Polished Stocks Too Heavy for Sarine

RAPAPORT… Sarine Technologies’ sales slid in the third quarter as a
buildup of polished inventories resulted in manufacturers investing less in their operations.  


Revenue fell 35% to $11.3 million in the three months ending
September 30, reported the Israel-based company, which provides equipment for diamond manufacturing. The company
slipped to a $530,000 loss, versus a profit of $4 million a year ago.


Stockpiles in the manufacturing sector, which were already
high in June, accumulated further in the third quarter, prompting companies to
reduce their production plans and expenditure, Sarine explained. In addition,
infringement of Sarine’s intellectual-property rights and uncertainties due to
related litigation also damaged sales, the company added.


“Barring any unforeseen negative developments, we expect the
polished inventory levels to be reduced by wholesale buying commencing after
the holiday season, which typically provides for the return to normal industry
activity in [the first quarter],” said Sarine CEO David Block.


In the first nine months, sales dropped 15% to $45.7 million,
while profit slumped 60% to $5.15 million.