Cybex reported net sales for the third quarter increased 6.6% to $26.7 million from $25.0 million last year. However, a one-time, $4.1 million litigation-related charge caused the company to report a net loss of $3.5 million for Q3, or 23 cents per share, compared to a net income of $410,000 or 3 cents per share last year.
The bulk of the litigation charge came when a jury ruled that Cybex' Stableflex deck system infringed on a patent held by Gary Colassi, awarding him with $2.5 million in damages (See SEW_0536). Excluding the charge, the company's pro forma net income was $566,000 or 4 cents per fully diluted share, compared to net income of $378,000, or 3 cents per share, for the corresponding 2004 period.
