Cybex International (Nasdaq: CYBI) reported higher sales and profit for the first quarter 2012, but company officials warned of slowing second-quarter sales.
The Medway, Mass. fitness equipment manufacturer said its latest quarterly revenue rose 20.2 percent to $37.3 million, compared to $31 million a year ago. Cybex’s first-quarter net income came in at $500,000, or 3 cents per diluted share, versus a net income of $300,000, or 2 cents per diluted share a year ago.
Cybex officials said the revenue boost was driven by sales of the company’s new 770T and 625T treadmill models introduced to consumers in the past six months.
Net income, while improved, was hampered some due to expected higher initial costs on the new products, Cybex President and Chief Operating Officer Art Hicks said in a statement with the earnings release. “We expect to be able to lower the costs of these products in the second half of 2012,” he said.
Despite the positive results for the first quarter, Cybex officials warned that the second quarter of this year might not be so bright.
“While optimistic for the long-term, we are experiencing a degree of sluggishness in Q2 orders, which we believe reflects the general economic uncertainty both in the USA and internationally,” Cybex Chairman and CEO John Aglialoro said.
Investors, who had pushed Cybex’s stock up more than 7 percent Tuesday, before the earnings report, then drove the stock down more than 13 percent in afterhours trading.
Additional insight from Wall Street on the fitness equipment industry will come later this week with earnings scheduled for Life Fitness and Hammer Strength parent Brunswick.