Nautilus, Inc. reported that net sales for the second quarter rose 13.3 percent to $34.7 million, as compared to net sales of $30.6 million for the same quarter in 2010. The loss from continuing operations was $2.2 million, or a loss of 7 cents per diluted share, for the second quarter, an improvement of 68.6 percent, or $4.8 million, over loss from continuing operations of $7.0 million, or 23 cents per diluted share, for the same quarter in 2010.
The significant reduction in loss from continuing operations was primarily due to a 14.9 percent reduction in operating expenses achieved through more effective advertising expenditures, as well as higher sales and the associated gross margin. Selling and marketing expenses for the 2011 second quarter, as a percent of net sales, declined to 35.2 percent from 47.8 percent for the comparable 2010 period.
Bruce M. Cazenave, Chief Executive Officer, stated, “Our management team is pleased with this quarter’s marked improvement in operating results during our most seasonally challenging quarter. We continue to see improvement on a number of key internal metrics, such as credit approval rates, media efficiency and operating leverage. After just two months with Nautilus, I am encouraged with our prospects and have confidence in our ability to continue building on the positive momentum we have established.”
The company reported a net loss of $3.3 million for the second quarter ended June 30, 2011, an improvement of 69.5 percent, or $7.4 million, or 11 cents per diluted share, versus a net loss of $10.7 million, or 35 cents per diluted share, for the second quarter of 2010. The net loss for the 2011 second quarter included a loss from discontinued operation of $1.1 million, or 4 cents per diluted share, compared to a loss of $3.7 million, or 12 cents per diluted share, for the 2010 second quarter, as the company completed the divestiture of its former commercial business in April 2011.
