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.