News Flash

Charles & Colvard's domestic sales slip in Q1

30 Apr '08

3 min read

Mr. Thomas continued, “The Board of Directors will undergo significant changes as outlined in our Proxy statement. Three directors will not stand for re-election to the Board, primarily due to the time commitment we envision as we deal with the issues and opportunities facing the Company. We made a determined effort to recruit the talent and expertise required to guide our Company in this challenging time.”

First Quarter Details:
Revenue in the first quarter 2008 was down 41% to $3.4 million as compared to $5.8 million in the prior year first quarter. The sales decline was mainly attributable to actions by retailers to effectively reduce inventory on-hand, partially due to the challenging macro environment.

Another factor that negatively impacted revenue during the first quarter was the time and effort necessary for several retailers to transition to new moissanite jewelry suppliers to replace the jewelry previously sourced thru K&G Creations.

That process is being concluded in the second quarter and we expect to see the revenue contributions from those retailers return to a more normal pattern in the second half of the year.

Charles & Colvard's domestic sales in the first quarter decreased 47% to $2.4 million compared to the first quarter of 2007. International sales for the first quarter decreased 20% to $961,000, primarily due to decreased sales to the United Kingdom, Thailand and Canada, partially offset by higher sales toHong Kong.

Total shipments of 18,400 carats for the current period were 48% less than the 35,300 carats shipped in the same period of 2007. Shipments of carats in the U.S. decreased 53% while international shipments of carats decreased 28%.

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Charles & Colvard Ltd

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