Charles & Colvard, Ltd (CTHR) saw its loss narrow to $1.16 million, or $0.06 a share for the quarter ended Sep. 30, 2016. In the previous year period, the company reported a loss of $1.97 million, or $0.10 a share. Revenue during the quarter went up marginally by 2.21 percent to $5.21 million from $5.10 million in the previous year period. Gross margin for the quarter expanded 388 basis points over the previous year period to 38.21 percent. Operating margin for the quarter stood at negative 21.94 percent as compared to a negative 11.45 percent for the previous year period.
Operating loss for the quarter was $1.14 million, compared with an operating loss of $0.58 million in the previous year period.
Suzanne Miglucci, President and CEO of Charles & Colvard, said, “The transformation of Charles & Colvard is well underway with significant recent accomplishments as we execute on our marketing and distribution strategies. We launched our consolidated and upgraded web presence, providing an expanded product selection of new bridal and fashion-forward Forever One™ jewelry targeted to millennial customers looking for high quality, socially responsible options. We continued the expansion of our omni-channel distribution network, with the addition of several new online marketplaces, including a partnership with Gemvara, a leading online retailer of customizable fine jewelry.”
Operating cash flow improves significantly
Charles & Colvard, Ltd has generated cash of $4.45 million from operating activities during the nine month period, up 165.71 percent or $2.77 million, when compared with the last year period. The company has spent $0.04 million cash to meet investing activities during the nine month period as against cash outgo of $0.25 million in the last year period.
Cash and cash equivalents stood at $9.68 million as on Sep. 30, 2016, up 72.76 percent or $4.08 million from $5.60 million on Sep. 30, 2015.
Working capital increases marginally
Charles & Colvard, Ltd has recorded an increase in the working capital over the last year. It stood at $18.09 million as at Sep. 30, 2016, up 1.39 percent or $0.25 million from $17.85 million on Sep. 30, 2015. Current ratio was at 5.07 as on Sep. 30, 2016, up from 4.97 on Sep. 30, 2015.
Cash conversion cycle (CCC) has decreased to 102 days for the quarter from 335 days for the last year period. Days sales outstanding went down to 57 days for the quarter compared with 66 days for the same period last year.
Days inventory outstanding has decreased to 144 days for the quarter compared with 360 days for the previous year period. At the same time, days payable outstanding went up to 99 days for the quarter from 91 for the same period last year.
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