Spy returned to growth in the third quarter ended Sept. 30. Sales increased by 8.1 percent in the period to $11.0 million, thanks primarily to strong sales of snow goggles and continued growth in prescription frames. There were also increases in sales of Happy Lenses, which are now being launched in the snow category, and sunglasses. The gross margin improved to 49.2 percent from 48.5 percent in the year-ago period, thanks to a more premium positioning and new product sourcing initiatives. Operating income increased to $593,000 from $454,000, and the net loss declined to $19,000 from $302,000. For the first nine months of the year, sales were still off by 2.7 percent to $28.4 million, but operating results remained steady and Spy ended with a net loss of $1,504,000, down from $1,597,000.

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