Nautilus, Inc.'s net sales for the fourth quarter ended December 31, 2006, were $199.3 million compared to $182.0 million for the corresponding period last year, up 10% and the largest single quarter in the company's history. Net income for the quarter was $12.9 million, or 41 cents per share, up from $2.0 million, or six cents per share, for the fourth quarter of 2005.

For the 12 months ended December 31, 2006, the company generated $681.5 million in net sales compared to $631.3 million in the fiscal year ended December 31, 2005, an 8 percent increase. Net income for fiscal year 2006 was $29.1 million or 90 cents per share, compared to $23.0 million or 68 cents in fiscal 2005.

Including pro forma adjustments (see table), 2006 net income was $26.1 million or 81 cents per share, compared to $21.4 million or 63 cents per share in 2005, an increase in earnings per share of 29%.

“We achieved record net sales for the fourth quarter and 2007, and are well positioned for solid top and bottom line growth in 2007 with an exciting pipeline of innovative fitness products and education across all channels of distribution,” said Gregg Hammann, Chairman and CEO of Nautilus, Inc.

“We are completing the transformation of our company's foundation with leading yet diverse brands, diversity in our channels of distribution, and diversity of our supply chain to prepare us for long-term sustainable growth. All of this heavy lifting has positioned us with a solid foundation for a sustainable rhythm of sales and earnings growth.”

For fiscal 2007, the company expects net sales growth of approximately 10 percent and diluted earnings growth of 20-30% from a 2006 pro forma base of 81 cents per share. For the first quarter of 2007, the Company estimates that net sales will be in the $185-195 million range, with expected earnings of 18 cents to 21 cents per diluted share.