LOS ANGELES, Nov. 20, 2020 (GLOBE NEWSWIRE) — Nova LifeStyle, Inc. (NASDAQ: NVFY) (“Nova LifeStyle” or the “Firm”) right this moment introduced its monetary outcomes for the third quarter ended September 30, 2020.
Key Monetary Highlights:
Working Outcomes for the Three Months Ended September 30, 2020
Internet gross sales for the three months ended September 30, 2020 have been $3.3 million, as in comparison with $7.7 million in the identical interval of 2019.
Value of gross sales for the three months ended September 30, 2020 have been $9.9 million, as in comparison with $6.1 million in the identical interval of 2019. Value of gross sales features a write down of $7.77 million of our slow-moving stock, primarily Jade mats in Malaysia, to the decrease of value and web realizable worth within the third quarter of 2020.
Loss from operations for the three months ended September 30, 2020 was $8.2 million, as in comparison with $272 thousand in the identical interval in 2019.
Working Outcomes for the 9 Months Ended September 30, 2020
Internet gross sales for the 9 month interval ended September 30, 2020 have been $7.8 million, in comparison with $19.5 million in the identical interval 2019.
Value of gross sales for the 9 month interval ended September 30, 2020 have been $12.8 million, in comparison with $15.3 million in the identical interval of 2019. Value of gross sales features a write down of $7.77 million of our slow-moving stock, primarily Jade mats in Malaysia, to the decrease of value and web realizable worth within the third quarter of 2020.
Loss from operations for the 9 months ended September 30, 2020 was $9.6 million, in comparison with $1.4 million in the identical interval in 2019.
At September 30, 2020, our money and money equivalents steadiness was $9.4 million.
On August 28, 2020, Malaysia authorities prolonged the shutdown order to all enterprise till December 31, 2020. The Firm is continuous to expertise decreased demand for its merchandise and an elevated stage of buy order cancellations on account of the COVID-19 pandemic. Merchandise shipped from Asia have skilled vital delays in addition to a rise in prices of transport because the onset of the pandemic. We could expertise transport disruptions sooner or later. Lastly, the Firm expects that the affect of the COVID-19 outbreak on america and world economies will proceed to have a fabric hostile affect on the demand for its merchandise.
Tawny Lam, Chairperson and Chief Govt Officer of Nova LifeStyle, said, “The affect of COVID-19 continues to pose challenges for our provide chain and retailers on a world foundation. In essentially the most not too long ago accomplished fiscal quarter, we skilled a decline in gross sales resulting from our prospects’ closing their retail shops, quickly or in any other case. However, we imagine that our give attention to liquidity over the previous a number of years has allowed us to construct a sustainable liquidity place to navigate the present COVID-19 setting. We’re executing our transformation plan and imagine larger margin furnishings strains are repositioning the Firm for long-term success. Whereas the uncertainty in our working setting persists and can proceed to take action within the foreseeable future, we are going to proceed executing on our technique to maintain our enterprise.”
About Nova LifeStyle
Nova LifeStyle, Inc. is a well-established, progressive designer and distributor of contemporary life-style furnishings; primarily sofas, eating room furnishings, cupboards, workplace furnishings and associated elements, bed room furnishings, jade mats and numerous equipment, in matching collections. Nova LifeStyle’s product strains embody the Nova Manufacturers and Diamond Couch (www.diamondsofa.com). Nova’s merchandise function city modern kinds that combine consolation and performance, incorporating upscale luxurious designs which enchantment to center and higher middle-income customers within the USA, China, Europe, and elsewhere on this planet.
Go to Nova LifeStyle’s web site at www.NovaLifeStyle.com.
This press launch could comprise forward-looking statements throughout the that means of Part 27A of the Securities Act of 1933, as amended, and Part 21E of the Securities Trade Act of 1934, as amended, together with, amongst others, our skill to totally resume our operations and stay financially wholesome, our anticipated future progress prospects. All statements aside from statements of historic reality are, or could also be deemed to be, forward-looking statements. In some circumstances, forward-looking statements will be recognized by means of forward-looking phrases akin to “anticipate,” “estimate,” “imagine,” “proceed,” “might,” “intend,” “could,” “plan,” “potential,” “predict,” “ought to,” “will,” “count on,” “goal,” “projection,” “forecast,” “objective,” “steerage,” “outlook,” “effort,” “goal,” “trajectory,” “focus,” “work to,” “try,” “pursue,” or the unfavorable of those phrases or different comparable phrases. Nonetheless, the absence of those phrases doesn’t imply that the statements will not be forward-looking. These forward-looking statements are primarily based on sure assumptions and analyses made by us in gentle of our expertise and our notion of historic tendencies, present circumstances and anticipated future developments, in addition to different components we imagine are acceptable within the circumstances.
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