MEDWAY, MA -- Cybex International Inc. reported second quarter 2010 net sales of $27.7 million, a net loss of $0.4 million from the same period last year when the company reported $27.8 million, according to financials released today.
That loss was better than the second quarter 2009 loss, which was $2.1 million.
For the six months ended June 26, 2010, net sales were $53.8 million compared to $56.7 million for 2009. The loss for the six months was $1.1 million compared to a net loss of $3.5 million for the same six months in 2009.
John Aglialoro, chairman and CEO of Cybex, Medway, MA, attributed the stabilization to management decisions undertaken in the last six quarters.
“We’ve invested heavily in marketing, going against the tide of our competitors,” Aglialoro said in a conference call with stockholders and analysts today. “We see it as a way to improve our branding and penetration in the marketplaces we serve.”
Part of those marketing efforts includes promoting the Cybex Arc Trainer as a product that will make the elliptical obsolete. In that vein, the company recently signed a contract with the NBC reality TV show “The Biggest Loser” to use the Arc Trainers rather than ellipticals in the fall season of the show, Aglialoro said.
He also mentioned that the company’s move to concentrate more heavily on the university, military, and fire and police markets was a factor in the stabilization. He hired consultants with experience in these markets to better reach these sectors. The company still maintains a presence in the health club market, but that segment has faced more pressure lately from low-priced clubs, which has led to reduced spending in this market, he said.
Cybex’s sales people have concentrated on using financing to get sales during the quarter, Aglialoro said.
North American sales were down 5 percent in the quarter compared to second quarter 2009, according to Art Hicks, president and COO, who also participated on the call. International sales were up by 12 percent.
Cardio sales were $15.7 million in the quarter. Arc Trainers made up $6.9 million of that. Overall cardio sales in second quarter 2009 had been $15.8 million, with Arc Trainer sales accounting for $7 million of that, according to Hicks.
Strength sales in second quarter 2010 were $9.2 million compared to $9.3 million in the same period 2009.
Aglialoro said the company is still investing in research and development and will have a new treadmill for release at the end of the year.