Charles & Colvard reported stronger sales of its man-made moissanite gemstones during the first quarter.

The Morrisville company also made money during the three-month period, the first profitable quarter in nearly three years.

The results show that efforts to attract new retailers, distributors and consumers "are taking hold," said CEO Randy N. McCullough, on a conference call this afternoon with analysts. Charles & Colvard hired McCullough last fall to revive sales that sank even before the recession curbed consumer spending.

One effort involves a new online store for "friends and family," including shareholders, that will sell fine jewelry and moissanite gems at a discount. That site is expected to go live Wednesday morning online here.

Charles & Colvard named a new CEO this morning, the fifth executive to take the top spot during the past 18 months at the maker of moissanite gemstones.

Randy N. McCullough, 56, has spent 36 years in the jewelry business, most recently as CEO of Samuels Jewelers, a chain with 150 stores.

He takes the helm at Charles & Colvard as the recession dampens interest in fine jewelry using the Morrisville company's manmade gems. In August, the company reported that second-quarter sales fell 64 percent to $1.3 million.

Charles & Colvard is scheduled to report its third-quarter results on Thursday. The company has been cutting costs as its sales have slumped, and it now employs 25 people.

McCullough replaces interim CEO George Cattermole, who is chairman.

With the new CEO and several other new managers, "we believe we have the right cross-section of talent that can execute the strategic initiatives to increase shareholder value and to reintroduce Charles & Colvard to the world," Cattermole said in a prepared statement.

Charles & Colvard's stock rose 5 cents to 66 cents this morning. The stock hasn't traded above $1 since June 2008.