Cyanotech, manufacturers of algal nutritional products, announced 26% growth in second quarter fiscal 2009 revenues. The company’s gross profit margin went up 13% from 29% in second quarter last year, to 42% over the same period this year.
President and CEO Andrew H. Jacobson commented on the results, “We saw the efforts of our new cultivation strategy begin to show benefits as we experienced increased productivity of 53.5% for spirulina and 34% for astaxanthin over the second quarter of fiscal 2008. These gains, combined with our cost containment efforts and strong top line, delivered a 79.4% increase in gross profit and a 13 point gross margin improvement over the prior year period.”
Revenues for the first six months of fiscal 2009 grew 35% to nearly $7 million and company executives have indicated that the second half looks promising as well. However, Jacobson cautioned that seasonal reduced productivity is expected over the winter as the Hawaiian sunlight is reduced.
According to the NBJ/Canaccord Adams November stock reporter, Cyanotech has been one of the few NBJ-tracked stocks to post gains in 2008. Share price is up 14% since the start of the year, and 3% for the 54-day period starting 8/6/08 and ending 10/31/08. Shares were trading at $1.55 at press time.
If you are an NBJ Subscriber and would like to read more of NBJ’s coverage of Cyanotech, click the following links:
Cyanotech Reports Strong Fiscal 2008
Marketers Refine Antioxidant Messages as New Science Emerges
February 2008 NBJ Stock Reporter Stock Data, Financial News, Company Information