Cybex International, Inc. reported sales for the first quarter fell 27.0% to $28.9 million for the period through March 28, compared to revenues of $39.8 million in the year-ago period. Management said the sales decline was due primarily to fitness clubs and exercise facilities delaying purchases in response to a weak economy.
The manufacturer of exercise equipment reported a net loss of $1.4 million, or 8 cents per diluted share, compared to a net income of $1.3 million, or 7 cents per diluted share, in the first quarter of 2008.
By product segment, cardio equipment revenues fell 25.0% to $15.2 million from $20.2 million in the year-ago period, while sales of strength equipment dropped 36.0% to $10.3 million from $16.1 million in the year ago period. By region, International sales fell 22.0% to $8.0 million while sales in North America fell 29.0% to $20.9 million.
Margins were negatively affected by a variety of factors, including lower volume and the increasing cost of steel.
Due to falling sales, management noted that the company had cut its workforce by 5% while also implementing cost cutting measures in the sales, marketing, and R & D departments.
