pSingapore Exchange Mainboard-listed Sarin Technologies Ltd, which develops, manufacturers and markets and sells precision technology products for the planning, processing, evaluation and measurement of diamonds and gems, has announced its financial results for the quarter and full year ended 31 December 2009./p
pThe year 2009 was characterised by a weak first half followed by a strong recovery in the second half. Underpinned by the continued recovery of the diamond manufacturing industry, Sarin recorded a 314% increase in Q4 2009 revenue to US$ 10.4 million. The Grouprsquo;s strong sales performance resulted in net profit surging to US$4.5 million in Q4 2009 ndash; a record net profit for a quarter./p
pDuring the quarter, revenue from India rose 969% (over Q4 2008) to US$8.4 million as diamond manufacturers there accelerated capital investment to keep focused with the changing market demand in China and elsewhere. In addition, the Group also made its first commercial sale of the Galaxy 1000 system to a leading diamond manufacturer in India. With the successful roll-out of Galaxy 1000 both in service centres and through commercial sales, contribution from the new product grew to over 10% of Q4 2009 Group revenue./p
pIn H1 2009, the Group registered revenue of only US$4.7 million and a net loss of US$3.4 million due to the global economic crisis and the subsequent decline in industry activity. With the strong performance in H2 2009, full year revenue was lifted to US$21.4 million. Together with the realisation of the full benefits from broad-based cost-cutting measures, net profit decreased by only 4% to US$1.5 million in FY2009./p
pProspects/p
pWhen evaluating the impact of the economic crisis on the Grouprsquo;s business, Mr. Uzi Levami, Sarinrsquo;s CEO, said, ldquo;Traditionally, evolution is a slow process in the diamond industry. However, the abrupt changes in market conditions during this economic crisis required diamond manufacturers to react faster than ever in order to keep up with changing demands. As the adoption of technology allows diamond manufacturers to make the necessary adaptations more quickly and effectively than retraining existing manpower, such market development resulted in increased demand for Sarinrsquo;s rough planning and polishing optimisation products in the second half of 2009.rdquo; Although this trend is likely to continue into 2010, given the prevailing uncertainties in the current global economic environment, the Group remains watchful of any negative developments that may affect its profitability./p
pDuring Q4 2009, the commercialization of Galaxy 1000 gathered momentum, with the expansion of capacity in the service centres in India and Israel, opening of a take-in window in Belgium as well as delivery of the first Galaxy 1000 system to a customer. In January 2010, the Group opened a full service centre in Belgium and plans to subsequently expand the rollout of Galaxy 1000 to other major diamond trading and manufacturing centres, such as the USA, Africa and China, later in FY2010. In addition, Galaxy 1000 systems will be sold and delivered to meet the growing demand from leading customers. The introduction of Galaxy 1000 has also contributed positively to the demand for Sarinrsquo;s other rough planning products, such as the DiaExpert Eye. Ramp;D efforts will continue to focus on optimal integration of the planning products with Galaxy 1000./p
pThe recent launch of the Grouprsquo;s latest polished planning products, the Instructor software and the DiaMension HD, were met with enthusiastic interest. ldquo;The capability of providing instructions on necessary corrective actions and/or possible asymmetric enhancements to polished diamonds is an innovative feature we believe unique to our products. These products target a need which until now has not been fully addressed, and we believe the market potential is 90% untapped,rdquo; commented Mr. Levami. The Group expects this pair of new products to be a significant growth driver in 2010 and beyond./p
pIn 2010, the Group intends to leverage on the Galaxy 1000 technology for the expansion of market share in all related product lines as well as in all markets, while increasing overall revenues and profits./p
pAbout Sarin Technologies:br /
Established in 1988, Sarin Technologies Ltd. is a worldwide leader in the development and manufacturing of advanced planning, evaluation and measurement systems for diamond and gemstone production. Sarin products include diamond cut and color grading tools, inclusion mapping system, rough diamond optimization systems and laser-marking and inscription machines. Sarin systems have become an essential gemology tool in every properly equipped gem lab, diamond appraisal business and manufacturing plant, and are today considered essential items by both diamond dealers and retailers./p
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