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Charles & Colvard declares Q2 2006 financial results

24 Jul '06
3 min read

Charles & Colvard Ltd, the sole source of moissanite, a created jewel available for use in fine jewelry, reported second quarter 2006 operating results.

For the three months ended June 30, 2006, the Company reported net sales of $8.5 million compared to $9.3 million in the second quarter of 2005. This year-over-year decrease was primarily the result of a difficult anniversary with the year-ago quarter, in which a large order was shipped to K&G Creations for the completion of the initial rollout of moissanite jewelry at Finlay jewelry counters.

Gross profit margins increased to 75.0 percent in the second quarter of 2006 from 65.3 percent in the comparable quarter of 2005 primarily as a result of improved production costs.

Net income for the second quarter 2006 increased 48 percent to $1.1 million, or $0.06 per diluted share, compared to net income of $740 thousand, or $0.04 per diluted share, in the comparable period of 2005.

Charles & Colvard's domestic sales in the second quarter decreased 15 percent to $7.2 million, attributable to decreased sales to K&G Creations as noted above. International sales for the second quarter increased 59 percent to $1.3 million, with strong results from all key geographic regions.

Total shipments of 51,100 carats for the current period were 5 percent less than the 53,900 carats shipped in the same period of 2005. Total shipments of carats in the U.S. decreased 12 percent while international shipments of carats increased 64 percent.

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