SOURCE: SPY Inc.

SPY Inc.

July 15, 2016 16:30 ET

SPY Inc. Announces Financial Highlights for the First Half 2016

CARLSBAD, CA--(Marketwired - July 15, 2016) - SPY Inc. (OTC PINK: XSPY) today announced financial results for the six months ended June 30, 2016.

 
   CONSOLIDATED FINANCIAL HIGHLIGHTS
   (Thousands)
   Six Months Ended June 30,
   2016 
 2015 
   (Unaudited)
Net sales  $14,680  $17,252
Gross margin  $7,940  $9,206
Operating expenses  $7,269  $8,876
Operating profit  $671  $150
Net income (loss)  $443  $(927)
       

As mentioned in an additional press release issued today, during the first half of 2016 Spy Inc. completed a restructuring of its balance sheet involving the conversion of a substantial portion of the Company's debt into equity. As of June 30, 2016, 89,624,185 shares of common stock were outstanding on a fully diluted basis after giving effect to the conversion and exercise of derivative securities.

This financial information provided in this release has not been reviewed by the Company's independent accounting firm, and is therefore unaudited.

SPY Inc.:

We have a happy disrespect for the usual way of looking (at life) and the need to SEE HAPPY. It is this mindset that drives us to design, market, and distribute premium products for people who "live" to be outdoors, pushing the boundaries in action sports, motorsports, snow sports, cycling and multi-sports. We actively support the lifestyle subcultures that surround these pursuits, and as a result our products serve the broader fashion, music and entertainment markets of the youth culture. Our reason for being is to create the unusual and this is what helps us deliver distinctive products to people who are active, fun and a bit irreverent, like us. Our principal products -- sunglasses, goggles and prescription frames -- are marketed with fun and creativity under the SPY® brand. More information about SPY may be obtained from: www.spyoptic.com, www.facebook.com/spyoptic, Twitter @spyoptic and Instagram @spyoptic.

Safe Harbor Statement:

This press release contains forward-looking statements. These statements relate to future events or future financial performance and are subject to risks and uncertainties. In some cases, you can identify forward-looking statements by terminology such as "may," "will," "should," "expect," "plan," "anticipate," "believe," "feel," "estimate," "predict," "hope," the negative of such terms, expressions of optimism or other comparable terminology. These statements are only predictions. Actual events or results may differ materially. Factors that could cause actual results to differ from those contained in our forward-looking statements include, but are not limited to lack of continuity and effectiveness of our management team, our ability to generate sufficient incremental sales of our core SPY® brand and new products to recoup our significant investments in sales and marketing, our ability to lower our expenses or otherwise reduce our breakeven point on an operating basis, our ability to maintain or increase the availability of our existing credit facilities and otherwise finance our strategic objectives, and the other risks identified from time to time. Although we believe that the expectations reflected in our forward-looking statements are reasonable, we cannot guarantee future results and undertake no obligation to update any of these forward-looking statements.

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