Just Imagine what Q3 will look like with the 600k order on top of the increase in sales reported here, along with the fact that the sales work has been done for the new retail chain order making this new partnership venture pure profit....
from the 10Q
Sales
Net sales for the three months ended June 30, 2012, were $450,553, compared to $364,661 for the three months ended June 30, 2011. This resulted in an increase of $85,892 or 23.55% from the comparable period. The increase in sales is primarily a result of our efforts to introduce new products and to expand our customer base outside the United States and into Europe and Asia.
Typically, revenues experience significant seasonal volatility in the jewelry industry. The first two quarters of any given year typically represent approximately 15%-25% of total year revenues, based on historic results. The holiday buying season during the last two quarters of every year typically account for the remainder of annual sales.
Cost of Sales
Cost of sales for the three months ended June 30, 2012, were $171,002, an increase of $48,712, or 39.83%, from $122,290 for the three months ended June 30, 2011. The increase in cost of sales relative to sales is primarily due to selling old inventory at a higher margin because of the increase of the price of metals and diamonds.
Gross Profit
During the three months ended June 30, 2012, our gross profit as a percentage of sales was 62.05%, compared to a gross profit as a percentage of sales of 66.46% for the three months ended June 30, 2011. This decrease in gross profit percentage during the three months ended June 30, 2012 was primarily attributable to selling old Inventory as described above.
