SPRINGFIELD, Mo., Feb. 13, 2006 (PRIMEZONE) -- Decorize, Inc. (AMEX:DCZ), a leading supplier and manufacturer of home accents, reported today that the Company's open sales orders grew 116% during the second quarter of fiscal 2006. This dramatic rise is due in part to record-breaking orders that were taken at the Market in High Point, NC. Also, year over year sales orders in the independent retail sales channel have more than doubled.
Steve Crowder, Chief Executive Officer of Decorize, Inc., commented on the quarterly results by saying, "The changes that we at Decorize have implemented in our product design process, as well as improvements to our supply chain have resulted in significant sales growth. Although the increased order activity did not have a positive impact to our second quarter results, we anticipate the increased activity will lead to much stronger sales levels during the third quarter."
During the fiscal year, certain holders of warrants to purchase the company's shares have exercised their warrants in exchange for 2,125,000 common shares of Decorize. Crowder went on to say, "This show of confidence by major shareholders has confirmed the optimistic direction and progress that management has made to date. The proceeds from the exercising of these warrants have provided additional capital to expedite the delivery of our product."
The Company reported a loss for the quarter of $700,000, due to lower sales volume. Orders cannot be booked as sales until the products are delivered; therefore, the large quantity of orders that are currently being processed should have a more positive effect on results in the second half of the fiscal year.
Decorize, Inc., founded in 2000, is a recognized leader in the home accents industry. The company has developed a vertically integrated design, sourcing and logistics model that reduces costs traditionally channeled into home furnishings. Decorize has served more than 3,000 small and large retail accounts, including national brand names such as La-Z-Boy, Hancock Fabrics, May/Federated Stores, Neiman Marcus, Rooms To Go, and Sears - The Great Indoors.
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.