LJ International posts significant increase in revenue, income

15 May '06

3 min read

LJ International Inc, one of the fastest-growing jewelry companies in the world, has reported record financial results for its first quarter ended March 31st 2006.

Revenue for the quarter totaled $24.16 million, up 39 percent from $17.44 million in the first quarter of 2005. First quarter 2006 revenue also once again exceeded the company's prior guidance, which had projected sales ranging from $21 million to $22 million.

The company achieved net income of $322,000, or $0.02 per fully diluted share for the first quarter of 2006, an increase of 29 percent from $249,000, or $0.02 per fully diluted share, in the first quarter of 2005.

The company noted that, excluding ENZO's start-up expenses of $550,000 this quarter, it would have reported net income of $872,000, or $0.05 per fully diluted share, representing 150 percent growth, as compared with the reported EPS of $0.02 for the whole group.

Yu Chuan Yih, LJI's Chairman and CEO, said, "The first quarter of 2006 was notable as it represented the first significant test of our China retailing operation, ENZO, during the Chinese New Year celebration, which extended this year from the end of January to mid-February. Our ENZO results for this period confirmed our view that we have connected well with Chinese consumers, in terms of product lines, price points and strategic locations."

Yih added, "We are also pleased to see LJI jewelry is continuing to meet robust demand from many of our longstanding retail partners in North America, Europe, Australia and other global markets. Based on ENZO's performance in the first quarter, consistent growth from our core wholesale business and the increasing global demand for Chinese manufacturers, we believe we will likely achieve another record year in 2006.”

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