Market Challenges Lead to Sarine Profit Drop

RAPAPORT... Profit at Sarine Technologies plunged in the fourthquarter, as sentiment in the diamond industry softened amid weaker consumer spending. The diamond technology company reported net profit fell 85% year on year to $93,000 for the threemonths that ended December 31. Uncertainties in China and tighter bank creditto India's manufacturing sector resulted in lower capital-equipment sales andreduced recurring revenues, Sarine explained on Sunday. Increased income tax expenses on thewrite-down of certain deferred tax assets also affected its bottom line. Revenue for theperiod declined 6% to $12.2 million. Sales in India, Sarine's biggest market, fell 20% to $5.9million for the October-to-December period. North American sales jumped 10% to$222,000, while in Israel, revenue slumped 33% to $786,000. Revenue for the full yearslipped 0.2% to $58.5 million, while profit increased 32% to $7.6 million. Sarine believes "adverse sentiments are likely to persist"in 2019, primarily due to credit tightening by Indian banks.Image: Sarine Technologies headquarters in Hod HaSharon, Israel. (Sarine Technologies)