November 7, 2011 - Nautilus, Inc. (NYSE: NLS) reported today its unaudited operating results for the third quarter ended September 30, 2011. All information regarding the Company's operating results, unless otherwise noted, pertains to its continuing operations, which include the Direct and Retail fitness segments. The Company's former commercial fitness business is reported as a discontinued operation.

Net sales for the third quarter ended September 30, 2011 totaled $37.4 million, a decline of 2.8% as compared to net sales of $38.5 million for the same quarter in 2010. For the nine months ended September 30, 2011, net sales increased to $120.4 million, an increase of 4.9% as compared to net sales of $114.8 million for the same period in 2010.

Income from continuing operations for the third quarter ended September 30, 2011 was $0.3 million, compared to a loss from continuing operations of $2.4 million for the 2010 third quarter. Diluted income per share from continuing operations for the third quarter of 2011 was $0.01, compared to a diluted loss per share of $(0.08) for the same quarter a year ago. The significant improvement in results from continuing operations was primarily due to a 16.8% reduction in operating expenses achieved principally through more efficient advertising expenditures. Selling and marketing expenses for the 2011 third quarter, as a percent of net sales, declined to 30.8% from 37.3% for the comparable 2010 period.

Bruce M. Cazenave, Chief Executive Officer, stated, "Despite a continued challenging consumer sales environment, we are pleased that revenues in our direct business continue to grow, reflecting solid demand for our products. Improvement in overall profitability during the quarter resulted from achieving further operating expense efficiencies through disciplined cost controls and more efficient and effective media expenditures. Given our management team's refocused efforts to bring more new and innovative products to market, we made a number of moves during the quarter to expand our product development resources and capabilities."

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