Sarine Technologies Ltd announced its financial results for the first quarter ended 31 March 2016. It noted a rise in Group revenues by 27 percent (on y-o-y basis) to US$ 15.5 million, while as compared to Q4 2015, the said revenues were up 25 percent in Q1’16. Net profit increased by a whooping 240 percent to US$3.0 million.

The company noted a favourable environment in the diamond industry building up as midstream diamond industry continues to recover. The initial recovery in the diamond industry in late 2015, business sentiments continued to improve as recovery gained momentum in Q1 2016 with increasing polished diamond prices, lower rough diamond prices, overall positive diamond jewellery demand from consumers, replenishment of polished diamond inventories and easing of midstream liquidity problems. The return of profitability for diamond manufacturers drove higher manufacturing activities and renewed investments in capital equipment.

Sarine delivered 18 GalaxyTM family systems in the quarter, bringing the total installed base of GalaxyTM family systems to 233 as of 31 March 2016. Recurring income generated by the growing installed base accounted for over 40% of Q1 2016 revenue. With total operating costs being well controlled, profit from operations rose high, to US$ 3.7 million in Q1 2016, up 357 percent compared to the previous corresponding period in 2015. After accounting for income tax expenses, the Group reported net profit of US$ 3.0 million in Q1 2016. This was higher than US$ 0.9 million and US$ 1.5 million recorded in Q1 2015 and Q4 2015, respectively.

“Our extensive GalaxyTM suite of inclusion mapping solutions is now capable of processing stones from 20 points rough up to 200 carats, addressing a market segment from which 65 million polished stones are derived annually,” commented Mr. Uzi Levami, CEO of the Group. “We expect the current trend favouring smaller stones to drive the sales of SolarisTM and MeteorTM systems. We also see continued strong customer demand for our high resolution inclusion mapping system, the GalaxyTM Ultra,” Mr. Levami added.

The Group is on track with a rollout of its machines in targeted key markets, namely the US and the Asia Pacific (APAC) region. Following the response by retailers in APAC exceeding the Group’s expectation, Sarine looks to capitalise on it by expanding its marketing teams in the newly established Hong Kong regional sales headquarters as well as in the US in FY2016. The company will also lay focus on growth in Jaipur, India and Ramat Gan.