RAPAPORT... Charles & Colvard more than doubled revenue during the fourth-quarter to $7.2 million, and the company's net income rose to $1.8 million from $410,232 one year ago. Sales of moissanite and jewelry for the company's fiscal-year, which closed December 31, 2011, rose 26 percent year on year to $16 million and profit was flat at $1.6 million.
Loose moissanite gemstone sales increased 19 percent year on year to approximately $12.1 million for the company's fiscal year. Finished jewelry sales increased 57 percent to approximately $4 million. Charles & Colvard held no long term debt.
''The turnaround story continues at Charles & Colvard, and we’re thrilled with our outstanding results in the fourth quarter,'' said Randy N. McCullough, the chief executive of Charles & Colvard. ''Revenues benefited from our investments in new sales and marketing initiatives throughout our distribution channels. Our television shopping network customers’ sales were strong as a result of our two largest networks significantly increasing the number of moissanite shows during the fourth quarter due to the continued success they have been experiencing, and we expect this trend to continue.
''Our sales team has also made inroads into several international markets, including China and Kazakhstan, that represent new opportunities for moissanite jewelry and have the potential to continue providing incremental revenue for our company,'' McCullough concluded.
Timothy L. Krist, the chief financial officer of Charles & Colvard, added, ''We are very pleased to have generated over $1.6 million in positive cash flow from operations during the fourth quarter, which was accomplished even with investments in our home party and other future revenue-generating initiatives. It speaks to the commitment this management team made back in 2009 to get our company cash flow positive and work diligently to keep it there. Additionally, we continue to remain well-positioned financially to organically grow our business with over $10 million in available cash and investments and a long-term debt-free balance sheet.''