NEWPORT BEACH, Calif., March 2 /PRNewswire-FirstCall/ -- Collectors
Universe, Inc. (Nasdaq: CLCT), a leading provider of value-added
authentication and grading services to dealers and collectors of high-value
collectibles, today announced that it has decided to exit the business of
authenticating and grading diamonds and colored gemstones, effective
immediately. The Company will be continuing to license the Gemprint
identification technology and related patents and Howard Pomerantz continues
to manage the licensing effort.
Michael Haynes, Chief Executive Officer, stated, "We incurred impairment
charges with respect to our jewelry businesses at June 30, 2008 and again at
December 31, 2008, due to the severity of the economic recession and the
worsening of the credit crisis in the United States and the resulting
uncertainties as to the level of revenues we could expect from our jewelry
businesses in future periods. The continuation and possible extension of these
economic conditions has led us to conclude that it is unlikely these
businesses will be able to achieve the goals we had established for them when
we first acquired those companies. As a consequence, management and the board
of directors have decided to exit the jewelry businesses, which will enable us
to give full attention to and focus our significant resources, energy and
liquidity on our core businesses in collectibles, where we have decades of
experience and a proven record of success."
Haynes continued, "Our collectibles grading businesses are fundamentally
healthy with strong market positions and positive cash flows and we are
continuing to lower costs and increase efficiencies in these areas.
Importantly, the Company's overall financial condition remains excellent."
About Collectors Universe
Collectors Universe, Inc. is a leading provider of value added services to
the high-value collectibles markets. The Company authenticates and grades
collectible coins, sports cards, autographs, stamps. The Company also
compiles and publishes authoritative information about United States and world
coins, collectible sports cards and sports memorabilia, and collectible
stamps. This information is accessible to collectors and dealers at the
Company's web site, http://www.collectors.com, and is also published in print.
Cautionary Statements Regarding Forward Looking Information
This news release contains statements regarding our expectations, views
and beliefs about our future financial performance that are "forward-looking
statements" as defined in the Private Securities Litigation Reform Act of
1995. Forward-looking statements can be identified by the use of words such
as "believe," "expect," "anticipate," "intend," "plan," "estimate," "project,"
or words of similar meaning, or future or conditional verbs such as "will,"
"would," "should," "could," or "may." Due to a number of risks and
uncertainties to which our business is subject, our future financial
performance may differ, possibly materially, from our expected financial
performance as set forth in the forward looking statements contained in this
news release. Those risks and uncertainties include, but are not limited to,
the risk that the current economic recession will worsen or continue for an
extended period of time or that changes in conditions in the collectibles
markets in which we operate, such as a possible decline in the popularity of
some high-end collectibles could reduce, possibly significantly, the volume of
grading submissions to us and, therefore, the grading fees we generate; the
risk that we will not succeed in growing our collectibles businesses
significantly, which could limit the extent to which we will be able to
improve margins and increase profits; the expenses of discontinuing the
jewelry businesses, which will adversely impact, in particular, our operating
results during the balance of the current fiscal year; and the seasonality of
our business which can cause fluctuations in quarterly operating results and
quarterly cash flows.
Additional information regarding these risks and information regarding
other risks and uncertainties to which our business is subject is contained in
our Annual Report on Form 10-K for our fiscal year ended June 30, 2008 and our
Quarterly Report on Form 10-Q for the quarter ended December 31, 2008 which we
filed with the Securities and Exchange Commission. Due to these risks and
uncertainties, readers are cautioned not to place undue reliance on the
forward-looking statements contained in this news release or in that Annual
Report, which speak only as of their respective dates. We also disclaim any
obligation to update or revise any of the forward-looking statements as a
result of new information, future events or otherwise, except as may be
required by law or NASDAQ rules.
Collectors Universe, Inc.
Joseph Wallace, Chief Financial Officer of Collectors Universe,
Web Site: http://www.collectors.com