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.
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“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.