Cybex Sales Drop
Resulting in part from litigation over a product liability judgment, exercise equipment manufacturer Cybex International Inc. reported a 5-percent decrease in net sales for the second quarter of 2012.
Net sales for the Medway-based company were $30.8 million, compared to $32.6 million the previous year. It reported a net loss of $1.2 million, or 7 cents per diluted share, compared to a net loss of $600,000, or 3 cents per diluted share, in 2011.
For the six months ended June 30, net sales were $68.1 million, compared to $63.6 million for 2011.
Cybex said the results include litigation charges of $1.3 million and $1.6 million for the quarter and six months ended June 25, 2011, respectively, and litigation charges of $30,000 and $63,000. The litigation was settled during the first quarter.
Moving forward, the company said it expects to improve profit margins, thanks partially to a new product line. President and COO Art Hicks said Cybex will roll out new, more affordable cardio equipment in the fourth quarter. He said profit margins continue to be negatively impacted by initial manufacturing costs of new products, but that profit margins are expected to improve in the fourth quarter.
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