Charles & Colvard Reports Record Quarterly Sales of $11.3 Million

Charles & Colvard, Ltd., the moissanite makers reported a doubling of sales in the third quarter to $11.3 million and net income of $2,238,000 or $.15 per diluted share. This is a 118 percent increase over last year's third quarter sales of $5.2 million, a 372 percent increase versus last year's third quarter operating income of $659,000, and a 639 percent increase versus last year's net income of $303,000.

Bob Thomas, President and Chief Executive Officer stated, "Our 132 percent increase in domestic sales is a result of obtaining increased acceptance of our beautiful jewel as a new category of jewelry for consumers. I am pleased with these sales levels and our ability to generate net income that represents 20 percent of total sales."

Sales for the nine months of the fiscal year aggregated $31.9 million on shipments of 186,000 carats. Net income for the first nine months of 2005 was $4,990,000 or $.33 per diluted share. Year-to-date sales are 110 percent ahead of first nine month 2004 sales of $15.2 million on shipments of 86,000 carats. Nine months 2005 net income was 335 percent above 2004 net income of $1,147,000 or $.08 per diluted share.

Moissanite is a created jewel used in fine jewelry.