Sarine Posts Sharp Drops in Q4 Revenue and Profits

Finance and Trade
02/03/2016 07:30

Diamond manufacturing technology maker Sarine Technologies  posted a 32% drop in revenue to $12.4 million in the fourth quarter which ended December 31 due to declining levels of diamond manufacturing. Meanwhile, profits dropped even more – down 62% on the year to $1.5 million in the quarter. For all of 2015, revenue plunged 45% to $48.5 million and profits dropped 87% to $3.6 million.

"The sequential increase in revenues and return to profitability in Q4 2015 was primarily due to improved sentiment in the Indian diamond manufacturing industry, post the November Diwali holiday, as solid holiday season sales (an estimated 3% increase year-over-year in the U.S.) and reduced inventory of polished diamonds, as the result of the aforementioned subdued manufacturing activity throughout 2015, gave rise to 3%-5% increases in polished diamond prices," the firm said in a statement. "This, together with rough prices having been discounted some 15%-20% throughout the year, reinjected profitability into polishing activities."