Cybex International reported sales for the second quarter of 2010 were flat at $27.7 million compared to $27.8 million for the corresponding 2009 period. The company reported a net loss for the second quarter of 2010 of $400,000, or 2 cents per diluted share, compared to a net loss of $2.1 million, or 12 cents per diluted share in the 2009 period.
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 professed that “24/7 express clubs have come in and considerably reduced prices, which has put a lot of pressure under the mainstream health club market. So we have alleviated that problem by going to the college-university market, the military and fire and police.” According to Aglialoro, those markets “prefer value over lower pricing.” Other ventures led to a contract with NBC for the national broadcaster’s fitness-related shows.
The shift in focus has produced an upswing in gross margin, improving 870 basis points to 34.4% of sales from 25.7% in the year ago period.
Aglialoro added that sales to customers outside of the United States increased throughout 2010 and sales momentum seems to be building in the newly targeted markets. “Despite the continuing difficult global economic environment, we are making significant investments in marketing and new product development, which will build on [the company’s] reputation and position in the marketplace,” said the chairman.
