Net income decreased by 45.7 percent to $9,429,000 for Nautilus in the 1st quarter, ended March 31. The results are better than those of the 4th quarter of 2005 on the same amount of sales, reflecting the effects of a 6-point plan launched in the 2nd part of last year to improve margins and operating results. In the 1st quarter of 2006, the gross margin fell by 620 basis points to 42.9 percent, but sales were up by 18 percent to $185.0 million. Retail sales jumped by 38 percent, the turnover from specialty retail increased by 6 percent and commercial sales rose by 5 percent, while direct sales to consumers slid by 2 percent to $83.7 million. Outside of the USA turnover was up by 4 percent to $15.5 million. Pearl Izumi’s sales grew by 8 percent to $19.4 million.