Moissanite gemstone maker Charles & Colvard reported a net loss in the first quarter despite sales increasing 40 percent to $4.2 million.

The Morrisville company reported a net loss of $376,000, or 2 cents per share, compared to a net loss of $236,000, or 1 cent per share, in the first quarter of 2011.

Operating expenses increased 53 percent in the quarter, driven mostly by increased marketing costs.

The company said it has also added personnel to support its effort to sell finished jewelry products directly to consumers at its website www.moissanite.com.
 
Charles & Colvard initiated a series of marketing and branding initiatives last year that have helped boost sales of its finished jewelry.

The company's largest customer is Jewelry Television. In a release, CEO Randy McCullough said sales of finished jewelry accounted for all of the company's revenue increase in the first quarter.

"We expect our finished jewelry business to continue to grow, and in addition, our ability to produce jewelry supports all of our customer direct initiatives," he said.

Charles & Colvard's stock, which closed at $4.42 on Friday, is up 70 percent this year.

Moissanite gemstone maker Charles & Colvard reported revenue of $1.8 million, or 9 cents per diluted share, in the fourth quarter as sales more than doubled compared to the same period in 2010.

The Morrisville company had net income of $1.6 million for the year, the same as it recorded in 2010.

Net sales in the fourth quarter were $7.2 million, up from $3.5 million during the same period in 2010.

Charles & Colvard's stock jumped 11 percent in a single day in late January after the company announced that net sales would be considerably higher in the fourth quarter.
 

Moissanite gemstone maker Charles & Colvard has extended its lease in Morrisville's Perimeter Park for an additional five and a half years.

The company leases 16,500 square feet in EastRidge, a business park with 477,000 square feet of office and flex space.

The lease extension was outlined in a filing with the Securities and Exchange Commission.

Charles & Colvard got a reduced rental rate and a 50 percent rent abatement for the first 12 months of the extension.

The rental rate will increase 3 percent annually, and the company will have an option to terminate the lease in 2014.

Charles & Colvard's lease was originally set to expire in July.

It remains a great time for stable companies to have their lease come up, as landlords are being very aggressive in trying to keep those that they already have.

"We did leverage the market a little bit," said Timothy Krist, the company's chief financial officer.