Moissanite gemstone maker Charles & Colvard’s stock dropped 17 percent Thursday after the Morrisville company reported its second consecutive quarterly loss.
The company reported a loss of $1.2 million, or 6 cents per share, in the third quarter, compared to net income of $124,000, or 1 cent per share during the third quarter of 2012.
Net sales increased 35 percent in the quarter to $6.9 million. Loose moissanite gemstone sales were up 28 percent in the quarter to $4.8 million while finished jewelry sales were up 56 percent to $2 million.
But Charles & Colvard's operating expenses rose 45 percent, or $1.3 million, to $4.2 million. The company attributed the increase to added personnel and an uptick in sales and branding efforts, including promoting the company’s direct-to-consumer business and raising awareness about moissanite in China.
“We continue to focus on our core business of manufacturing and distributing loose moissanite gemstones and finished jewelry through wholesale channels, and believe there is long-term opportunity for us to grow this business and increase moissanite as a percentage of the worldwide jewelry market,” CEO Randy McCullough said in a statement.
Charles & Colvard's shares closed Thursday at $5.31, down $1.10. The stock is up 35 percent this year.