation due to the Regent Pacific warrant and stock option modifications, (iii) a $0.2 million increase in legal costs primarily associated with the restructuring of management and related corporate affairs, and (iv) $0.1 million of other costs.
Research and development expense decreased by $0.2 million (63%) to $0.2 million for the three months ended June 30, 2011 from $0.4 million for the three months ended June 30, 2010 primarily due to the sale of LEM which had $0.2 million of research and development expenses during the three months ended June 30, 2010.
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