VANCOUVER, Wash. -- Vancouver, Wash.-based Nautilus Inc. lost $8.9 million in the three months ending June 30, down from a profit of $1.1 million during the same period a year ago.

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Bowflex Power Pro and Bowflex Ultimate Fitness Machines

The fitness equipment maker of Bowflex, StairMaster and Schwinn Fitness machines employs about 450 people at its Vancouver headquarters.

Nautilus spent $6.6 million on restructuring and other one-time costs in the second quarter. Nautilus also stopped offering deep discounts and subsidized loans to buyers who call to place a direct order, which contributed to a 7.3 percent drop in sales to $95.5 million in the quarter.

These decisions put Nautilus in the red, and the company predicts more losses through 2008.