Cubic zirconia covered with a film of moissanite has been discovered in India, and it’s possible detectors would flag it as pure moissanite, Charles & Colvard CEO Randy McCullough said on a conference call, following release of the moissanite manufacturer’s financial results.
McCullough tells JCK that a distributor discovered several pieces of moissanite-covered cubic zirconia on the market in India. McCullough believes the items would test positive for moissanite, which generally retails above cubic zirconia. None has been found in the United States.
“It’s not a widespread thing to my knowledge,” he says. “But it all goes back to, if it sounds too good to be true, it probably is. Be careful if someone is trying to sell you something that is 30, 40 percent under market.”
He says the company has seen a lot of generic moissanite in India and China, since the company doesn’t have a patent there.
The company also announced mixed financial results for the second quarter of 2014 (ended June 30).
Sales rose 20 percent to $7.8 million, with U.S. sales increasing 35 percent, to $7.3 million. International sales fell 50 percent, to $600,000.
The company posted a $6.2 million net loss for the quarter, compared to a $500,000 gain the prior year. The net loss for the quarter was fueled by an income tax expense of $4.2 million.
It also secured a new three-year, $10 million asset-backed credit facility from Wells Fargo Bank.