Mainboard-listed Sarin Technologies, the manufacturer of instruments for evaluating of diamonds and gems, says revenue and net profit rose 34% and 95% to US$8.4 million and US$0.8 million respectively for the three months ended 30 September 2010 (3QFY2010) compared to the corresponding period last year (3QFY2009).

Sarin says the group’s performance in 3QFY2010 was weaker when compared to 2QFY2010 and 1QFY2010, in which record performance was achieved. The weakness experienced in 3QFY2010 when compared to the two preceding quarters was a result of several factors such as the slow down in capital investment by customers after record capital expenditure in 1HFY2010, cautious market sentiment under current macroeconomic conditions, lower profit margins for diamond manufacturers due to the disparity in the price increases of rough and polished diamonds; and uncertainty concerning the flow of Zimbabwean rough diamonds into the market.

Going forward, the group expects deliveries of the Galaxy systems to continue in 4QFY2010. In addition, new service centres in southern Africa and Russia are scheduled to open in late 2010 or early 2011. The new centres are expected to facilitate future orders of Sarin’s inclusion mapping systems in these additional diamond industry centres. The group is also working on a launch of a Galaxy system for polished stones in 2011.