04
Chairman’s Statement
Dear Fellow Shareholders,
I am very pleased to report that this past year, 2014, has been another
record year, notwithstanding the significant negative industry sentiment
which developed in the last four months of the year. Our performance
has been underpinned, once again, by continued Galaxy™ / Solaris™
penetration and accelerated usage, as the installed base expands.
This year, 2015, should, market conditions permitting, see further
accelerated sales of our Galaxy™ line of products and services, including,
possibly, initial sales of a system for smaller stone sizes (0.20 to 0.85
carats rough). Along with the broadened marketing of the Sarine Light™
and the Sarine Loupe™, both independently and bundled together in the
Sarine Profile™ online platform, this should further bolster our recurring
revenue stream from value-added products and services to both the rough
diamond manufacturing industry and the polished diamond trade. The
anticipated rollout, possibly late in the year, of the Allegro™ for the non-
diamond gemstone manufacturing industry, should even further enhance
our recurrent revenue.
Significant Events
During 2014 our attention continued to be divided between the continued
expansion of the installed base of the Galaxy™ family of products and the
continued refinement and launch of our polished diamond trade-related
products – the Sarine Light™ and the Sarine Loupe™.
Sales of Galaxy™ systems were a bit weaker than we had anticipated, due
to weaker than expected third and fourth quarters, and yet we ended the
year with a record number of deliveries – 48, bringing our total installed
base at year end to 190 systems. We expect deliveries to accelerate further
in 2015, as industry conditions rebound.
During 2014 we continued our strategic move into the polished diamond
trade. We continue to strongly believe that this industry segment offers
substantial growth potential for the Group, as it represents over two thirds
of the added value in the diamond food chain and garnishes over half of
the total profits realised in the industry. The Sarine Loupe™ was launched
in the third quarter of the year, and now offers multiple levels of enhanced
imagery, which we believe are unmatched by any competing product. We
are seeing significant interest in the Sarine Light™ and Sarine Loupe™
systems, and have launched a unified sales platform to leverage this interest
– the Sarine Profile™, which we are currently offering primarily to our
customers in the U.S., India, Israel and Japan. To avail our drive into the
diamond industry downstream (the polished diamond wholesale and retail
trades), in early 2014 we opened an office in New York, on 47th Street
in the heart of the diamond trade centre, and will be opening a regional
sales and support hub in Hong Kong in the upcoming months. This will also
enable us to expand our sales activities into additional countries in Asia –
Thailand, Indonesia, Malaysia and Singapore.
Sarine Technologies Ltd. • Annual Report
2014
