Nautilus 2007 Annual Report Download - page 9

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Table of Contents
International Equipment Business
Our International Equipment Business primarily consists of sales of commercial products that are manufactured in our Virginia and Oklahoma
manufacturing facilities. We utilize our Asian suppliers to manufacture our retail products and several commercial products. Products are
shipped to customers outside the Americas primarily from a third party distribution facility in the Netherlands.
BACKLOG
Historically backlog has not been a significant factor in the Company’s business.
COMPETITION
The markets for all of our products are highly competitive. Our competitors vary by market and sales channel as discussed below. We believe the
principal competitive factors affecting our business are quality and innovation combined with of our well-recognized brand names enhanced by
our brand marketing awareness programs. Other principle factors contributing to our ability to stay competitive include pricing strategy with key
products and dependable customer service. We believe this combination of factors will allow us to remain competitive in all of our current
fitness equipment markets.
Direct Fitness Equipment:
We primarily sell our Bowflex strength and cardiovascular fitness products in this market. Our direct-marketed
brands compete directly with a large number of companies that manufacture, market and distribute home fitness equipment. Our principal direct
competitors include Fitness Quest and ICON Health & Fitness .
Commercial Fitness Equipment: Our Nautilus, Schwinn Fitness, and StairMaster brands compete against products of other commercial fitness
equipment companies such as Life Fitness (Brunswick) , Precor (Amer Sports) , Cybex and TechnoGym .
Retail Fitness Equipment:
Our Nautilus, Schwinn Fitness, StairMaster, and Bowflex brands compete against the products of other retail fitness
equipment companies such as Johnson Health Tech, ICON Health & Fitness and many others.
In our International Equipment Business, our Nautilus, Schwinn Fitness, StairMaster, and Bowflex brands compete against the products of such
companies as Life Fitness , Johnson Health Tech, Cybex , StarTrac , Precor , and TechnoGym .
EMPLOYEES
As of February 28, 2008, we employed approximately 1,262 employees, excluding 223 employees of Pearl Izumi, as the Company made a
decision to exit this business. Management considers its relationship with employees to be good. None of our employees are subject to any
collective bargaining agreements. There has never been a material interruption of operations due to labor disruptions.
SIGNIFICANT CUSTOMERS
We had no individual customers that accounted for 10 percent or more of our consolidated net sales during fiscal 2007, 2006, and 2005.
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