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Sarine Technologies' Revenue +17%, Profit +85%
Nov 10, 2014 8:53 AM
By Ronen Shnidman
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RAPAPORT... Sarine Technologies, the diamond manufacturing equipment maker, reported that group revenue grew 17 percent year on year to $20.3 million in the third quarter that ended on September 30. Sales of all products experienced growth, but gains were driven by increased revenue generated from the Galaxy line of automated rough diamond inclusion mapping systems. Group profit jumped 85 percent to $5.7 million during the quarter, due in a large part to a sizable tax charge in the same quarter in 2013.
The company stated that nearly 185 Galaxy systems have been installed worldwide as of September 30. The larger base of installed machines has helped generate growth in recurring revenue for Sarine that is derived from the Galaxy’s pay-per-use fees. Recurring revenue comprised of 35 percent of the total revenue for the period.
Revenue from India, Sarine’s largest market, grew 25 percent to $16.4 million during the quarter. In the company’s “other” category, which consists primarily of Asian countries outside of India and Israel, revenue declined 15 percent to $1.3 million. Meanwhile, Sarine’s revenue from the Israeli market grew 30 percent to nearly $1.2 million during the quarter.
Sarine’s management concluded that stability across the global economy and the rupee to dollar exchange rate was expected to continue in the near-term. However, the company said that deliveries of new Galaxy systems were weaker than expected in the quarter due to credit issues with diamond manufacturers that were suffering from tight liquidity. It added that tight liquidity among diamantaires might continue to affect company sales through early 2015.
Looking ahead, the company was seeking to emphasize improved throughput and automation in the research and development of Galaxy products to lower the cost of machine use and ownership for clients. The company also said that its Advisor software -- for inclusion mapping and planning -- was in beta testing and an improved version of the software package is expected to launch in early 2015.
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Tags:
Galaxy, inclusion, Liquidity, mapping, Ronen Shnidman, Sarine Technologies
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