Cybex Q1 Net Sales Fall 27%

Cybex International, Inc. net sales for its first quarter ended March 28, 2009 decreased by 27% to $28.9 million compared to $39.8 million for the corresponding 2008 period. The company reported a net loss for the first quarter of 2009 of $1.4 million, or 8 cents per diluted share, compared to net income for the first quarter of 2008 of $1.3 million or 7 cents per diluted share.

John Aglialoro, CYBEX Chairman and CEO stated, “Q1 sales levels were obviously weak. We believe that a principal cause of the sales decline is customers, particularly fitness clubs and similar facilities, delaying purchases. While this is reflective of economic conditions, generally and in the fitness market, it makes financial projections even more difficult than usual. Margins were negatively affected in Q1 by a variety of factors, including lower volume and the pricing of raw material, especially steel, compared to the same period in 2008. We are projecting steel prices to be lower in Q2, which should help reduce our manufacturing costs. Management has been focused on expense reduction in response to economic conditions. Q1 SG&A was reduced by $1.7 million from the prior year period and our cost structure will continue to be adjusted to sales levels achieved…”