SPRINGFIELD, Mo., Nov. 15, 2006 (PRIMEZONE) -- Decorize, Inc. (AMEX:DCZ), a recognized leader in the home accents industry, filed its fiscal 2007 first quarter results with the Securities and Exchange Commission on Form 10-QSB yesterday. The Company reported a first quarter sales increase of 50%, with total sales for the quarter of $3.2 million versus $2.1 million in the prior year quarter. The Company attributed the strong increase in sales to expanded capacity in its wholly owned manufacturing facility in Indonesia. "We are beginning to see the results from the strategic investments we have made in our manufacturing facilities over the past 18 months," said Steve Crowder, Chief Executive Officer of Decorize. "We believe that our vertically integrated operational model has positioned us to become a market leader in the fragmented home accessory and accent furniture industry."
For the third consecutive quarter, the Company has posted improved sales and operating results over the previous year. The Company posted an operating loss of $186,000, a substantial improvement from the $446,000 loss reported in the year ago quarter. Currency exchange rates and a one time stock option expense accounted for $60,000 of the loss. "Strong demand for our products has continued and we anticipate solid revenue increases in the second quarter," said Crowder. "The improved financial results over the previous six quarters give us increasing confidence that Decorize is on course to demonstrate profitability in the near future."
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, Broyhill Furniture Industries, Bombay Company, Home Depot, 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.