Sarine’s Q1 Net Profit Up 27% To $3.1 Mn

Solitaire - - SPECTRUM -

Sarine Group recorded higher rev­enues of $16.7 mil­lion in Q1 2018. Year-on-year im­prove­ment was mar­ginal, but is still note­wor­thy as recurring rev­enues con­tin­ued to climb even as the quan­ti­ties of rough stones en­ter­ing the pipe­line de­clined by 10%, com­pared to the cor­re­spond­ing pe­riod in 2017. The sig­nif­i­cant growth in rev­enue on a se­quen­tial quar­terly ba­sis, driven by higher equip­ment sales and in­creased recurring in­come, re­flects re­newed ro­bust ac­tiv­i­ties in In­dia’s mid­stream di­a­mond man­u­fac­tur­ing sec­tor.

Dur­ing the quar­ter, the Group de­liv­ered 12 Galaxy® fam­ily sys­tems to cus­tomers, com­pris­ing five of the new Me­te­orite™ model, five of the Me­teor™ model, one Galaxy® and one Galaxy® XL. No­tably, all but the Galaxy® XL were de­liv­ered to cus­tomers in In­dia, in­dica­tive of the Group’s grow­ing con­tain­ment of the il­licit com­pe­ti­tion’s ac­tiv­i­ties. With the in­stalled base of Galaxy® fam­ily sys­tems ex­panded to 357 units as of March 31st, 2018, over­all re­cur­rent in­come rep­re­sented about 45% of Group rev­enue. Pol­ished di­a­mond re­tail-re­lated rev­enue seg­ment ac­counted for 2% of rev­enue in Q1 2018.

Buoyed by higher sales, gross profit rose to US$11.4 mil­lion and gross profit mar­gin im­proved to 68%. With higher rev­enue and well-man­aged op­er­at­ing ex­penses, net profit for the pe­riod rose 27% to $ 3.1 mil­lion. The Group ex­pects to con­tinue to ac­cel­er­ate the ex­pan­sion of sales pro­grammes util­is­ing Sarine Pro­file™ with a goal to dou­ble the num­ber of stones scanned in 2017 this year. Fol­low­ing its ac­tive mar­ket­ing ef­forts, the Group is ac­quir­ing nu­mer­ous new cus­tomers in the Asia Pa­cific (APAC) re­gion as well as ini­ti­at­ing new and ex­panded pro­grams with ex­ist­ing cus­tomers.

Fol­low­ing the open­ing of the Sarine Tech­nol­ogy Lab on Fe­bru­ary 18th, 2018 to pro­vide the first-ever tech­nol­o­gyen­abled ar­ti­fi­cial-in­tel­li­gence-based 4Cs di­a­mond re­ports, K-Uno, a key high-end Ja­panese re­tailer, an­nounced in mid- April the adop­tion of the Group’s new re­ports. This unique ground­break­ing so­lu­tion pro­vided by the Group has been met with en­thu­si­as­tic mar­ket re­sponse. Ad­di­tional key re­tail­ers in the APAC mar­ket are plan­ning on launch­ing pro­grammes adopt­ing Sarine’s re­ports, as soon as the nec­es­sary lo­gis­tics in­fra­struc­ture is put in place.

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