Cybex Posts Q1 Loss as Sales Dip 10%

Cybex International, Inc., the manufacturer of exercise equipment, reported sales for the first quarter of 2010 decreased by 10% 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 $0.04 per diluted share, compared to a net loss for the first quarter of 2009 of $1.4 million or $0.08 per diluted share.

“We have worked hard to increase gross profit margins and were pleased with the margin results achieved in Q1. Although purchases by the fitness club market continue to be slow, our sales and marketing efforts directed to new markets should generate incremental revenue in future quarters.”

John Aglialoro, CYBEX Chairman and CEO stated, “We have worked hard to increase gross profit margins and were pleased with the margin results achieved in Q1. Although purchases by the fitness club market continue to be slow, our sales and marketing efforts directed to new markets should generate incremental revenue in future quarters.”

Arthur Hicks, CYBEX President and COO stated, “CYBEX has continued to invest in R&D during these challenging economic times. That is our future and we are excited with our new product pipeline. As an example, a strength line for professional and college varsity sports teams will be introduced during the second half of 2010, which we will package with our other products to meet the needs of those customers.”

CYBEX INTERNATIONAL, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except per share data)
(unaudited)
                                                                                Three Months Ended
                                                                            March 27,       March 28,
                                                                                2010            2009
Net sales                                                              $    26,116    $    28,922
Cost of sales                                                              16,650          21,023
Gross profit                                                                9,466            7,899
As a percentage of sales                                              36.2   %        27.3   %
Selling, general and administrative expenses                     10,258          9,863
Operating loss                                                            (792)           (1,964)
Interest expense, net                                                   322              277
Loss before income taxes                                             (1,114)        (2,241)
Income taxes (benefit)                                                (361)             (834)
Net loss                                                                $  (753)        $ (1,407 )
Basic and diluted net loss per share                           $  (0.04  )     $   (0.08  )
Shares used in computing basic and 

diluted 

net loss per share                                              17,120          17,424