Charles & Colvard 4Q Profit Rises

(AP) Charles & Colvard 4th-Quarter Earnings Climb 42 Percent As More Stores Sell Its Moissanite

Wednesday February 14, 4:55 pm ET

MORRISVILLE, N.C. (AP) -- Charles & Colvard Ltd. -- which makes moissanite, a lab-created, diamond-like stone -- on Wednesday posted a 42 percent rise in fourth-quarter profit as the company expanded its distribution network.

Net income increased to $1.3 million, or 7 cents per share, from $884,258, or 5 cents per share, a year ago.

Sales rose 3 percent to $12.1 million from $11.7 million a year ago, as the number of retailers selling moissanite increased. However, the company said its top department store chains and mall retailers raised prices on moissanite products, which hurt demand.

In the U.S., sales edged up 1 percent to $11 million, while international sales jumped 31 percent to $1.1 million.

The company shipped 69,700 carats last quarter, compared with 68,900 carats in the 2005 quarter. U.S. shipments slipped 1 percent, while international shipments increased 32 percent.

Analysts surveyed by Thomson Financial expected earnings of 6 cents per share on sales of $13.1 million.

Charles & Colvard shares rose 11 cents to $7.82 in the aftermarket.