Business

May 2, 2014

Charles & Colvard reports disappointing first-quarter earnings

Moissanite gemstone maker Charles & Colvard reported a net loss in the first quarter as revenue declined 7 percent.

Moissanite gemstone maker Charles & Colvard reported a net loss in the first quarter as revenue declined 7 percent.

Morrisville-based Charles & Colvard reported Wednesday a net loss for the quarter of 1.1 million, or 5 cents per share, compared with net income of $300,000 million, or 2 cents per share during the first quarter of 2013.

Sales totaled $6.1 million. While U.S. sales were up 12 percent, international sales fell to $400,000, compared to $1.4 million in the first quarter of 2013.

In a statement, CEO Randy McCullough said the company has made a number of new sales and marketing hires designed too drive new sales.

“We do not believe the financial results for this quarter represent our long term growth opportunity,” he said.

Loose Moissanite gemstone sales were down 15 percent in the quarter to $3.7 million, while finished jewelry sales were up 11 percent to $2.4 million.

One bright spot was the company’s direct-to-consumer business which increased 89 percent to $900,000.

Charles & Colvard shares are down 60 percent this year. After reaching a high of $8.22 in September, the stock was trading at $2 Friday afternoon.

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