Spy's net loss widened to $788,000 in the third quarter from a loss of $19,000 in the same period a year ago as the U.S. company's sales fell by 14.6 percent to $9,370,000 during the period. The gross margin declined sharply to 43.7 percent from 49.2 percent in the same quarter a year ago, and the company booked an operating loss of $122,000 against an operating profit of $593,000. For the first nine months of the year, sales were down to $26.6 million from $28.3 million in the year-ago period.It still made an operating profit of $28,000, down from $778,000, and net losses increased to $1,715,000 from $1,504,000. The deterioration in the company's results helps to explain the resignation a few weeks ago of Spy's former CEO, Michael Marckx, following the release of poor sales and profits for the first half of this year. Technically, his employment contract was due to be terminated on Dec. 15.

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