Charles & Colvard reach $11 million in quarterly sales

Charles & Colvard, Ltd, the sole source of moissanite, reported third quarter sales of $11.3 million resulting in operating income of $3.1 million and net income of $2.2 million. This represents a 118% increase over last year’s third quarter sales of $5.2 million, a 372% increase versus last year’s third quarter operating income of $659,000, and a 639% increase versus last year’s net income of $303,000, the Morrisville, N.C.-based company said.

“Our company’s third quarter sales represent the highest quarterly revenue in our history,” said Bob Thomas, Charles & Colvard president and CEO.

Sales for the nine months ended Sept. 30, aggregated $31.9 million on shipments of 186,000 cts. Net income for the first nine months of 2005 was $5 million. Year-to-date sales are 110% ahead of first nine month 2004 sales of $15.2 million on shipments of 86,000 cts. Nine months 2005 net income was 335% above 2004 net income of $1.1 million.

Domestic sales, which represent 93% of total sales, were up 132% for the quarter (137% in cts.), primarily attributable to the sales resulting from the JCPenney distribution which initially occurred in the fourth quarter of 2004 and the rollout to jewelry departments leased to Finlay Enterprises that began in the first quarter of this year, the company said. International sales for the third quarter increased 24% (27% in cts.) primarily due to increased sales to Thailand, Italy, Canada, and Taiwan offset by lower sales to Singapore and Australia. Total shipments of 67,000 cts. for the current period were 123% above the 30,000 cts. in the same period of 2004.