Descente Ltd. posted a 9.9% decrease in revenues for the fiscal first quarter.  Total consolidated worldwide revenues were ¥15.26 billion ($157 mm) for the fiscal quarter ended June 30, compared to ¥16.94 billion ($162 mm) in the year-ago quarter. 

Gross margins contracted about 220 basis points to 45.9% of sales in the fiscal first quarter.  SG&A expenses, which declined 5.3% for the quarter, increased 230 basis points as a percent of sales to 47.2% of sales in the period.

The company posted a net loss of ¥178 million ($2 mm) in the fiscal first quarter versus net income of ¥474 million ($5 mm) the year-ago quarter.
The company still expects to post a net profit of ¥2.0 billion for the year versus year-ago net income of ¥2.2 billion.  Revenues are expected to rise slightly (+1.2%) to ¥78 billion.

Inventories at quarter-end were up 10.1% to ¥13.9 billion ($145 mm).