Branded jewelry marketer LJI Q2 revenues up 17%

12 Aug '05

4 min read

Jewelry marketer LJ International Inc (LJI) reported record financial and operational results for the second quarter and six-month period ending June 30, 2005. Highlights of the report include:

- Company exceeds second quarter revenue guidance by $1 million to a record $19 million.
- Year-over-year revenue gains are 17 percent for the second quarter and 19 percent for the first half to a record $36.5 million.
- Net income, before ENZO start-up expenses, increases 27 percent for the second quarter, 38 percent for the first half. Including expenses, Company achieves net income of $303,000, or $0.02 per fully dilute share, in-line with guidance.
- Company projects higher revenues and earnings in the third quarter
- $23 - $24 million in revenue, EPS of $0.09 - $0.10 per fully diluted share

Company expects continued third-quarter growth and expansion into China continues.

LJI's revenues in the second quarter, ending June 30, 2005, totaled a record $19.07 million, up over 17 percent from $16.26 million in the second quarter of 2004. This represented more than $1 million above the earlier forecast range of $17.5 million to $18 million. The Company attributed the rise to higher-than-expected demand from existing customers.

Net Income Up Sharply Before Retail Rollout Expenses
Net income in the second quarter of 2005, excluding expected start-up expenses of approximately $300,000 for the ENZO Division, was $603,000, or $0.04 per fully diluted share. This represented an increase of 27 percent from net income of $474,000, or $0.04 per fully diluted share, from the second quarter of 2004, which did not include any ENZO-related expenses. The second quarter 2005 EPS was negatively impacted as a result of the issuance of additional shares from a private placement.

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