Decorize posts 1Q profit for first time

Decorize Inc. this morning reported a first-quarter profit for the first time in the Springfield-based company's history.

The fiscal first quarter, which ended Sept. 30, historically is the company's weakest, according to a news release.

Net profit for the quarter increased over $390,000, compared to a net loss of $371,000 in fiscal first-quarter 2008. Gross margins were 37.2 percent, up 880 basis points from 28.4 percent a year ago.

The first-quarter results follow Decorize's largest quarterly profit ever, posted in the fourth quarter of fiscal 2008.

"The global Decorize team was successful over the last six months in increasing sales, improving profitability and reducing inventories," Decorize CEO Steve Crowder said in the release. "As with everyone in this industry, we are challenged by reductions in consumer spending and retail store closings. However, we have a fully engaged, focused and informed global work force, which is constantly creating small wins in this challenging business environment."

Company shares (OTC: DCZI) closed Friday at 11 cents and were trading down at 8 cents as of 11 a.m. today. The 52-week range is 7 cents to 32 cents.