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Water Leak Dampens Scio Diamond’s 3Q Revenue

Feb 23, 2016 10:14 AM   By Rapaport News
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RAPAPORT... Scio Diamond Technology Corp., a lab-grown diamond producer, said sales growth in the third fiscal quarter fell below its expectations as a water leak led to a temporary shutdown of its production base.

Revenue in the three months that ended December 31 still jumped 15 percent to $125,677 from a year ago, according to a Scio statement February 12. Net loss for the quarter was cut 4.3 percent to $1.3 million.

“October and November production and sales of white gemstone material were good and we anticipated even stronger growth in December,” said Gerald McGuire, Scio Diamond’s president and chief executive officer. “But our business and factory were interrupted with a shutdown mid-December which impacted the quarter overall.”

The leak on December 12 resulted in damage to the company’s diamond growers. The factory was operating again within “a number of days” and is currently working at more than 80 percent capacity, the statement said. Full operations are not expected to resume until the end of February because of the lead time on ordering certain new parts.

The shutdown had a “significant negative impact” on December and January revenue and “delays the company’s attainment of its near-term business objectives.”

Scio Diamond, based in South Carolina, uses patent-protected chemical vapor deposition (CVD) to produce its stones. The company started offering fancy color pink and colorless gems to the market last summer, it said.
Tags: lab-grown diamonds, Rapaport News, Scio Diamond Technology Corp., Synthetics, synthetics producers
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