Nautilus, Inc. announced that, based upon preliminary information, it expects fourth quarter 2005 net sales in the range of $179 million to $183 million, with corresponding earnings per share in the 7 cents to 12 cents range. The company's previous fourth quarter 2005 guidance presented on November 2, 2005, estimated net sales of $210 million and earnings per share in the 44 cents tp 48 cents range.
“Our innovation-centered business model generated increasing consumer interest in our products again in the fourth quarter, helping us achieve net sales growth of 21 percent in fiscal 2005,” said Gregg Hammann, chairman and CEO. “However, we are experiencing growing pains in ramping innovation through the manufacturing side of our business, which resulted in delays in the introduction of new products that were expected to have significant sales and earnings in the fourth quarter. We are continuing to make progress in improving our manufacturing and operational capacity as we adjust to a fast pace of product innovation. We are closing gaps and improving efficiencies in each stage of our go-to-market process.”
NLS continues to expect 15% to 20% annualized sales growth, and 20% to 30% percent annualized earnings growth, through its 2006-08 strategic business plan.
