SINGAPORE (May 15): Sarine Technologies, the manufacturer and seller of precision products for the evaluation, processing and grading of diamonds and gemstones, registered a 17.3% drop in 1Q17 earnings to US$2.5 million from a year ago.
Backed by healthy level of manufacturing activities in the diamond industry, Sarine recorded 5.1% higher revenue of US$16.3 million in 1Q17 from higher capital equipment sales and higher recurring revenues. However, group revenue was lower on a sequential quarterly basis due to fewer Galaxy deliveries led by the termination of the Meteor promotion at attractive introductory terms as of the end of December 2016.
The group delivered 17 Galaxy family systems, comprising 11 Meteor small stone machines, 5 Solaris machines and a Galaxy system, to customers in 1Q17, bringing the total installed base to 316 as of end March. Overall recurring income accounted for 42% of total revenue, with trade revenue derived from the polished diamond line of products and services representing about 2% of total revenue in 1Q17.
In line with increased revenue, gross profit rose 6% to US$11.1 million and gross profit margin remained stable at 68%. In order to support continued growth and the launch of new services, higher operating expenses were incurred in 1Q17. The increase in expenses was compounded by the 5% strengthening of the Shekel against the US dollar. As a result, profit from operations fell 14% to US$3.2 million in 1Q17 from US$3.7 million in 1Q16.
Shares of Sarine closed 2 cents higher at $1.94.
