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LJ International Falls to Loss in Q2 on Litigation Expenses; Provides Guidance For Q3 - UpdateBy Rajesh Kumar, Section News
(RTTNews) - Friday, LJ International Inc. (JADE: News, Chart, Quote )engaged in the sale of precious stones, color gemstones and diamond jewelry announced a loss for the second quarter on impact of one-time litigation expenses and lower revenue.
The Hung Hom, Hong Kong-based company reported a net loss of $0.3 million or $0.01 per share, compared to a profit of $1.2 million, or $0.05 per share last year. The company said one-time litigation expenses of over $0.5 million dented its quarterly results. Excluding litigation expenses, the Company would have reported a net income of at least $0.2 million, or $0.01 per share
Quarterly revenues for the quarter declined 6% to $31.1 million from $33.1 million last year. Revenues from LJI's wholesale division were up 2% at $23.2 million from $22.7 million a year ago. Due to the temporary suspension of "Signature" line of jewelry, the company recorded a 24% fall in retail revenues to $7.9 million from $10.4 million a year ago. Excluding the Signature jewelry line, revenues totaled $7.9 million, up 70% from $4.6 million in the prior year quarter.
Looking ahead to the third quarter, the Company expects a net loss in a range of $0.2 million - $0.4 million, or $0.01 - $0.02 per share. In the prior year third quarter, the company has reported a net income of $0.5 million, or $0.02 per share. For the third quarter, the company expects revenues of approx. $32 million, while the previous year revenue was $37.8 million. Commenting on the results, Yu Chuan Yih, chairman of the company said "As in the first quarter of 2008, our latest results reflect a challenging environment for luxury consumer items such as jewelry amid the economic slowdown that has particularly affected our largest market, the U.S. We believe this economic weakness will continue and further negatively affect LJI's wholesale business in the second half of 2008. JADE is currently trading at $1.97, down $0.01 on a volume of 26K shares. by RTT Staff Writer For comments and feedback: contact editorial@rttnews.com
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