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RAPAPORT... DGSE Companies Inc. reported that revenue fell 10 percent year on year to $17 million in the third quarter that ended on September 30. The company observed strong growth for jewelry, watch and diamond sales, which partially offset continued decreases in both bullion and scrap metal sales, a result of lower gold prices. Gross profit as a percent of sales rose to 18.4 percent compared with 17.4 percent one year earlier. Net income was $179,587 compared with a loss of $1.4 million.
"Successfully growing our jewelry business and closely managing our expenses has allowed us to show a small profit this quarter, despite revenue being down by 10 percent," said Dusty Clem, the CEO of DGSE. "DGSE continues to see the benefits of expanding our focus on high-margin jewelry, diamond and watch sales, which has enabled us to partially offset the continued, industry-wide slowdown in the bullion and scrap businesses. While we are gratified to show a return to positive earnings for the first time in several quarters, we are certainly not satisfied with essentially break-even results in our continuing operations." Income from discontinued operations for the quarter was $167,000, related to the Southern Bullion locations closed in February and April of 2014, compared with a net loss of $569,000 for these locations in the same quarter of 2013.
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