Heelys, Inc. reported a net loss of $1.2 million, or ($0.04) per diluted share, in the first quarter of 2010. The company also reported a loss of $1.3 million, or ($0.05) per diluted share in the same quarter of 2009.

Heelys, Inc. reported a drop in revenue on a year over year basis, from $9.2 million in the first quarter of 2009 to $6.7 million in the quarter just ending. Gross margin in the first quarter of 2010 improved on a year over year basis to 47.9%, compared to 36.7% in the first quarter of 2009.

The management of Heelys, Inc. blamed the poor results on the weak economy and bad weather in many of the company’s markets.

“While the first quarter is always tough for us, the sluggish economy and record bad weather in the Northeast and Midwest made January and February especially difficult. Even so, we’ve continued to reduce general and administrative expenses and have improved our gross margin percentage,” said Tom Hansen, the CEO of Heelys, Inc.

Heelys, Inc, still has a strong balance sheet, and reported cash and cash equivalents of $67.9 million as of 3/31/2010, up sequentially from the $66.5 million reported at 12/31/2009.

For more information on the company, visit www.heelys.com