Nautilus is said to searching for a “modest” new acquisition while spending more time developing its international business by working more closely with distributors in key regions. The company saw its net income from continuing operations leap to $47.9 million last year from $16.9 million the year before as total sales rose by 12.8 percent to $218.8 million, delivering an improvement of 1.7 percentage points in the gross margin to 48.7 percent. In the Retail segment, sales and operating earnings went up by 20.2 percent and 45.5 percent, respectively, due to a good response to new cardio products offered under the Schwinn brand. Slower growth rates were recorded in the Direct segment, but Nautilus is banking this year on the introduction of the Bowflex Max Trainer, a combination of an elliptical machine and a Stairmaster that engages the upper body 80 percent more than a typical elliptical.

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