MORRISVILLE, N.C., Sept. 2 /PRNewswire/ -- C3, Inc. (NASDAQ:CTHR), the
exclusive worldwide manufacturer and marketer of moissanite gemstones -- a
proprietary, colorless, lab-created gemstone -- received the initial shipment
of moissanite crystals from the three-inch diameter crystal growers
(as announced May 11, 1999) from Cree Research, Inc. (NASDAQ:CREE).
Due to the early stages of development for the three-inch diameter crystal
manufacturing process, C3's management team did not expect to receive any
useable material from these crystals. However, early testing suggests that a
significant portion of the crystals can be utilized to make gemstones. The
final yield from these particular crystals will be determined after the
crystals are cut into gemstones and inspected by C3's grading experts.
With half of the three-inch diameter crystal growers on-line, C3's
research and development commitment to Cree dropped from $240,000 to $120,000
per month effective September 1, 1999 in accordance with the agreement between
the two companies. The remainder of the three-inch growers is expected to be
on-line by the end of the year.
In other corporate news, as C3 continues to expand its distribution
channels, the company is developing a deeper understanding of the impact of
seasonality on gemstone shipments. The summer months, both domestically and
abroad, are traditionally the slowest time of the year for jewelry retailers
and have resulted in a slower pace of sales than that of the second quarter
for C3. However, based upon feedback from domestic retailers and
international distributors, the company is confident it will meet its sales
goals for the second half of 1999.
Jeff N. Hunter, chairman and chief executive officer of C3, said, "We are
gaining further confidence in our supply of moissanite gemstones and will soon
launch a national advertising campaign designed to build powerful brand
identity and support our sales for this holiday season and into 2000." |
