Income rises, but Collectors Universe posts a loss

Collectors Universe said net revenues for the fiscal year that ended June 30 increased more than 9 percent, but marketing investments in its new gemstone grading and certification division contributed to a net loss of $515,000 compared to a profit of $3.7 million in fiscal 2006.

Revenues increased to $40.5 million for the fiscal year. For the year, the number of sports cards submitted to the company increased from roughly 1,199,000 to more than 1,262,000. Autograph submissions declined from 181,000 to 170,000. The company’s largest grading and authentication division, coins, saw submissions decline from 1,789,000 last year to 1,559,000 this year.

For the fourth quarter of its fiscal year, net revenues totaled $10.7 million, compared to $10.6 million for the same period of the prior fiscal year. Net loss for the quarter was $840,000, compared with net income of $904,000 a year ago.

“This is our first 12-month cycle in the jewelry group where we have invested in promotional activity and operations to lay the foundation for our future growth,” said Collectors Universe CEO Michael Haynes. “For our collectibles businesses, we have invested in technology systems that we expect will both improve operating efficiency and expand our markets with web-based initiatives.”