Cyanotech Corporation, a world leader in producing high-value nutrition and health products from microalgae, today announced financial results for the second quarter and first six months of fiscal 2009, ended September 30, 2008.
Revenues for the second quarter of fiscal 2009 increased 26% to $3,274,000, compared to revenues of $2,604,000 for the second quarter of fiscal 2008. Gross profit for the second quarter was $1,378,000, with gross profit margin of 42%, compared to a gross profit of $768,000 and gross profit margin of 29% reported for the same quarter of the prior year. Net income for the second quarter was $163,000, or $0.03 per diluted share, compared to net loss of $344,000, or ($0.07) per diluted share for the second quarter of fiscal 2008.
The improvement in net income is the result of increased sales, increased gross profit and a reduction in operating expenses.
Cash and cash equivalents were $989,000 as of September 30, 2008 compared to the March 31, 2008 balance of $1,090,000. Working capital was $3,381,000 at September 30, 2008 compared to $3,092,000 at March 31, 2008.
"In the second quarter, our momentum continued to accelerate," said Andrew H. Jacobson, President and Chief Executive Officer. "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 increased 35% to $6,975,000, compared to revenues of $5,187,000 for the first half of fiscal 2008. Gross profit for the first six months was $2,682,000, with gross profit margin of 38%, compared to a gross profit of $1,514,000 and gross profit margin of 29% reported for the first half of fiscal 2008. Net income for the first six months was $434,000, or $0.08 per diluted share, compared to net loss of $726,000, or ($0.14) per diluted share for the first half of fiscal 2008.
"Our results for the second quarter and first half of fiscal 2009 are promising," Mr. Jacobson continued. "We have delivered $434,000 in profit, resulting in a $1.16 million improvement over the first half of fiscal 2008."
"As we move deeper into the cooler temperatures and reduced sunlight of winter, we expect seasonal reduced productivity," Mr. Jacobson concluded. "But we will stay focused on improving cultivation and productivity, containing costs and increasing sales and nutritional quality."
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, FDA reviewed and accepted as Generally Recognized as Safe (GRAS) for use as a food ingredient, augments energy and immune response. BioAstin's benefits derive from its superior antioxidant activity and from its ability to support and maintain natural inflammatory response, enhancing skin, muscle and joint health. Cyanotech produces these products from microalgae grown at its 90-acre facility in Hawaii using patented and proprietary technology and distributes them to nutritional supplement, nutraceutical and cosmeceutical makers and marketers in more than 40 countries worldwide. Cyanotech was the first microalgae company in the world to obtain ISO 9001:2000. 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.