Tel Aviv: Sarine Technologies Ltd’s 5% increase in Group revenue y-o-y for the first quarter ended 31 March 2017 is attributed to good manufacturing pick up once again in the diamond industry.
“Backed by healthy level of manufacturing activities in the diamond industry, Sarine recorded higher revenue of US$ 16.3 million in Q1 2017 from increased capital equipment sales and higher recurring revenues” according to the company's report.
While Sarine’s gross profit rose 6% to $ 11.1 mn and gross profit margin remained stable at 68%; profit from operations fell 14% to $3.2 mn in Q1 2017 from $3.7 mn in Q1 2016. This is attributed to an increase of operating expenses “compounded” by the strengthening of the Israeli NIS against the US dollar. The Group registered a drop in Q1 2017 net profit to $ 2.5 mn.
The market penetration of Sarine Profile is continuing apace, the Company indicated, particularly in the Asia Pacific (APAC) region.
Projecting into the immediate future, the Company said that next on the anvil are Sarine’s new technologies for clarity and colour grading for polished diamonds. “These new technologies will address the $ 500 mn a year 4Cs grading market. These technologies are currently undergoing large scale testing in India and the Group expects the commercialisation of these new services in Q3 2017.”
