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RAPAPORT... Sarin Technologies Ltd. reported that revenue fell 26 percent year on year to $11.7 million and profit plunged 42 percent to $2.5 million for the third quarter that ended on September 30. The declines reflected significant weakening in manufacturing activity and capital investment in India, in particular, during the third quarter, Sarin observed. Given a stronger first half, however, Sarin stated that revenue rose 13 percent year on year to $49.6 million for the first nine months and profit improved 35 percent to $16.9 million. Specifically during the third quarter, Sarin delivered five GalaxyTM family systems, increasing the installed base of Galaxy systems to just under 90. Recurring Galaxy-related revenue improved nearly 30 percent year on year, according to Sarin. “The third-quarter 2012 results vindicate our strategy of focusing on recurring revenue models, rather than one-off capital equipment sales, as the quarter evidenced how this strategy has helped us to somewhat mitigate the volatility associated with the sale of capital equipment,” said Uzi Levami, Sarin's chief executive. Sarin observed ongoing economic challenges in Europe but some signs of improvement in the U.S. and for emerging markets such as China. Following the recent downward adjustment in rough diamond prices and wholesalers' and traders' renewed purchase of polished diamonds ahead of the Diwali and Christmas seasons, diamond manufacturing activity in India started to rebound, providing some relief to the liquidity issues, according to Sarin. The company is currently working on an enhanced Galaxy system with microscopic quality to aid planners achieve flawless polished results by eradicating even very small inclusions. This system is expected to be available in Sarin’s service centers late in the first half of 2013. In addition to the Galaxy family of products, the group is commercializing the Sarin-Light (a light-performance product) and the Sarin-Loupe to service polished diamonds and expand recurrent revenues, as well as carrying out its final refinements to the Sarin-Loupe before the commercial launch of this service in 2013.
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