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Sarine Technologies recorded a loss for the first half of the year, as its operational expenses grew due to a weaker US dollar against the Israeli shekel.
The company’s loss expanded to $3.5 million for the six months that ended June 30, compared to $166,000 in the same period last year, it reported Monday.
Revenue at the Israel-based supplier of diamond-grading technology slipped 6% year on year to $14.4 million. Lower processing volumes of natural diamonds in the manufacturing sector amid growing competition from lab-grown continued to impact Sarine.
However, the company’s new services saw positive traction. Its Most Valuable Plan (MVP) rough-planning service broadened to more sizes and qualities, while GCAL by Sarine’s higher-end grading reports helped differentiate premium lab-grown diamonds from commoditized ones. During the period, GCAL grading grew over 50%, while MVP revenue more than doubled, helping offset the impact of lower rough supply on Sarine’s traditional natural-diamond business.
The group also reported the revenue of its associate Kitov.ai more than doubled to $1.5 million, mainly thanks to repeat orders from its core aerospace and defense customers in Israel and overseas. The company, of which Sarine owns 33%, also addresses challenges in the diamond industry.
Sarine expects the expansion in grading revenue during the first half of the year to continue as it captures a larger market share with GCAL’s reports. In the second half, the company will also open a GCAL jewelry evaluation and documentation center in Mumbai, complementing its existing diamond-grading lab in Surat and expanding services to meet customer needs and help streamline supply chains.
Image: Sarine’s technology lab in Israel. (Sarine Technologies)
