Charles & Colvard Returns to ProfitabilityApril 29, 10
Charles & Colvard, the manufacturer of moissanite jewels, posted first quarter net sales of $2.85 million, an increase of 15 percent compared to the first quarter of 2009, and a profit of $298,000, compared to a loss posted last year.
The company said that sales continued to improve primarily due to management's efforts of “revitalizing” existing customer relationships and the addition of several new customers.
Contributing to net income was a reduction of $1.04 million in costs and expenses.
Further, the gem and jewelry maker had $2.79 million in cash and $5.05 million in liquid long-term investments at the end of the quarter, and it generated approximately $489,000 of cash from operations during the quarter. Net income of $298,000, a net decrease in inventory of $639,000 and an increase in accrued cooperative advertising of $138,000 were the primary drivers for positive cash flow in the quarter, which more than offset an increase in trade accounts receivable of $595,000.
“Not only did our sales improve over fourth quarter 2009, but we also achieved a 15 percent increase over the first quarter of 2009 and reported our first profitable quarter since third quarter 2007,” said CEO Randy N. McCullough.