SPY Inc. announced unaudited consolidated financial results for the third quarter and nine months ended September 30, 2014. For the quarter, the company reported sales were $11.0 million, an increase of 8.1% or $0.8 million more than from the sales of $10.152 million in the third quarter of 2013. The increase in Net Sales were primarily driven by strong goggle sales and continued growth in the company's prescription frames. Income from operations was increased by $0.1 million to $0.6 million in the third quarter of 2014, compared to income from operations of approximately $0.5 million in the third quarter of 2013. The $0.1 million increase was partially due to the increase in sales and a 70 basis point improvement in gross profit as a % of sales. Loss before provision for income taxes and net loss was $0.019 million or $0.00 per diluted share against loss before provision for income taxes and net loss of $0.302 million or $0.02 per diluted share a year ago.

For the nine months, the company's sales were $28.4 million in 2014, a decrease of 2.7% or $0.8 million less than from the sales of $29.154 million in the first nine months of 2013. Sales included lower closeout sales of $1.2 million in 2014, compared to $2.0 million in 2013. The decrease in Net Sales were primarily driven by an overall decline in the consumer market coupled with several key retailers currently holding lower levels of inventory and fewer closeout sales of the company's sunglass products. Income from operations remained constant and was $0.8 million and $0.8 million for the nine months ended in 2014 and 2013. Loss before provision for income taxes was $1.501 million against $1.597 million a year ago. Net loss was $1.504 million or $0.11 per diluted share against $1.597 million or $0.12 per diluted share a year ago.

Provided earnings guidance for the full year 2014, forecast is now for annual sales in the range of $38 million and continued improvement in gross margin rate. From a product perspective, the company anticipates the growth to come primarily from prescription frames and goggles, primarily driven by snow. For the full year, the company now expects the annual operating expenses in the range of $18 million to $18.5 million, which if achieved, will result in an annual operating profit of between $500,000 and $1 million.