Arctic Cat reported a net loss of $2.3 million, or $0.13 per diluted share, in the the first quarter of the 2011. That is an improvement of nearly $2.5 million over the same quarter last of 2010. So, how does that translate into a potentially good year for the company?

Arctic Cat always posts a net loss during the first quarter because of the seasonal nature of its core products. In order to judge the potential of the upcoming 2nd and 3rd quarters, where the company makes the majority of its money, you have to look at how low the losses are.

Despite the early loss, sales are up 18% over last year, fueled by the Prowler side-by-side. A low loss and improved sales across all product categories justifies saying that Arctic Cat is poised to have a good year.  No news yet whether new laws and regulations related to ATV insurance and safety will have an effect on this year’s sales in the latter part of this year.