CARLSBAD, Calif.--(BUSINESS WIRE)--Oct. 24, 2005--Orange 21 Inc.
(Nasdaq:ORNG), a leading developer of brands that produce premium
products for the action sport and youth lifestyle markets, announced
today that it expects revenues for 2005 in the range of $41.5 million
- $42.5 million, the lower end of initial guidance and fully diluted
earnings per share in the range of $0.05 to $0.09.
For the third quarter of 2005, Orange 21 forecasts revenue in the
range of $10.6 million to $10.8 million and fully diluted earnings per
share in the range of $0.02 to $0.03.
The revised guidance reflects a reduction in second half sales,
which were impacted by several factors including the late shipment of
orders due to delays in manufacturing, late deployment of point of
purchase displays, a change in several international distributors and
lower than expected sales in the new E Eyewear product line.
Additionally, earnings were further impacted due to reduced margins as
a result of the weak US dollar relative to the Euro and a slight
increase in close out sales. The revised guidance includes $0.02 of
dilution from the acquisition of Orange 21's eyewear manufacturer and
$0.01 to $0.02 attributable to the costs of the Oakley and Class
Action law suits, which had previously been excluded from guidance.
Barry Buchholtz, Chief Executive Officer, said, "While we are
disappointed to announce that our 2005 performance is not meeting our
expectations, we are pleased with our revenue growth and believe that
our core brand is well positioned for continued growth in 2006.
Although we have experienced growing pains during our first year as a
public company, we continue to invest in our brands and believe we are
taking the right strategic initiatives for the long term. To that end,
we also announced today the acquisition of our Italian manufacturer,
LEM, which will help us to achieve our revenue growth and margin
Quarterly Investor Conference Call
Orange 21 will release third quarter financial results on Tuesday,
November 15, 2005, after the market close. The Company's Chief
Executive Officer, Barry Buchholtz, and Chief Financial Officer,
Michael Brower, will host an investor conference call that same day,
at 1:30 p.m. Pacific Standard Time. The call will be open to all
interested investors through a live audio Web broadcast via the
Internet at www.orangetwentyone.com. Alternatively, investors may
listen in by telephone to the conference call by dialing 800-822-4794
(international callers can dial 913-981-4912). A replay will be
available beginning at 4:30 p.m. PT by calling 888-203-1112, password:
1932644 (international callers can dial 719-457-0820). For those who
are not available to listen to the live broadcast, the call will be
About Orange 21 Inc.
Orange 21 develops brands that produce premium products for the
action sport and youth lifestyle markets. Orange 21's brands include
Spy Optic(TM), which manufactures sunglasses and goggles targeted
toward the action sports and youth lifestyle market, and E
Eyewear(TM), which manufactures the signature Dale Earnhardt, Jr.
Safe Harbor Statement
Safe Harbor Statement under the Private Securities Litigation
Reform Act of 1995: This press release contains forward-looking
statements and forecasts about Orange 21 and its business, such as
management's estimates of net sales and earnings for 2005. Because
forecasts are inherently estimates that cannot be made with precision,
the company's performance may at times differ from its estimates and
Statements in this press release regarding financial guidance,
management's statements and statements that refer to Orange 21's
estimated and anticipated future results are forward-looking
statements. All forward-looking statements in this press release
reflect Orange 21's current analysis of existing trends and
information and represent Orange 21's judgment only as of the date of
this press release. Actual results may differ from current
expectations based on a number of factors affecting Orange 21's
business, including but not limited to, adjustments made pursuant to
the final audit by our outside auditors; uncertainties associated with
Orange 21's ability to maintain a sufficient supply of products and to
successfully manufacture its products; the performance of new products
and continued acceptance of current products; the execution of
strategic initiatives and alliances; the impact of ongoing litigation;
and the uncertainties associated with intellectual property protection
for its products. In addition, matters generally affecting the
domestic and global economy, such as changes in interest and currency
exchange rates, can affect Orange 21's results. Therefore, the reader
is cautioned not to rely on these forward-looking statements. Orange
21 disclaims any intent or obligation to update these forward-looking
Further information on potential risk factors that could affect
Orange 21's business and its financial results are detailed in its
filings with the Securities and Exchange Commission, including its
most recent quarterly report on Form 10-Q. Undue reliance should not
be placed on forward-looking statements.
CONTACT: Orange 21, Inc.
Michael Brower, 760-804-8420
Integrated Corporate Relations (Investor Relations)
Andrew Greenebaum or Allyson Pooley, 310-395-2215
SOURCE: Orange 21 Inc.