Decorize posts quarterly loss

The supplier and manufacturer of home accents on Feb. 13 reported results for its fiscal-year 2006 second quarter, ended Dec. 31.

Open sales orders grew 116 percent during the quarter, due partly to record-breaking orders taken in October at the International Home Furnishings Market in High Point, N.C. Year-over-year sales orders in the independent sales channel more than doubled.

Quarterly revenue was $1.6 million, bringing in $479,000 in gross profit, but Decorize still reported a $700,000 loss for the quarter because of lower sales volume.

“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,” said Steve Crowder, CEO, in a news release. “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.”

Warrant-holders throughout the year exercised their warrants in exchange for 2.1 million common shares of Decorize, providing additional capital to expedite product delivery, Crowder said in the release. The exchanges also showed shareholders’ confidence in the direction the company is headed, he said.

Shares of company stock (AMEX: DCZ) closed Feb. 17 at 47 cents, compared to a 52-week range of 40 cents to 81 cents.