Sarine Technologies’ revenue jumped 20% year on year to $14.5 million in the third quarter as an increase in machine purchases compensated for a slowdown in manufacturing activity.
The period saw the launch of the company’s Meteorite Plus machine, which enables more cost-effective scanning of small rough diamonds. As a result, sales of capital equipment — customers’ one-off machine acquisitions — surged 53%, Sarine said Sunday.
Recurring revenues — fees clients pay on an ongoing basis, such as for diamond scans — fell 7% year on year, the Israel-based company explained. It blamed the impact of geopolitical challenges, inflation, higher energy costs and China’s Covid-19 policy on consumer spending and the diamond trade.
“Midstream polishing activities decreased somewhat as uncertainties slightly reduced the quantities of rough diamonds entering the pipeline, and the summer vacations in the US and European markets slowed demand,” Sarine said.
Net profit rose 12% to $2.2 million, the company added.
Image: Rough-diamond sorting. (Shutterstock)