by Aspellian » Thu Oct 14, 2010 1:45 pm
Now at 53 cents, a drop of 14% today.
Chinaman, what's your view? a chance to pick up Sarin?
Q3 2010 Update
Kfar Saba, Israel, 13th October 2010 – Singapore Exchange Mainboard-listed Sarin Technologies Ltd (“Sarinâ€) (U77:SI), a worldwide leader in the development, manufacturing and sale of precision technology products for the planning, processing, evaluation and measurement of diamonds and gems, would like to provide an update on its third quarter financial results.
Further to our quarterly results announcement for Q2 2010, released to the Singapore Exchange on 10 August 2010, wherein we noted that the record results of the Group during the first six months of 2010 may not repeat themselves in the second half of the year, we would like to inform the public that, indeed, our revenues and net profit for Q3 2010 were significantly less than in each of the two preceding quarters of this year.
The decrease in revenues was due to a number of factors reported upon in our aforementioned quarterly announcement of 10 August 1010, including:
ï‚· record capital expenditures on the part of our customers in the first half of the year;
ï‚· various market uncertainties in Q3 2010 relating to global economic conditions;
ï‚· the increased cost of rough diamonds which were not matched by a similar increase in prices of polished diamonds; and
ï‚· issues pertaining to the quantity and quality of Zimbabwean rough diamonds released into the market which caused uncertainty in the diamond trade consequently delaying capital expenditures.
Some of the uncertainties have been partially alleviated, and the recent trade shows have been overall positive, so that customer capital expenditures can be expected to rebound somewhat, notwithstanding the Diwali holiday in India in Q4.
We continue to focus on the growth of our service-based business models in our revenue mix, in order to mitigate such quarterly variances in the future, and remain confident this goal will be attained in the medium term. To this end, we are no longer selling the Galaxy systems on a one-off basis, without the follow-on per-use service fees.
Although this has negatively impacted our recent quarterly sales and profit figures, it will significantly contribute in the medium- and long-term to a more consistent recurring revenue stream. Indeed, our recurrent service-based revenue from deployed Galaxy systems continues to grow on a sequential quarterly basis.
Sarin will be announcing its quarterly financial results for the three and nine months ended September 30, 2010 during the second week of November 2010.
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