Charles & Colvard Ltd, the global source of moissanite, a created jewel available for use in fine jewelry, reported first quarter 2008 operating results.
First Quarter Ended March 31, 2008 Results:
• Net sales decreased 41% to $3.4 million as compared to $5.8 million in the first quarter of 2007.
• Operating loss was $1.1 million compared to operating income of $587,000 for the same period in 2007.
• Net loss was $698,000, or $0.04 per diluted share, compared to net income of $339,000, or $0.02 per diluted share, in the comparable period of 2007.
Bob Thomas, Chairman and Chief Executive Officer commented, “While we were disappointed with our first quarter financial results as sales trends at retail continue to be soft, we remain intently focused on addressing short-term challenges our company is facing.
We are pleased to announce that Kanter International, a brand consulting firm we engaged to conduct a review of our Company, has completed its assessment of our business model and provided recommendations. We are in the process of evaluating the recommendations which focus on organizational structure, brand building and sales growth strategies as well as expense controls and inventory management.
As part of our cost cutting initiatives in April we reduced our U.S. workforce by 18% which we expect to result in annual savings in excess of $500,000. The next steps will address more encompassing issues and will be brought forth after our new board of directors is elected at our annual shareholders meeting on May 27, 2008.”
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