Nova Lifestyle, Inc. Reports 2020 First Quarter Results
July 06 2020 - 4:00PM
Nova Lifestyle, Inc. (NASDAQ: NVFY) (“Nova LifeStyle” or the
“Company”) today announced financial results for the first quarter
ended March 31, 2020.
Key Financial Highlights:
- Net sales for three months ended March 31, 2020 were $2.2
million, a decrease of 75% from $8.7 million in the same period of
2019.
- Net loss for the three months ended March 31, 2020 was $(1.3)
million, as compared to a loss of $(147,000) in the same period of
2019.
The Company experienced significant adverse
impacts of COVID-19 and the related public health orders. The
Company’s two showrooms and warehouse in Kuala Lumpur have been
closed since March 18, 2020. The Los Angeles facility has been
closed since March 16, 2020. However, a skeleton staff worked in
that facility to receive shipping containers of products delivered
from the Company’s contract manufacturers and to ship products to
customers. On May 12, 2020, the Company's Kuala Lumpur office
reopened for business. The third-party contract manufacturers that
the Company utilizes in China were closed from the beginning of the
Lunar New Year Holiday through the beginning of March. Certain of
the Company’s new products are being sourced from manufacturers in
India and Malaysia starting in 2020. The factories in India and
Malaysia have suspended their operations as a result of the
COVID-19 pandemic during March through early May 2020. Currently,
the factories in both countries have resumed their operations.
Finally, the Company expects that the impact of the COVID-19
outbreak on the United States and world economies will have a
material adverse impact on the demand for its products.
Tawny Lam, Chairperson and Chief Executive
Officer of Nova LifeStyle, stated “During these unprecedented
times, our priority has been to safeguard the health and safety of
our employees while working closely with our customers that
required delivery of products. The global COVID-19 pandemic has
caused challenges throughout industry, from manufacturing to
logistics, but we believe we remain financially healthy with our
strong balance sheet and inventory levels that we believe will
allow us to serve our customers and fulfill all orders as the
pandemic subsides and the economy begins to pick up.”
About Nova LifeStyle Nova
LifeStyle, Inc. is a well-established, innovative designer and
distributor of modern lifestyle furniture; primarily sofas, dining
room furniture, cabinets, office furniture and related components,
bedroom furniture, and various accessories, in matching
collections. Nova LifeStyle’s product lines include the Nova Brands
and Diamond Sofa (www.diamondsofa.com). Nova's products feature
urban contemporary styles that integrate comfort and functionality,
incorporating upscale luxury designs which appeal to middle and
upper middle-income consumers in the USA, China, Europe, and
elsewhere in the world.
Visit Nova LifeStyle's website at
www.NovaLifeStyle.com.
Forward-Looking Statements
This press release may contain forward-looking
statements within the meaning of Section 27A of the Securities Act
of 1933, as amended, and Section 21E of the Securities Exchange Act
of 1934, as amended, including, among others, our ability to fully
resume our operations and remain financially healthy, our expected
future growth prospects. All statements other than statements of
historical fact are, or may be deemed to be, forward-looking
statements. In some cases, forward-looking statements can be
identified by the use of forward-looking terms such as
“anticipate,” “estimate,” “believe,” “continue,” “could,” “intend,”
“may,” “plan,” “potential,” “predict,” “should,” “will,” “expect,”
“objective,” “projection,” “forecast,” “goal,” “guidance,”
“outlook,” “effort,” “target,” “trajectory” or the negative of
these terms or other comparable terms. However, the absence of
these words does not mean that the statements are not
forward-looking. These forward-looking statements are based on
certain assumptions and analyses made by us in light of our
experience and our perception of historical trends, current
conditions and expected future developments, as well as other
factors we believe are appropriate in the circumstances.
Investor Relations ContactAndrew
Barwicki516-662-9461andrew@barwicki.comir@novalifestyle.com
Nova Lifestyle (NASDAQ:NVFY)
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