Market Challenges Lead to Sarine Profit Drop

RAPAPORT… Profit at Sarine Technologies plunged in the fourth
quarter, as sentiment in the diamond industry softened amid weaker consumer spending.

The diamond technology company reported net profit fell 85% year on year to $93,000 for the three
months that ended December 31. Uncertainties in China and tighter bank credit
to India’s manufacturing sector resulted in lower capital-equipment sales and
reduced recurring revenues, Sarine explained on Sunday. Increased income tax expenses on the
write-down of certain deferred tax assets also affected its bottom line.

Revenue for the
period declined 6% to $12.2 million. Sales in India, Sarine’s biggest market, fell 20% to $5.9
million for the October-to-December period. North American sales jumped 10% to
$222,000, while in Israel, revenue slumped 33% to $786,000.

Revenue for the full year
slipped 0.2% to $58.5 million, while profit increased 32% to $7.6 million.

Sarine believes “adverse sentiments are likely to persist”
in 2019, primarily due to credit tightening by Indian banks.

Image: Sarine Technologies headquarters in Hod HaSharon, Israel. (Sarine Technologies)