Decorize closes 2Q with net loss

The Springfield-based company had a $90,000 operating loss in the quarter ended Dec. 31, up from a $190,000 loss in the first quarter, but down from a $270,000 operating profit in second-quarter fiscal 2007, according to its quarterly report filed Feb. 14. Decorize’s fiscal year ends June 30.

The company had an overall net loss of $290,000, down from net income that topped $51,000 in second-quarter 2007.

Net sales for the quarter were $3.5 million, down $1 million from $4.5 million the same period a year ago.

Officials attribute the decline in sales to a $1.7 million drop in large retailer revenue, because larger retailers have longer sales cycles, leading to more sporadic sales in that segment, according to the report. Revenues from specialty retailers, meanwhile, were up by $700,000.

Decorize coupled its earnings release with a report that new sales orders for its GuildMaster brand grew 80 percent at recent furniture markets in Atlanta, Dallas and Las Vegas, according to a news release. Manufacturers including Ashley Furniture and retailers including Pottery Barn have introduced Decorize products in their stores over the last few months, the release said.

Decorize shares (OTC: DCZ) closed Tuesday at 20 cents, compared to a 52-week range of 14 cents to 87 cents.