|Synthetic (lab-grown) diamond producer Scio Diamond Technology Corp. (Scio) has published the financial results for its fiscal 2017 first quarter ended June 30, 2016.
Revenue for the period is reported at US$185,061, higher by 7 percent when compared with the US$172,175 revenue in Q1 Fiscal 2016, which Scio says is the result of a shift in sales focus to higher-priced white diamond gemstones. However, the company generated a loss from operations of US$1,181,675 - almost 40 percent higher than Q1 fiscal 2016 - reflecting a US$131,782 increase (31.7 percent) in manufacturing costs resulting from Scio's shift to producing white diamond gemstones, along with higher expenses of salaries and benefits, and professional and consulting fees compared with the similar Q1 fiscal 2016 period.
The company reports a net loss for the quarter of US$1.26 million, compared with a net loss of US$0.877 million in Q1 fiscal 2016.
Commenting on the results, Scio's CEO Gerald McGuire noted the company's increased production capacity and focus on producing white diamond gemstones. The company expects production yields to improve and overall diamond industry demand to increase through to the end of 2016."Over the past two months, we've made significant progress," says McGuire. "The carat weight of our diamonds continues to increase, our color and clarity capabilities continue to improve, our customer base is growing, and we are beginning to see the resulting improvements in our financials. While short-term cash requirements continue to challenge our efforts, we are optimistic about the market potential for our lab-grown diamonds, and are encouraged by the increasing demand we are seeing from our customers."