Nautilus Inc. (NYSE:NLS) reported higher revenue and narrowed its loss for the second quarter 2011.
The Vancouver-based home fitness equipment company reported second-quarter revenue up 13.3 percent to $34.7 million, versus revenue of $30.6 million during the same period a year ago.
The revenue rise came as Nautilus increased its direct sales by nearly 22 percent to 22.5 million, driven by demand for its TreadClimber products, company officials said. Retail sales slipped 3.4 percent to $11.4 million on lower elliptical sales despite a rise in strength-product sales – a reversal of recent trends. The shift was primarily due to a large shipment to one customer, officials said.
The higher sales and a 14.9 percent cut in operating expenses helped Nautilus narrow its quarterly net loss to $3.3 million, or a loss of $0.11 per diluted share, compared to net loss of $10.7 million, or a loss of $0.35 per diluted share, a year ago.
The net loss included a $1.1 million loss from Nautilus’ former commercial business, which went through its final divestiture from the company during the quarter, in April 2011.
As previously reported by SNEWS, Med-Fit Systems acquired Nautilus-brand commercial in Februay 2010, and Michael Bruno's Core Fitness acquired assets of StairMaster and of Schwinn commercial in January 2010.
"Our management team is pleased with this quarter's marked improvement in operating results during our most seasonally challenging quarter, Nautilus CEO Bruce Cazenave said in a statement. “We continue to see improvement on a number of key internal metrics, such as credit approval rates, media efficiency and operating leverage.”
Cazenave came on board with Nautilus May 30, 2011, more than halfway through the second quarter, and recently outlined his preliminary vision for the company in an interview with SNEWS.
-- Compiled by David Clucas
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