KAILUA KONA, Hawaii, Aug 11, 2005 (BUSINESS WIRE) -- Cyanotech Corporation (CYAN), a world leader in producing high-value natural products from microalgae, today announced results for the first fiscal quarter, ended June 30, 2005.
For the three months ended June 30, 2005 the Company reported net sales of $3,029,000, an increase of $322,000 or 12%, compared to sales of $2,707,000 reported for the comparable period of the prior fiscal year. Gross profit for the first quarter of fiscal 2006 was $1,025,000, an increase of 16% from gross profit of $887,000 for the same period last year. The Company reported gross profit margin of 34% for the current year quarter, a slight increase from gross profit of 33% reported for the first quarter of the prior fiscal year.
Operating expenses for the first quarter of fiscal 2006 were $817,000, an increase of 13% from the $726,000 reported for the comparable period of the prior fiscal year, General and Administrative and Sales and Marketing expense both increased; these increases were partially offset by decreases in research and development expense. Income from operations amounted to $208,000, a 29% increase from income from operations of $161,000 reported for the comparable quarter of the prior year. Other expense, net for the first quarter of fiscal 2006 was $50,000, an increase of 52% from other expense, net of $33,000 reported for the comparable quarter of the prior fiscal year. The Company reported net income of $153,000, or $0.01 per diluted share, an increase from net income of $113,000, or $0.01 per diluted share, for the comparable quarter of the prior fiscal year.
"The first quarter of fiscal 2006 was characterized by stronger sales of all of our products compared to the first quarter of fiscal 2005 and the prior consecutive quarter," said Gerald R. Cysewski, Ph.D., Chairman, President and Chief Executive Officer. "We have been cultivating Spirulina Pacifica(R) for 20 years at our Kona facility and our focus on quality, product safety and high value has attracted customers who desire this high quality product. In turn, this translates into high demand for our Spirulina products. Our BioAstin(R) anti-inflammatory antioxidant has the same reputation for quality, safety and high value and as it is a relatively new product, we are excited about its potential for increased sales. Contributing to our results for this quarter were increased sales of NatuRose(R) natural astaxanthin to the Japan aquaculture market. We remain cautious about the recovery rate of that market following the disruption caused by a severe typhoon season a year ago. With the completion of our production facility upgrade last fiscal year we are now able to better adapt our cultivation and processing according to market trends. Our results may vary from quarter to quarter, but our goal is to achieve annual revenue growth and increase profitability."
Cyanotech Corporation, a world leader in microalgal technology, produces BioAstin(R) natural astaxanthin and Spirulina Pacifica(R) -- all-natural, functional nutrients that enhance human health and nutrition, providing significant antioxidant, anti-inflammatory and immune response benefits. The Company's other compounds, such as NatuRose(R) natural astaxanthin, promote animal nutrition and health, primarily in aquaculture. Cyanotech extracts these compounds from microalgae grown at its 90-acre facility in Hawaii using proprietary processes, and distributes them to nutraceutical, nutritional supplement, cosmeceutical and aquaculture feed makers and marketers worldwide. Corporate data and product information are available at www.cyanotech.com.
"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.