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RAPAPORT... Lazare Kaplan International predicted that its revenue will reflect a 30 percent year-on-year drop to $13.5 million for its first fiscal quarter that ended on August 31. The anticipated decrease in sales was attributed to a decrease in sales of commercial (non-branded) polished diamonds, according to the firm's notification of late filing with the Securities & Exchange Commission (SEC).
The company only provided ''a reasonable estimate'' of its expected net sales due to ongoing litigation and material uncertainties, which it reported have prevented Lazare Kaplan from filing quarterly and fiscal year financial reports since May 2009.
Rough diamond prices charged by producers have generally been rising ahead of polished diamond prices, placing significant pressure on diamond manufacturers, Lazare Kaplan stated. The continued existence of its litigation with Antwerp Diamond Bank N.V. and KBC Bank N.V. and the inability of the company to resolve its material uncertainties in a timely manner, has adversely impacted the company's ability to transact business in the ordinary course to the same extent and in the same manner as it did previously.
On October 15, the board of directors exercised its right to repurchase 625,000 shares of common stock from Leon Tempelsman, the company's vice chairman of the board and president, pursuant to a share repurchase option from September 6. Shares were purchased at a price of $1.40 each for a total consideration of $875,000. The shares were originally purchased by Tempelsman on July 18.
The company intends to hold the purchased shares in its treasury. Additionally, at this time, the company does not intend to purchase any additional shares of its outstanding common stock under any stock purchase plans or programs or otherwise, but reserves the right to do so at any time and from time to time.
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