SPRINGFIELD, Mo., June 6, 2005 (PRIMEZONE) -- Decorize, Inc. (AMEX:DCZ) reported that for the quarter ending March 31, 2005, net revenues increased 2.8% versus the same period previous year and the company reduced their net loss 38% to $900,000 versus loss of $1.4 million for the same three month period.
The company also reported that for the nine months ending March 31, 2005, they had reduced their operating loss by $2 million for the first nine months of their fiscal year versus the previous year. For the nine months ending March, the company reported a loss of $1.5 million.
CEO Steve Crowder indicated the significant shift in the bottom line was the result of improved quality and production efficiencies and the cost savings in their company owned operations in China and Indonesia. "We believe that the upfront cost to get both those operations running has been realized. We are now in a full production and assembly operation in Indonesia and because our business model has completed its shift to full production in Asia, this year alone we realized a nine month reduction in operating expenses of $600,000. We expect this to accelerate. As a result, our large retailer business segment is poised for exceptional growth."
Decorize reported that higher operating margins for the last reporting quarter accounted for an 88% increase in gross profit versus the same quarter in the previous year. This is result of moving all production overseas and eliminating the underutilized domestic production capacity. In addition, the company has implemented formal systems and process improvements that resulted in better cost controls, production processes and improved quality. Returns for the last quarter were down $400,000 versus same period previous year.
About Decorize, Inc. Decorize, Inc. designs and manufactures 'Best in Class' home accent furniture and accessories. The company has developed a sourcing and logistics model that reduces various costs that have traditionally been channeled into the home furnishings category. Decorize has served more than 5,000 small and large retail accounts, including national brand names such as Dillard's, La-Z-Boy, Rooms To Go, and Sears -- The Great Indoors. Additional Information on the company and its products can be found at http://www.decorize.com.
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 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 in this release.