Gaiam, Inc. revenue for the first quarter ended March 31 increased 11.2% to $62.2 million from $55.9 million recorded in the same period last year. The increase in net revenue, which was solely comprised of internal growth, was mostly driven by the business segment which grew 20.7% and continued growth in the solar segment, partially offset by further planned reductions in catalog circulation and the closure of an unprofitable business in the direct to consumer segment.


Gross margins shrank to 51.8% of net revenue for the first quarter from 55.4% of net revenue in Q1 last year, due to increased revenues in the lower margin solar segment.


The company posted a net loss of $250,000 for the first quarter of 2010, or 1 cent per share, compared to a net loss of $3.1 million or 13 cents per share for the first quarter of 2009.


In the first quarter, fitness media grew nearly 4%, a meager percentage compared to what company guidance expects through the launch of Gaiam’s Reebok, fitness media project geared to hit Target stores in June of the current fiscal year.  Through the venture, Gaiam expects to gain revenue and market share. “Overall, we're excited about the new Reebok product line we created with the Reebok team,” said Lynn Powers, Gaiam’s president and CEO. “The result is improved product, packaging and innovation with respect to the breadth and depth of the product offering.”