CARLSBAD, Calif.—Orange 21 Inc. (OTCBB:ORNG), manufacturer of Spy Optic, O’Neill, Melodies by MJB and Margaritaville eyewear brands, has announced their financial results for the quarter ended Sept. 30, 2010.

Net sales decreased 6 percent to $8.2 million for the third quarter from $8.8 million for the same period 2009. Sunglass sales represented approximately 61 percent and 57 percent of net sales during the three months ended Sept. 30, 2010 and 2009, respectively. The company reported a loss of $932,000 for the quarter versus a loss of $1.14 million for the same period 2009.

Net sales for the first nine months increased 3 percent to $26 million from $25.3 million in the first nine months of 2009. Sunglass sales represented approximately 78 percent and 76 percent of net sales during the nine months ended Sept. 30, 2010 and 2009, respectively. The company posted a loss of $1.5 million for the nine months compared to a loss of $2.2 million for the same period 2009.

“We experienced a challenging quarter given the lack of sun in Southern California this summer, which negatively affected our net sales” said Stone Douglass, CEO of Orange 21. “Gross margins increased to 47 percent for the three months ended Sept. 30, 2010 from 33 percent during the comparable period in 2009, aided by more effective sourcing in Asia as well as improved operations and a more favorable Euro to U.S. Dollar exchange rate on purchases from LEM, our manufacturing subsidiary in Italy.”

Additionally, the third quarter included approximately $0.4 million in additional direct operating expenses related to the addition of the Margaritaville and Melodies by MJB eyewear brands for which there were minimal sales during the period, according to the company. There were no such expenses during the comparable period in 2009. The Melodies by MJB line began to sell in stores and online at www.melodiesbymjb.com during September and was promoted in cities that Mary J. Blige was touring, added the company. The Margaritaville line is expected to launch in the later part of November in select stores and online at www.margaritavilleeyewear.com.