The Sarin Diamond Technologies Group has announced a 78% decline in revenue during the first half of 2009 to $4.7 million from US$ 21.9 million for the six months ending on June 30, 2008. This decline in revenue, which began in Q4 2008 and was exacerbated in Q1 2009, due to the global financial crisis and its impact on the diamond industry, led to a decline in demand for diamond technology products. Profitability declined significantly with a loss of $3.4 million for the six months ending on June 30, 2009, as compared to a profit of $5.1 million for the six months ending on June 30, 2008.

In response to the global slowdown and the resultant drop in revenues, Sarin took significant steps in Q4 2008 and Q1 2009 to reduce operating expenses. The diamond technology company reports that in H1 2009 overall operating expenses reached $4.8 million, as compared to $ 8.9 million in H1 2008, representing a 46% decrease.

Sarin reported that on a sequential basis, Q2 2009 revenue rebounded from the extremely depressed levels recorded in Q1 2009. Q2 2009 revenue increased by 246% as compared to Q1 2009, due to a partial recovery in diamond manufacturing activity, mainly in India. For Q2 2009, the diamond technology company reports that it experienced the full benefit of the additional cost cutting measures implemented during Q1 2009 that were not fully realized in Q1 2009. Despite a loss of $ 0.9 million in Q2 2009, Sarin Diamond Technologies reported positive cash flow from operating activities.