After Cybex posted a net loss last quarter, management was still optimistic about the year ahead, predicting growth in the second half.

It appears the company is a quarter ahead of schedule as second quarter net sales jumped 13.0% to $27.2 million compared to $24.1 million for last-year’s second quarter. Gross margin decreased 280 basis points to 35.5% of sales compared to 38.3% last year, while SG&A expenses dropped 160 basis points to 29.3% of sales. The SG&A decrease combined with the sales increase was enough to push net income for the quarter up 24.6% to $1.0 million compared to net income for Q2 2004 of $833,000. Diluted EPS, however fell one cent to 7 cents per diluted share this year from 8 cents for the year-ago quarter.

John Aglialoro, chairman and CEO noted the sales increase was led by “continued success of the Arc Trainer” and pointed to product introductions scheduled for the second half as evidence for Cybex’s continued growth.