LJ International - JADE - Q1 2005 resultaten
LJ International Reports 20% Sales Gain in First Quarter
Revenue Beats Forecast as Jeweler's China Expansion Continues
HONG KONG and LOS ANGELES, Calif., May 12 /Xinhua-PRNewswire-FirstCall/ -- LJ International, Inc. (LJI) (Nasdaq: JADE - News), one of the fastest-growing jewelry companies in the world, today reported financial results for the first quarter, ending March 31, 2005. Revenue rose 20% over the first quarter of 2004. Earnings per fully diluted share were down $0.01 from a year earlier, reflecting the impact of additional shares issued from a recent private placement, higher interest expenses and costs related to the expansion of LJI's Chinese retail operation.
Revenue for the first quarter of 2005 totaled $17.44 million. This was about $1.4 million above the top range of earlier guidance for the quarter, and it was 20% above the $14.5 million reported in the first quarter of 2004. The Company indicated that the sharp rise in sales was due both to higher orders from existing and new customers in all markets, along with a modest contribution from sales at newly opened outlets of LJI's ENZO subsidiary in China. This represented the fifth consecutive quarter in which LJI recorded sales gains of 20% or more year-over-year.
Gross profit for the first quarter was $3.65 million, for a gross margin of 21%. This compares to gross profit of $3.44 million, or 24%, in the first quarter of 2004. The gross margin for the latest quarter improved sequentially from 17% in the fourth quarter of 2004. Selling, general and administrative expenses were $3.62 million. The Company showed an operating income in the first quarter of 2005 totaling $31,000, compared to operating income of $572,000 in the first quarter of 2004.
As a result, primarily of a sharp increase in interest expenses to $324,000 from $182,000 in 2004, net income in the first quarter of 2005 fell to $249,000 from $355,000 a year earlier. Earnings per fully diluted share over that time decreased to $0.02 from $0.03.
LJI Chairman and CEO Yu Chuan Yih commented, ''We are pleased to see another robust increase in sales, reflecting rising demand for our major customers in the U.S. and abroad. Most of the 20% increase was due to non-China sales, but we now have three Chinese retail outlets open -- with four more to come in May -- and these have started to make a contribution to overall revenue. For the near term, costs of our expansion into the Mainland China retail market will slow growth in net income even as sales continue to rise briskly, but we are confident that profit will once again grow at rates comparable to sales growth, or faster, as the start-up costs are absorbed. We also see sales continuing to expand in our older markets, with no significant clouds on the horizon.''
Balance Sheet Remains Strong
LJI's balance sheet remained in its historical ranges, with cash and cash equivalents (including restricted cash) totaling $8.8 million on March 31, 2005, compared to $9.62 million on December 31, 2004. Restricted cash rose to $7.27 million from $6.39 million during the first quarter, while unrestricted cash and cash equivalents fell to $1.54 million from $3.23 million. Long-term debt was minimal and little changed, rising to $66,000 from $58,000.
Company Provides Second Quarter Guidance
LJI projects revenues for the second quarter to come in at a range of $17.5 to $18 million, representing an increase of 7% to 10% from a year ago. Net income is expected to come in at a range of $250,000 to $350,000, or $0.02 to $0.03 cents per fully diluted share.
Revenue Beats Forecast as Jeweler's China Expansion Continues
HONG KONG and LOS ANGELES, Calif., May 12 /Xinhua-PRNewswire-FirstCall/ -- LJ International, Inc. (LJI) (Nasdaq: JADE - News), one of the fastest-growing jewelry companies in the world, today reported financial results for the first quarter, ending March 31, 2005. Revenue rose 20% over the first quarter of 2004. Earnings per fully diluted share were down $0.01 from a year earlier, reflecting the impact of additional shares issued from a recent private placement, higher interest expenses and costs related to the expansion of LJI's Chinese retail operation.
Revenue for the first quarter of 2005 totaled $17.44 million. This was about $1.4 million above the top range of earlier guidance for the quarter, and it was 20% above the $14.5 million reported in the first quarter of 2004. The Company indicated that the sharp rise in sales was due both to higher orders from existing and new customers in all markets, along with a modest contribution from sales at newly opened outlets of LJI's ENZO subsidiary in China. This represented the fifth consecutive quarter in which LJI recorded sales gains of 20% or more year-over-year.
Gross profit for the first quarter was $3.65 million, for a gross margin of 21%. This compares to gross profit of $3.44 million, or 24%, in the first quarter of 2004. The gross margin for the latest quarter improved sequentially from 17% in the fourth quarter of 2004. Selling, general and administrative expenses were $3.62 million. The Company showed an operating income in the first quarter of 2005 totaling $31,000, compared to operating income of $572,000 in the first quarter of 2004.
As a result, primarily of a sharp increase in interest expenses to $324,000 from $182,000 in 2004, net income in the first quarter of 2005 fell to $249,000 from $355,000 a year earlier. Earnings per fully diluted share over that time decreased to $0.02 from $0.03.
LJI Chairman and CEO Yu Chuan Yih commented, ''We are pleased to see another robust increase in sales, reflecting rising demand for our major customers in the U.S. and abroad. Most of the 20% increase was due to non-China sales, but we now have three Chinese retail outlets open -- with four more to come in May -- and these have started to make a contribution to overall revenue. For the near term, costs of our expansion into the Mainland China retail market will slow growth in net income even as sales continue to rise briskly, but we are confident that profit will once again grow at rates comparable to sales growth, or faster, as the start-up costs are absorbed. We also see sales continuing to expand in our older markets, with no significant clouds on the horizon.''
Balance Sheet Remains Strong
LJI's balance sheet remained in its historical ranges, with cash and cash equivalents (including restricted cash) totaling $8.8 million on March 31, 2005, compared to $9.62 million on December 31, 2004. Restricted cash rose to $7.27 million from $6.39 million during the first quarter, while unrestricted cash and cash equivalents fell to $1.54 million from $3.23 million. Long-term debt was minimal and little changed, rising to $66,000 from $58,000.
Company Provides Second Quarter Guidance
LJI projects revenues for the second quarter to come in at a range of $17.5 to $18 million, representing an increase of 7% to 10% from a year ago. Net income is expected to come in at a range of $250,000 to $350,000, or $0.02 to $0.03 cents per fully diluted share.
posted at 1:23 p.m.
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