Charles & Colvard Reports Profitable Quarters


July 24, 2001

Charles & Colvard Reports Profitable Quarters

Charles & Colvard, the sole producer of created moissanite, announced it achieved two profitable quarters in the first half of 2001. For the second quarter ended June 30, the company reported a net income of $359,000 on sales of $2.5 million, which is an increase in income but a decrease in sales from the same quarter a year ago. In the same quarter a year ago, the company reported a net loss of $1.3 million on sales of $3.6 million.

During the second quarter of 2001, North American sales were $2 million and international sales were $510,000. Operating income for the second quarter was $261,000. Sales for the six months ended June 30 reached $5.4 million, and net income for the period was $606,000.

"Charles & Colvard has maintained the profitability reached in the first quarter of 2001," says President and CEO Bob Thomas. "We are working to sustain profitability, while we continue to expand distribution and increase product awareness." Carat shipments in the second quarter were down 35% from a year earlier. Gross margin for the quarter was 56%.

- by Julia M. Duncan