Net income slipped 63% to $928,000 from $2,489,000 in the second quarter, NLS’ smallest, on revenues that declined 2% to $75,498,000 from $77,029,000 on lower Direct sales despite stronger Retail segment sales to mass retailers. Overall gross margin contracted 520 basis points to 44.6% blamed on higher material and production costs from unfavorable foreign exchange rate shifts. Despite the tepid quarter, Nautilus was encouraged by coming new product introductions to raise its full year revenue guidance by $3 million to a range of $431 to $440 million. Operating income is still forecast to come in at $42 to $45 million. ... Log in to view full article.