Charles & Colvard Sales Decrease 44% in 2009

Charles & Colvard Ltd., the exclusive maker of diamond-like moissanite jewels, reported a net loss of $440,000 for the fourth quarter of 2009, compared to a net loss of $1.3 million in equivalent period of 2008. The gem maker’s results indicate it’s still struggling, but declining losses show signs of improvement.

Fourth quarter net sales by the company totaled $2.4 million, a 33 percent decrease compared to $3.5 million in the fourth quarter of 2008.

For the year ended December 31, 2009, net sales dropped 44 percent to $8.3 million, from $14.7 million in 2008. The company’s executives said the economic crisis had led many of Charles & Colvard’s retail partners to stop buying their trademark lab-created gems.

CEO Randy N. McCullough, who was appointed in November, indicated that the fourth-quarter loss was the company's smallest loss in 2009 and that the company generated positive cash flow from operations in the fourth quarter.

"This momentum, along with a strong cash position, will carry us into 2010 as our management team works closely with select major jewelry manufacturers to establish new exclusive supply relationships," McCullough said.