Cybex Reports Double-Digit Increase in 2011 Sales
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Despite battling a $66 million judgment against it for most of 2011, Cybex International, Medway, MA, ended the year with a 14 percent increase in sales, the company announced. Net sales improved from $123 million in 2010 to $140.1 million in 2011.
“We are delighted that we were able to continue in the face of a major headwind to put new and innovative products out in the marketplace,” John Aglialoro, Cybex CEO said in a call with analysts on Wednesday. “We expect an improving revenue picture and performance going forward. With these handsome results, there’s no reason we can’t continue in this vein.”
The 2011 net income for Cybex also increased to $34.3 million from a net loss of $58.2 million in 2010.
For fourth quarter 2011, Cybex reported net sales of $43.1 million compared to $39.9 million in fourth quarter 2010, an 8 percent increase. Net income for the quarter was $34.7 million compared to a net loss of $57.1 million in fourth quarter 2010.
For fourth quarter 2011, cardio sales increased by 1 percent, strength increased by 16 percent and other sales were up by 23 percent.
Cybex’s new 770T treadmill has been outselling its 625 treadmill, which is a little less expensive, Art Hicks, president and COO, said in the call. He added that the higher sales for the 770T means the features built into the product are worth the extra cost to the customers. Cybex will phase out the 750 Arc Trainer and replace it with two models that have upper body and lower body motion, he said.
International sales were up 20 percent in the fourth quarter while North American sales were up 3 percent. Thirty percent of Cybex’s sales are international, Aglialoro said, but he expected the company to be up to 50 percent in international sales in the future.
Aglialoro credited the good financial performance despite the lawsuit to a good management team, led by Hicks, who made strides in marketing and product development.
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