Cybex International reported sales for the first quarter of 2010 decreased by 9.7% to $26.1 million compared to $28.9 million for the corresponding 2009 period. The company reported a net loss for the first quarter of 2010 of $0.8 million, or 4 cents per diluted share, compared to a net loss for the first quarter of 2009 of $1.4 million, or 8 cents per diluted share.
Although sales are down within the health club market, the focus for Cybex -given the current state of a rebounding economy-has shifted to the performance side. John Aglialoro, chairman and CEO of Cybex International professed the health club market is locked in a cash flow purgatory, causing the company to rely more heavily on performance markets which, according to Aglialoro, prefer value over lower pricing.
The companys shifted focus, however, has led to an upswing with gross margin improving 890 basis points to 36.3% of sales from 27.3% in the year ago period.
In other Cybex news, the company responded to infringements of its intellectual property rights related to its patented Plate Loaded Leg Press and the companys pending patent applications for the Bravo Functional Trainer. The decision to do so came after the International Health, Racquet & Sportsclub Association (IHRSA) trade show in San Diego, CA when the company discovered four separate violations of its intellectual property.
Cybex immediately responded by demanding that the offending parties cease and desist from manufacturing, selling or importing into the US products which incorporate Cybex intellectual property, and each party has agreed to comply with this demand.
Cybex devotes a tremendous amount of time, energy and resources to research and development, says Altogether, Cybex simply wants credit where credits due. This has resulted in dozens of patents for our strength and cardio training equipment. Some of our competitors may be looking for short cuts and find it easier to copy than to innovate. We will always strive to protect the intellectual property weve worked so hard to create, said Ray Giannelli, Cybex SVP, research and development.