Decorize, Inc. Posts 15.6% Increase in Q1 Sales

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Decorize, Inc. (OTCBB:DCZI) a recognized leader in the home accents industry, today reported a 15.6% increase in sales, to $3,682,000, and an operating loss of $189,979 (approximately the same as the prior year) for the first quarter ended September 30, 2007.

What is most exceptional about our new operational mandate is that our customers are now seeing their custom orders built and delivered to their door in less than 45 days. That gives Decorize a definite edge in the marketplace.

    "The three non-recurring items that contributed to the loss for the quarter actually highlight changes in our infrastructure that will significantly benefit operations from this point forward. First, we moved into our new expanded plant in Merapi, Indonesia and experienced a necessary two-week halt in production. Square footage at the plant was increased by more than 50% and, importantly, our wholesale sales capacity has now been tripled. Also during the quarter, we were working on a new outsourced freight system that resulted in cost inefficiencies that have since been corrected. Lastly, in transitioning into our new bank line of credit from a former factoring arrangement, there were fees that should easily be recovered in the next months through lower interest costs," stated Steve Crowder, Chief Executive Officer of Decorize.

"Recently, we received purchase orders from large specialty retailers who have responded enthusiastically to the new lines we showcased at the Highpoint, North Carolina Market," noted Mr. Crowder. "What is most exceptional about our new operational mandate is that our customers are now seeing their custom orders built and delivered to their door in less than 45 days. That gives Decorize a definite edge in the marketplace."

About Decorize

Decorize, Inc. specializes in designing, manufacturing and delivering the finest premium home accents directly from its production facilities in Indonesia and China to retailers across the U.S. The company has developed a vertically integrated design, sourcing and logistics model that reduces costs traditionally channeled into home furnishings. Decorize serves more than 3,000 retail accounts, including national brand names such as Stein Mart, Broyhill Furniture Industries, Office Max, Home Depot, May/Federated Stores, Neiman Marcus, Rooms To Go, and Sears-The Great Indoors. For more information, visit the Decorize web site at http://www.decorize.com.

Safe Harbor

Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995: Statements about the future performance of Decorize, economic trends, and other forward-looking statements in this release are made pursuant to the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995. Investors are cautioned that such forward-looking statements involve risks and uncertainties, including and without limitation, continued acceptance of Decorize's products, increased levels of competition for the company, new products and technological changes, Decorize's dependence on third-party suppliers, and other risks detailed from time to time in Decorize's periodic reports filed with the Securities and Exchange Commission. Decorize provides no assurance regarding the actual outcome of the events contemplated by any forward-looking statements included in this release.

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Steve Crowder, CEO
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