The pandemic continues to cause wreck havoc for the contract furnishings industry. Inscape Thursday reported sales for the second quarter of fiscal 2021 were $7.2 million, down 69.3% compared to $23.3 million for the same period of fiscal 2020. Net loss for the second quarter of fiscal 2021 was $3.7 million or negative $0.26 per diluted share, compared to net income of $0.4 million or positive $0.03 per diluted share for fiscal 2020. Non-GAAP EBITDA for the second quarter was negative $2.7 million, compared to positive $1.2 million, for fiscal 2020.
“Second Quarter Fiscal Year 2021 results reflect the challenging environment we find ourselves operating in given the COVID-19 pandemic,” said Eric Ehgoetz, CEO. “Management used this environment to launch our new Aria Pronto quick ship wall product in response to the continuing expectations of increased physical separation for work environments. In addition, our team continued with its efforts during the quarter to bring a B2C solution to the work-from-home (WFH) market, culminating in the launch of myinscapehome.com on November 30th and the introduction of our RockIt@Home desk products directly to the consumer marketplace. While there continue 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. 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.”
Sales for the six months ended October 31, 2020, were $18.5 million, compared to $44.0 million for the same period of fiscal 2020. Net loss for the six month periods ended October 31, 2020, and 2019 were $0.4 million or negative $0.02 per diluted share for both years. Non-GAAP EBITDA for the six months ended October 31, 2020, was $1.7 million, compared to $1.4 million for fiscal 2020.
Total sales for the six months ended October 31, 2020, were $18.5 million, compared to $44.0 million for the same period of fiscal 2020. Net loss for the six month periods ended October 31, 2020, and 2019 were $0.4 million or negative $0.02 per diluted share for both years. Non-GAAP EBITDA for the six months ended October 31, 2020, was $1.7 million, compared to $1.4 million for fiscal 2020.
Gross profit margin for the three and six months ended October 31, 2020 decreased by 25.8 and 8.7 percentage points, respectively, over the same periods last year as a result of the lower sales volume due to COVID-19. In addition, for the three and six months ended October 31, 2020, excess inventory totaling $602 and $689, respectively, relating to discontinued product lines and obsolescence were written off during the periods. The Company will continue to identify initiatives to achieve cost efficiencies and improved margins as sales levels return to normal.
SG&A for the three and six months ended October 31, 2020 were 71.4% and 52.6% of sales, compared to 27.9% and 31.3% for the same periods of last year. The $1.4 million and $4.0 million decrease in SG&A results from workforce reductions, decrease in marketing initiatives and lower selling, travel and entertainment expenses. Cumulatively, these results are largely the effect of measures adopted to manage costs during COVID-19. Lower sales volumes impacted the overall higher SG&A to sales ratio.
At the end of the quarter, the Company had cash totaling $2.5 million, no debt and an unused credit facility with borrowing availability of $3.2 million based on the credit terms.