Cyanotech Corporation (Nasdaq Capital Market: CYAN), a world leader in microalgae-based, high-value nutrition and health products, today announced financial results for the second quarter and first six months of fiscal 2010, ended September 30, 2009.
Second Quarter Fiscal 2010
Revenues for the second quarter of fiscal 2010 increased 20% to $3,925,000, compared to revenues of $3,274,000 for the second quarter of fiscal 2009. Gross profit was $1,762,000, with gross profit margin of 45%, in the current quarter compared to a gross profit of $1,378,000 and gross profit margin of 42% reported for the same quarter in 2009. Net income increased 267% to $599,000, or $0.11 per diluted share, compared to $163,000, or $0.03 per diluted share for the second quarter of fiscal 2009.
Cash and cash equivalents were $1,100,000 at September 30, 2009 compared to the March 31, 2009 balance of $977,000. Working capital increased to $4,648,000 at September 30, 2009 compared to $3,892,000 at March 31, 2009.
"These results affirm the company's strategy of focusing on and building sound business fundamentals throughout the organization," said Andrew H. Jacobson, President and CEO. "Improved production levels increased inventory, allowing better customer service. Continued cost containment delivered margin growth. Sustained high quality continued our nutritional leadership and our dedicated employees made it all possible."
Sales of both of Cyanotech's core products, Spirulina Pacifica(R) and BioAstin(R) Natural Astaxanthin, grew during the second quarter. The Company again delivered margin growth, resulting in higher income from the increased sales.
"We are looking forward to the complete roll out of our new Nutrex branding in the second half of 2010 and the introduction of a number of innovative products featuring Hawaiian Spirulina Pacifica(R) and BioAstin(R) Natural Astaxanthin," concluded Mr. Jacobson.
First Six Months Fiscal 2010
Revenues for the first six months of fiscal 2010 increased 14% to $7,946,000, compared to revenues of $6,975,000 for the first six months of fiscal 2009. Gross profit was $3,495,000, with gross profit margin of 44%, compared to a gross profit of $2,682,000 and gross profit margin of 38% reported for the same period in 2009. Net income increased 133% to $1,012,000, or $0.19 per diluted share, compared to $434,000, or $0.08 per diluted share for the first six months of fiscal 2009.
About Cyanotech -- Cyanotech Corporation, a world leader in microalgae technology, produces BioAstin(R) Natural Astaxanthin and Hawaiian Spirulina Pacifica(R) -- all natural, functional nutrients that leverage our experience and reputation for quality, building nutritional brands which promote health and well-being. Cyanotech's Spirulina products offer complete nutrition, and augment energy and immune response. They are FDA reviewed and accepted as Generally Recognized as Safe (GRAS) for use in food products. BioAstin's superior antioxidant activity and ability to support and maintain a natural anti-inflammatory response enhance skin, muscle and joint health. All Cyanotech products are produced from microalgae grown at its 90-acre facility in Kona, Hawaii using patented and proprietary technology. Cyanotech distributes to nutritional supplement, nutraceutical and cosmeceutical manufacturers and marketers in more than 40 countries worldwide. Cyanotech was the first microalgae company in the world to obtain quality management standards ISO 9001:2000 certification and is GMP-certified by the Natural Products Association(TM). Visit www.cyanotech.com for more information.
"Safe Harbor" Statement under the Private Securities Litigation Reform Act of 1995
Except for statements of historical fact, the statements in this press release are forward-looking. Such statements are subject to a number of risks and uncertainties that could cause actual results to differ materially from the statements made. These factors include, but are not limited to, general economic conditions, forecasts of sales in future periods, changes in sales levels to our largest customers, weather patterns, production problems caused by contamination, risks associated with the acceptance of new products, competition, foreign exchange fluctuations, government regulation, and other factors more fully detailed in the Company's recent Form 10-Q and annual Form 10-K filings with the Securities and Exchange Commission.