LKI Estimates 44% Sales Decrease in 2Q
January 18, 10
Lazare Kaplan International (LKI) announced Friday that it filed a notification of late filing with the Securities and Exchange Commission, delaying the diamond manufacturing and distribution company’s release of its quarterly report for the quarter ended November 30, 2009.
LKI said it has been unable to finalize its financial statements due to two unresolved matters: the collectability and recovery of certain assets and the company's potential obligations under certain lines of credit and a guaranty.
The company did, however, provide a “reasonable estimate” for its second quarter net sales. LKI anticipates net sales of approximately $97.2 million and $23.0 million for the six and three months ended November 30, 2009 as compared to net sales of $119.6 million and $41.3 million for the comparative prior year periods.
The significant declines, the company stated, come “in light of current adverse market conditions impacting the company and the global diamond and jewelry industry.”
This the second time in the recent months that LKI has been unable to post its results. LKI had failed to submit its annual report for the fiscal year ending May 31, 2009 and had been handed a Deficiency Letter by the NYSE on September 16. The company then submitted to the exchange a plan outlining the steps it will take to bring LKI back into compliance.