Phoenix Footwear turned around to a net profit of $261,000 in the first quarter of 2012 from a loss of $436,000 in the year-ago period as its sales jumped by 18.4 percent to $5.7 million, lifted by an increase of more than 45 percent in its SoftWalk brand. Nevertheless, the company said it was actively engaged in talks over its credit facility as it was in breach of loan covenants after posting a loss of $1.7 million for 2011 on 4 percent lower revenues of $15.9 million.