A water leak hurt sales
In the third quarter of fiscal 2016, Scio Diamond saw its revenue from its lab-grown products increase and its losses narrow.
Revenue grew 15 percent to $125,677 for the Greenville, S.C.–based company’s third quarter of fiscal 2016 (ended Dec. 31). The quarter showed a net loss in of $1.26 million, an improvement from the prior year’s $1.3 million.
“We are pleased to report revenue growth, albeit below expectations,” said Gerald McGuire, president and CEO, in a statement. “October and November production and sales of white gemstone material were good, and we anticipated even stronger growth in December.”
However, December sales were hampered by a water leak, which damaged its diamond-growing machines and interrupted production. The factory restarted operations days later, and is now operating at 80 percent of capacity. The company is currently working with its insurance carrier to cover the cost of the interruption.
Scio began delivering fancy color pink and colorless gems to the market during the summer, it said.