Sarin Diamond Technologies has announced a 90% decline in revenues during this year’s first quarter in comparison to the parallel period last year. The company attributes the decline to a drop in demand for the company’s diamond technology equipment during the fourth quarter of 2008 due to the impact of the global financial crisis on the diamond industry.



The diamond technology company also had significantly lower gross profit and margin in the Q1 of 2009, due to the fact that the fixed cost portion of the cost of goods, alongside non-cash amortization of the Quazer knowhow, which is taken every quarter ($106,000), and a write-off of $225,000 in inventory items, was spread over reduced sales.



The diamond technology company recorded a net loss of $2.5 million during Q1 of this year in comparison to a net profit of $2 million during the comparable period in 2008.



Sarin Diamond Technologies announced that it has taken steps to reduce operating expenses. In this year’s first quarter operating expenses came to $2.4 million in comparison to $4.3 million in the comparable period last year, constituting a 43% reduction.



Sarin also reduced R&D costs by 41.5% to $0.85 million during the first quarter as compared to $1.45 million during last year’s first quarter.