Medway, MA — Cybex International Inc. reported third quarter 2008 net sales of $35.8 million compared to $32.6 million in third quarter 2007, but its net income for the quarter was $300,000 compared to $4.6 million for the same period last year.
The decrease in net income resulted from the company reducing the amount of money on reserve as a deferred tax valuation allowance in the third quarter of 2007, according to Cybex. That reduction then increased the Medway, MA-based company's net income by $5.2 million for third quarter 2007. In addition, the third quarter 2007 results included pre-tax charges of about $1.65 million for the relocation of the company's Owatonna, MN, facility, the estimated cost to repair certain treadmills built prior to 2002 and asset write-downs.
“The company is pleased that we were able to eke out a small profit on increased revenues for third quarter,” Cybex Chairman and CEO John Aglialoro said in a call with analysts. “I think it's no secret to anyone that clarity in the global marketplace is currently gripped with…fear or uncertainty, but we're bringing in orders.”
For the first nine months of 2008, net sales increased to $108.7 million compared to $102 million for the first nine months of 2007. Net income for the first nine months of 2008 was $1.8 million compared to net income of $6.8 million for the same period in 2007.
Although Aglialoro said he couldn't give clarity about future revenue generation, he says that the company is keeping busy. In fact, Cybex has a small backlog in its Medway plant, where it makes bikes and treadmills, and the company is backlogged by two or three weeks on its strength equipment in its Owatonna facility.
“While general economic conditions make short term results difficult to predict, we maintain a positive focus over the longer term,” he said.
The company continues to introduce new products. It plans to ship Next Generation Arcs, an improved commercial bike and expanded video display products by the end of the year, Aglialoro said.