The firm reported a net loss of $30.4 million, compared with a loss of $23.6 million, a year earlier. Net sales for the quarter ended March 31st fell 8.4 percent to $60.9 million from $66.5 million.
Analysts, on average, were expecting a loss of 40 cents a share for the quarter on about $53.1 million in sales.
"First-quarter sales and gross margin were generally on track with our expectations," said CEO Jeff Katz. "Our cash balance at quarter-end remained strong, and our new product milestones for 2007 and 2008 remain on plan."
The firm said it expects a modest sales decline from last year's total of $502.3 million, with softer sales in the first half of the year. Sales are expected pick up over the second half of the year as it implements a turnaround effort centred around the new FLY Fusion Line due for launch during the third-quarter.