Charles & Colvard Q3 Net Sales Slide 46% to $6.6 Million

Moissanite manufacturer Charles & Colvard Ltd reported a year-over-year net sales decrease of 46 percent, from $12.1 million in the third quarter of 2006 to $6.6 million in 2007. Gross profit was $4.9 million for the quarter ended September 30, a 42 percent decrease from the $8.3 million in 2006.

Operating income for the quarter decreased 84 percent from $3.5 million to $560,000, while net income fell from $2.2 million to $246,000.

According to Chairman and CEO Bob Thomas, the factors that affected the company in the first half of the year continued to harm it in third quarter.

“Moissanite customer orders continue to be slow due primarily to ongoing higher-than-average inventory levels among our direct manufacturing customers and at the retail level,” said Thomas.

Thomas also explained that their domestic jewelry manufacturing clients are facing economic challenges in the form of increased foreign competition and consolidation within the domestic industry.

In related news, Charles & Colvard was ranked number 39 on the Fortune Small Business list of America’s 100 fastest-growing companies in 2006, a jump from the previous year’s rating of 54.