The quarterly net loss at the TreadClimber parent shrunk 69% to $3,268,000 from a loss of $10,705,000 for the period ended June 30. Revenues climbed 13% higher to $34,724,000 from $30,642,000 although gross margin dipped 210 b.p. to 41.9%, largely on mix issues. By channel, direct sales were 22% higher at $22.5 million; retail dipped 3% to $11.4 million and royalty income was 125% higher at $852,000 as NLS exercised more of its IP portfolio in elliptical equipment. There is likely to be continued pressure on product costs in the near-term. But any price hikes will be passed onto consumers.

In ... Log in to view full article.