Charles & Colvard reported a 20 percent increase in sales in the second quarter, but the Moissanite gemstone maker still posted a wider quarterly loss.
The company had a loss of $6.2 million, or 31 cents per share, in the quarter, compared to a loss of $500,000, or 2 cent per share, during the second quarter of 2013. The loss included a $4.2 million tax expense related to deferred assets.
The company’s shares were down about 9 percent in afternoon trading Thursday.
Net sales for the quarter were $7.8 million. Loose Moissanite gemstone sales totaled $4 million, down from $4.1 million during the same period a year ago. Finished jewelry sales were up 57 percent to $3.8 million.
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Charles & Colvard's operating expenses rose 15 percent, or $600,000, to $4.6 million. The increase was mainly due to $700,000 in bad debt expenses that was primarily associated with one customer.
In a statement, CEO Randy McCullough said the company has been bolstering its sales staff in recent months to drive sales.
“Our new sales hires hit the ground running in April and May, and we believe their efforts will begin to make an impact on our sales,” he said. “Our new marketing initiatives have been well-received, and we are also making inroads into expanding our domestic customer base, particularly with U.S. sales increasing 35 percent and accounting for 93 percent of our business this quarter.”
Charles & Colvard’s stock has lost 77 percent of its value since September, falling from a 52-week high of $8.07 to $1.85 Thursday afternoon.