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Sarine Technologies expects 'nominal net profit' in Q3
MAINBOARD-LISTED Sarine Technologies, which makes precision technology products used in diamond and gemstone production, said it expects to post a "nominal net profit" in the third quarter.
This comes as the ongoing trade disputes between the US and China continued to impair demand in the Chinese market by an estimated 10 per cent, and the issue of lab-grown diamonds continued to be a distraction, the group said on Thursday.
Sarine Tech said: "Current indications are that our revenues for the third quarter will be some 20 per cent better than those of the second quarter, approximately US$14 million. Our expenses continue to be restrained, with sequential slight reductions in research and development and general and administrative expenses, the latter due to our having concluded the current trial phase of our IP litigation in India, offset by a slight increase in sales and marketing."
The decline in polishing activity due to the reduced quantities of rough stones entering the pipeline also resulted in a decrease in the group's revenues from inclusion-mapping services by some 18 per cent sequentially, less than the decrease in the rough quantities being polished, it said.
"Most of this decrease was realised in our service centre activities, just over half of which are in Israel and Belgium, which are also affected by the seasonal summer closures of these bourses in August," it added.
Over the quarter, Sarine Tech said it delivered a new record of 39 inclusion-mapping systems from its Galaxy brand family, outpacing deliveries in the first and second quarters this year.
The group's full financial report is expected to be released on Nov 10.
Sarine Tech shares fell half a Singapore cent or 2.04 per cent to close at S$0.24 on Thursday.