Sarine Q1 Revenue Drops 50%

(IDEX Online News) – Diamond toolmaker Sarine Technologies Ltd has said that challenges in the diamond manufacturing industry have affected its revenue in the first quarter of the year. Revenue dropped by 50 percent to $12.2 million for the quarter ended March 31 owing to lower sales of diamond manufacturing equipment and Galaxy-related income.

The company said that business sentiments were dampened by ongoing issues, primarily squeezed manufacturer margins due to high rough diamond prices relative to polished prices and weaker consumer demand across most markets outside the United States, as well as limited credit availability for second and third-tier Indian diamond manufacturers.

Overall recurring income declined approximately 20 percent and accounted for just over half of Q1 2015 revenue. Gross profit fell 55 percent to $8 million, with a reduced gross profit margin of 66 percent.

Sarine said that in order to support the launch of its new products and to establish essential sales and marketing infrastructures for its new polished diamond services and product offerings, additional sales and marketing expenses were incurred during the quarter and net profit decreased to $0.9 million.

“Despite the prevailing challenging business conditions in the immediate term, the group remains optimistic about the prospects of our new products and services based on Sarine Light and Sarine Loupe,” said CEO Uzi Levami.

“In view of the increasing popularity of digital trade visualization. solutions to complement traditional marketing methods, both online and in stores, we continue to expect growing demand for these technologies from manufacturers, gemological laboratories, wholesale and retail traders across the polished diamond value chain in 2015.”