SINGAPORE (May 13): Sarine Technologies, the manufacturer of equipment for grading diamonds and gems, reversed into a 1Q net loss of US$1.4 million ($1.9 million) from earnings of US$3.1 million a year ago.
Loss per share was 0.04 US cents versus earnings per share of 0.88 US cents in the first quarter of the previous year.
Group revenue fell 34% to US$10.9 million due to lower capital equipment sales and lower recurring income from inclusion mapping services.
Sarine attributed the loss to lower manufacturing activities in 1Q as India mid-market customers experienced working capital issues. Banks in India have been tightening credit policies and calling for the return of some of the already extended credit by March end of the fiscal year.
The emergence of lab-grown diamonds in the market and the ongoing US-China trade dispute also drove adverse sentiments in the industry's midstream.
No dividend has been recommended for 1Q.
Sarine Tech shares closed 0.5 cent lower at 34.5 cents on Friday.
