Sarine Sees Profit Following Cost Cuts

RAPAPORT... Sarine Technologies moved into the black in 2020 as deep cost cuts enabled the supplier of diamond-manufacturing equipment to weather the Covid-19 crisis.The Israel-based company reported a net profit of $2.4 million for the full year, compared with a loss of $1.4 million in 2019. This came despite a 20% drop in revenue to $41 million, Sarine reported Monday."The group took aggressive proactive steps from late March 2020 to reduce its cost structure in light of the pandemic crisis, and prudently cut all nonessential activities," the company explained. It paused operations such as marketing and manufacturing, furloughed its staff members in line with Israeli government support programs, and reduced the remaining workers' pay. It focused its expenses mainly on research and development.Sales of equipment to diamond polishers slid across the world as the pandemic impacted the global supply chain, canceling out a positive start to the year. Revenue from India, the largest manufacturing center, fell 21% to $28.6 million for the full year.Second-half revenue slumped 36% year on year to $18.6 million, as uncertainty in the market continued, Sarine noted. Profit for the period declined 17% to $1.2 million.Image: Sarine Technologies headquarters in Hod HaSharon, Israel. (Sarine Technologies)