LJ International ups guidance for Q2, expects 37% rise in sales

12 Jul '06

3 min read

LJ International Inc, one of the fastest-growing jewelry companies in the world, today raised its previously announced guidance for the second quarter ended June 30, 2006. It now forecasts revenues for the quarter of approx. $26 million, with net income of approx. $620,000, or $0.04 per diluted share, for its second quarter.

The projected revenues for the second quarter of 2006 would represent a 37 percent increase over the $19.1 million reported in the second quarter of 2005. The expected net income would be up 105 percent from $303,000 in the second quarter of 2005. Earnings per fully diluted share, forecast at $0.04 for the second quarter of 2006, would double both the $0.02 reported in the year-earlier quarter as well as current expectations for the second quarter of 2006.

In addition to raising its second-quarter forecast, LJI indicated that it will likely also increase both revenues and earnings for all of fiscal 2006 as soon as additional data begins to emerge from its ENZO Division.

LJI Chairman and CEO Yu Chuan Yih said, "As I indicated in detail in a recent letter to our shareholders, we are well on-track to once again exceed both our revenue and earnings targets for not only the current fiscal year both for the foreseeable future as well."

"Our increased second quarter guidance as well as our soon-to-be announced full-year 2006 projections, for instance, places us much closer to our 2008 revenue target range of $155 million to $165 million. And with ENZO expected to come close to profitability by the end of 2007 -- 13 of the 30 stores are now operating in the black -- LJI's overall EPS growth should resume a sharper upward curve beginning this year. In short, the Company's near-term performance suggests that the earlier announced three-year targets are quite achievable, even conservative," he concluded.

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