HOLLAND LANDING, Ontario -- Inscape, a manufacturer of workplace furniture, posted a $3.7 million loss in the second quarter of fiscal 2021, as sales dropped more than 200 percent during the COVID-19 pandemic to $7.2 million compared to $23.3 million for its second quarter in 2020.
Inscape’s sales for the six months ended Oct. 31, 2019, totaled $18.5 million, compared to $44.0 million for the same period of fiscal 2020. In spite of the huge sales dip, the company’s net loss for the half=way point of each fiscal was $400,000, partly due to a $2.8 million forgivable loan from the government to assist businesses during the coronavirus outbreak.
“Second quarter fiscal year 2021 results reflect the challenging environment we find ourselves operating in given the COVID-19 pandemic,” said Eric Ehgoetz, CEO of Inscape. He noted that Inscape has undertaken initiatives to bolster home office sales "to bring a B2C solution to the work-from-home market, culminating in the launch of myinscapehome.com on November 30 and of our RockIt@Home desk products directly to the consumer marketplace."
In addition, Inscape began its new Aria Pronto quick-ship program. Ehgoetz said the Aria wall product meets the market’s “continuing expectations of increased physical separation for work environments.”
“While there continues to be significant economic headwinds, we have seen an increase in production in both our factories and expect to see stronger results in the current quarter,” Ehgoetz said. “In addition, we continue our efforts to streamline operations and improve efficiencies, including the elimination of obsolete inventories, acceleration of efforts to reduce SKU’s, selling idle capital equipment and expediting a significant capital investment to improve our manufacturing capabilities in early 2021.”
Have something to say? Share your thoughts with us in the comments below.