Message #25 From:
Stock News Bot Date: February 21, 2007 07:38:00 AM
DWRI News Design Within Reach, Inc. Becomes Current with SEC Filings
SAN FRANCISCO--(BUSINESS WIRE)--Design Within Reach, Inc. (Nasdaq:DWRI) today announced that it has filed its Quarterly Report on Form 10-Q for the third quarter ended September 30, 2006 with the Securities and Exchange Commission and complied with the February 20, 2007 filing deadline established by the Nasdaq Listing Qualifications Panel. The Company is now current in its filings and will notify The Nasdaq Stock Market that it is in compliance with the filing requirements for continued listing on The Nasdaq Global Market.
Design Within Reach announced preliminary third quarter financial results on November 14, 2006, and the financial statements included in the Form 10-Q did not reflect any material changes to the results previously reported.
In addition, the Company recently completed a loan agreement with Wells Fargo Retail Finance LLC, which replaced the loan with Wells Fargo HSBC Trade Bank, N.A. The new loan agreement provides for a $20.0 million senior secured revolving credit facility including letters of credit of up to $5.0 million with a term of five years. Borrowings under the facility are based upon a percentage of eligible inventory and accounts receivable less certain reserves. Design Within Reach believes that its new facility will be sufficient to fund operations and anticipated capital expenditures in 2007.
"We are pleased to have filed our Form 10-Q for the third quarter and to have met our filing requirements for continued listing on The Nasdaq Global Market," said Ray Brunner, Chief Executive Officer. "As we look forward, our intention is to continue building a foundation that will position Design Within Reach for long-term sustainable growth. Our new loan provides working capital, and we are improving our infrastructure to support the growth. Among other things, we have implemented a process to enhance our financial closing procedures, and we have completed improvements in our IMARC system, both of which help us remediate some of our previously reported weaknesses in internal controls.”
More information is available in Design Within Reach’s Form 10-Q filings, which are available on the Company's website at www.dwr.com and on the SEC's website at www.sec.gov.
About Design Within Reach, Inc.
Design Within Reach, Inc., founded in 1998 and headquartered in San Francisco, is an integrated multi-channel provider of distinctive modern design furnishings and accessories. The Company markets and sells its products to both residential and commercial customers nationwide through the DWR catalog, studios, website and direct sales force, and a single common “in stock and ready to ship” inventory.
“Design Within Reach” is a registered trademark of Design Within Reach, Inc.
This press release includes forward-looking statements, including statements related to anticipated revenues, expenses, earnings, operating cash flows, the outlook for Design Within Reach’s markets and the demand for its products. Factors that could cause Design Within Reach's actual results to differ materially from these forward-looking statements including the following: if we are unable to continue to increase our net sales while reducing our promotional discounts, our profitability may be impaired; if we fail to offer merchandise that our customers find attractive, the demand for our products may be limited; we do not have long-term vendor contracts and as a result we may not have continued or exclusive access to products that we sell; our business depends, in part, on factors affecting consumer spending that are not within our control; our business will be harmed if we are unable to implement our growth strategy successfully; the expansion of our studio operations could result in increased expenses with no guarantee of increased earnings; if we do not manage our inventory levels successfully, our operating results will be adversely affected; we depend on domestic and foreign vendors, some of which are our competitors, for timely and effective sourcing of our merchandise; declines in the value of the U.S. dollar relative to foreign currencies could adversely affect our operating results; and we face intense competition and if we are unable to compete effectively, we may not be able to achieve and maintain profitability. Please refer to our reports and filings with the Securities and Exchange Commission, including our latest Annual Report on Form 10-K and Quarterly Report on Form 10-Q, for a further discussion of these risks and uncertainties. We also caution you not to place undue reliance on forward-looking statements, which speak only as of the date they are made. We undertake no obligation to update publicly any forward-looking statements to reflect new information, events or circumstances after the date they were made or to reflect the occurrence of unanticipated events.
