Sarine Sales Rise 45%, Profits Up 126% in Q2 2016

Aug 09, 2016

Sarine Technologies Ltd released its financial results for the quarter ended June 30, 2016 (Q2) announcing a 45% increase in revenue and a 126% jumpin net profit as compared to the same period the previous year. The Company said in a statement that it was a beneficiary of the continued recovery in the diamond industry and the increased sales of its GalaxyTM family systems during this period was a result of the return of midstream profitability.

The improvement was underpinned by higher sales of diamond manufacturing equipment and growing recurring revenue generated by the GalaxyTM family inclusion mapping systems, QuazerTM laser cutting and shaping services and annual maintenance contracts.

For the three months ended on June 30, Sarine reported an increase in revenue to US$20.9 million in Q2 2016. Profits from operations doubled to US$ 6.7 million during the same period and net profits jumped 126% to US$ 6.0 million, the statement said.

For its half-year 2016 performance, the Group recorded 37% and 154% increase in revenues and net profits to US$36.4 million and US$9.0 million, respectively.

The performance was driven by a record 20 deliveries of GalaxyTM family systems during the quarter, taking the total installed base to 253 by the end of the period. Its recurrent income contributed about 40% of H1 2016 revenues.

“Though we expect slightly fewer deliveries in the second half of 2016, primarily due to the Indian Diwali holiday in Q4 2016, we are confident that 2016 will be a record year for GalaxyTM family system deliveries, expanding substantially upon the typical 40+ deliveries realised in the previous years,” commented Uzi Levami, CEO of Sarine.

The Company also said that sales programmes utilising the Sarine ProfileTM are creating buzz as more leading retailers in the US and the Asia Pacific (APAC) region adopt ths system to enhance the buying experience of customers for polished diamonds. Some of the early adopters include CIMA from Japan, Shining House, Kela and Hope from China, Soo Kee from Singapore and GN from North America.

The Company said it had cash and cash equivalents totaling US$ 37.4 million as of June 30 and no debt.

The Board declared an interim dividend of US cents 2.0 per share for H1 2016, an increase of 33% over H1 2015

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