Charles & Colvard Lowers 2007 Forecast

Charles & Colvard, Ltd., the sole source of moissanite used in fine jewelry, has lowered its 2007 revenue forecast and hired a consulting firm to assess the Morrisville, N.C.-based company’s business model and provide recommendations for improved sales performance.
The company, based on sales information as of Jan. 11, has adjusted its fiscal 2007 revenue forecast (ended Dec. 31) to a range of $27 million to $28.4 million—down from its previous revenue guidance of $30 million to $33 million. The company did not say when it will release its fourth quarter and year-end report.
Charles & Colvard has engaged Kanter International, a Philadelphia-based business and brand building consulting firm. The business model review will include evaluating the supply chain, sales distribution channels, and marketing program. In addition, Kanter will identify internal and external resources, both human capital and financial support, required to implement any changes to the company’s business model.
“While we have achieved increased consumer awareness over the last year and consistently maintained a healthy gross margin rate of between 70-75 percent, we have not achieved the level of revenue growth we anticipated,” said Bob Thomas, Charles & Colvard chairman and chief executive officer.