Decorize reports first yearly operating profit

Decorize had an operating profit of about $40,000 for the year – a vast improvement from the $1.6 million operating loss it recorded in fiscal 2006. But the Springfield-based home furnishings designer and manufacturer is still searching for its first year-end gains, after factoring $722,000 in other expenses produced a net loss of about $682,000 in fiscal 2007. Decorize had net losses of $2.2 million in 2006, $2.6 million in 2005 and $4.4 million in 2004, according to its three-year income statement.

Sales in 2007 were $15.9 million, up 72 percent from $9.2 million last year and ahead of the previous guidance of $15 million.

In a company news release, Decorize CEO Steve Crowder attributed the year’s sales increase and operating profit to three factors: customer-driven designs, a vertically integrated manufacturing platform that has eliminated costs in the supply chain and the engagement of employees through an employee stock-ownership program.

Company shares (OTC BB: DCZI.OB) for the year fell to 3 cents per share, compared to 12 cents per share in fiscal 2006.

Decorize has served more than 3,000 small and large retail accounts, including national brand names such as Stein Mart, Broyhill Furniture Industries, OfficeMax, Home Depot, May/Federated Stores, Neiman Marcus, Rooms To Go and Sears-The Great Indoors.