Jeweller Charles & Colvard gives a planned performance
20 Jul '05
5 min read
Operating expenses were up 106% for the quarter when compared to last year's amounts. Marketing and Sales expense was up $2,063,000 primarily due to a $676,000 increase in co-op advertising expense, $567,000 of increased stock option compensation expense on options issued to consultants, $311,000 of increased print advertising and $193,000 as a result of a new advertising photo session.
General and administrative expenses increased $330,000 primarily due to a $175,000 increase in compensation expense. As a percentage of sales, operating expenses for the quarter were 52%, a decrease of 2 percentage points when compared to the same quarter last year.
Mr. Thomas stated, "Their $2.6 million increased investment in marketing and sales expense in the first half of the year has been substantial. Their priority has remained unchanged, that is, to drive future top line growth while remaining profitable, and their advertising and promotional activities will continue to be executed in that effort."
Cash increased from $13.5 million at March 31, 2005 to $18.8 million at June 30, 2005. This $5.3 million increase was primarily due to the $1.2 million of operating income that was generated during the quarter, a $1.7 million decrease in Accounts Receivable and a $1.9 million increase in Current Liabilities.
North Carolina based Charles & Colvard Ltd is the sole source of moissanite, a created jewel used in fine jewelry.
Moissanite also known by its chemical name, silicon carbide (SiC), is a rare, naturally occurring mineral found primarily in meteorites. As the sole manufacturer of scientifically made moissanite jewels, the Company is promoting a brand image that positions moissanite as a unique jewel based on its fire, brilliance, luster, durability and rarity.
marketing@alchempro.com
