Charles & Colvard reports fourth-quarter and year-end results

Staff -- JCK Online, 3/1/2002 1:46:00 PM

Charles & Colvard, Ltd., Morrisville, N.C., the sole source of moissanite-a created jewel available for use in fine jewelry-reported fourth quarter sales of approximately $4 million on shipments of approximately 23,200 carats. The net income for the quarter was approximately $457,000 or 3 cents per share. In the fourth quarter of 2000, the company reported sales of approximately $3.3 million on shipments of approximately 18,600 carats. The net loss was approximately $2.7 million or 37 cents per share.

Carat shipments during the fourth quarter of 2001 were 24% above shipments during the same period of 2000. North American carat shipments were up 61% for the quarter, primarily due to distribution expansion into a number of new outlets, offset by a 55% decrease in international carat sales. The average selling price for the fourth quarter was 4% below the third quarter and 3% below the fourth quarter of 2000, attributable to a change in product mix.

Sales for the year ended December 31, 2001, were approximately $11.5 million on shipments of 62,900 carats. For the year, the net income was approximately $1.2 million or 10 cents per share. For 2000, sales were approximately $12.8 million on shipments of 68,800 carats and the net loss was $7.1 million or 99 cents per share.

"We are pleased with sustained profitability for four consecutive quarters, with the last three having positive cash flow from operations," Bob Thomas, president and chief executive officer of Charles & Colvard, said in a statement. "The company's fourth quarter carat sales represent the highest quarterly shipment in company history. Our 61% increase in North American sales is remarkable when compared to the sales levels seen within the jewelry industry during the fourth quarter."

Charles & Colvard, based in the Research Triangle Park area of North Carolina, became a public company in 1997.