Cybex International, Inc. saw its margins shrink in the third quarter, but tightened controls on the expense line coupled with a double-digit increase in sales to flip the year-ago net loss to a profit this time around.
The company posted net sales of $29.8 million for the third quarter, a 12% increase from $26.7 million during the year-ago quarter. The company saw its gross margin decrease 40 basis points to 35.4% of sales in the quarter, but this decrease was offset by a 70 basis point decrease in SG&A expenses to 30.3% of net sales. On a GAAP basis, the company reported net income for the third quarter of 2006 of $817,000, or 5 cents per diluted share, compared to a net loss of $3,535,000, or 23 cents per diluted share, for the corresponding period of 2005. Excluding a third quarter 2005 litigation-related charge, and after an adjustment to the tax provision, the company's third quarter 2005 non-GAAP net income was $346,000, or 2 cents per diluted share.
