Sarine Technologies posted a net loss in the first quarter as companies paused a large portion of diamond-scanning activities amid concerns over tariffs.
The company reported a net loss of $100,000 for the three months that ended March 31. That compares with a profit of $600,000 during the same period a year ago. Meanwhile, revenue fell 31% year on year to $7.7 million.
“The import tariffs implemented by the US administration…have caused high levels of uncertainty across the supply chain,” the company said last week. “As the tariffs dynamics are in a state of flux, there was an initial burst of importation activity to beat the tariffs, followed by a wait-and-see attitude. The challenging market conditions negatively impacted both revenue from capital equipment sales as well as recurring revenues due to lower quantities of rough entering the pipeline.”
Due to the current challenging environment, Sarine is working on strategic initiatives to manage its costs, including shifting its manufacturing facilities to its India subsidiary. It hopes to complete that project by the end of the first half, it noted.
The company’s diamond-planning MVP service has been proving popular, with the number of diamonds planned up 40% compared to the previous three months. The average selling price of the service per diamond planned also increased, as a result of the platform’s expansion into rough stones larger than 40 points, Sarine said. The company is working on adapting the service for even larger diamonds, 2 carats and above, with an initial pilot expected in the second half of the year. The challenging market conditions have not impacted Sarine’s lab-grown business, it added.
Image: The Sarine lab in Israel. (Sarine Technologies)
