Cybex develops, manufactures and market strength and cardiovascular fitness equipment products for the commercial and consumer markets. As domestic fitness club memberships increased at a compounded 7.9% rate for the ten-year period ended 2004, Cybex revenues increased 10.7%, 14.3% and 10.8% in 2003, 2004 and 2005, respectively. (Revenue for 2003, 2004 and 2005 was $90.5M, $103.4M and $114.6M respectively)

The majority of Cybex sales occur within the heavy use commercial market where the company’s position is robust and improving. Typical customers in this market include fitness clubs such as Life Time Fitness, Gold’s Gym, 24-Hour Fitness, etc., community centers and YMCAs. Cybex also sells product to the light commercial market, which includes small fitness facilities, hotels, resorts, spas, corporate fitness centers and schools.

Golf Galaxy opened 11 new stores during the first six months of fiscal 2007. As of August 26, 2006, they operate 61 superstores in 24 states, e-Commerce websites and a catalog. A few more stores planned for the rest of the year. Many of there stores are located in midwestern and northeastern states where late spring and summer represent the peak of the golf season. It is possible the impact of seasonal fluctuations could change as they continue to expand into additional geographic regions. The Father’s Day holiday in June drives a significant seasonal sales increase, and sales also increase during the December holiday season, albeit to a lesser extent.

Due to the seasonal nature of their business, interim results are not necessarily indicative of results for the entire fiscal year. Net sales and net income are generally greatest during the first and second quarters of our fiscal year. Net sales for the second quarter of fiscal 2007 were $95.6 million, an increase of 37.4% compared with $69.6 million for the second quarter of fiscal 2006. Net sales for the first six months of fiscal 2007 were $178.2 million, an increase of 39.0%,
compared with $128.2 million for the same period of the prior fiscal year. The increase in net sales for both the fiscal second quarter and six month period ended August 26, 2006, resulted primarily from sales at new stores opened in the current or prior fiscal year, sales through The GolfWorks, which Golf Galaxy acquired on March 16, 2006; and, to a lesser degree, an increase in comparable store sales.

Volcom designs, markets and distributes clothing, accessories and related sports products in the United States and internationally. Its products include t-shirts, fleece, bottoms, tops, jackets, boardshorts, denim and outerwear. The company offers accessories for skateboarding, snowboarding, and surfing. It also offers other accessories such as hats, wallets, ties, belts, and bags.