The good news in Nautilus Inc.’s restatement of its 2005 results is that the company added $700,000 to its net sales figure. The bad news is that it also added $2 million in expenses.
On Feb. 3, the fitness products marketer reported fourth-quarter net sales of $181.3 million; cost of sales of $109.2 million; sales and marketing expenses of $49.6 million; and general and administrative expenses of $14 million.
But in papers filed March 14 with the Securities and Exchange Commission, the Vancouver, WA-based firm announced that its while its fourth-quarter sales were $700,000 higher than reported, it was adding $1.1 million to its cost of sales, $600,000 to its sales and marketing expenses, and $300,000 to its general and administrative expenditures.
Nautilus also reported that an enterprise resource planning system it had implemented during the fourth quarter did not perform as expected, and that inadequate testing and training resulted in insufficient resources being devoted to analysis and recording.
