KAILUA KONA, Hawaii, Feb 14, 2008 (BUSINESS WIRE) -- Cyanotech Corporation (Nasdaq Capital Market:CYAN), a world leader in producing high-value nutrition and health products from microalgae, today announced financial results for the third quarter and first nine months of fiscal 2008, ended December 31, 2007.
Revenues for the third quarter of fiscal 2008 increased 14% to $2,763,000, compared to revenues of $2,434,000 for the third quarter of fiscal 2007. Gross profit for the current third quarter was $353,000, with gross profit margin of 13%, compared to a gross profit of $78,000 and gross profit margin of 3% reported for the same quarter of the prior year. Net loss for the third quarter was $594,000, or ($0.11) per diluted share, compared to net loss of $1,187,000, or ($0.23) per diluted share for the third quarter of fiscal 2007.
Cash and cash equivalents were $790,000 as of December 31, 2007 compared to the March 31, 2007 balance of $1,444,000. Working capital was $2,050,000 at December 31, 2007 compared to $3,361,000 at March 31, 2007.
"Revenues in the current third quarter were constrained due to difficulties in spirulina production, exacerbated by unprecedented torrential rains and flooding in December, making it impossible to fully satisfy order demand," said Gerald R. Cysewski, Ph.D., Cyanotech's Chairman, President and Chief Executive Officer. "The issues were resolved by the end of the quarter and full spirulina production at typical historical levels was renewed early in January 2008. Sales of spirulina were down 26% for that quarter while sales of natural astaxanthin were up 72%.
"Our renewed marketing emphasis on retail products and condition-specific formulations announced earlier in the fiscal year has been moderated while we increase cash resources, which should be assisted going forward by the approximate 20% reduction in our workforce announced in December. We continue to focus on human nutrition products for both spirulina and natural astaxanthin."
Sales for the first nine months of fiscal 2008 were $7,950,000, compared to sales of $7,353,000 for the same period of fiscal 2007. Gross profit for the first nine months was $1,867,000, with gross profit margin of 23%, compared to a gross profit of $953,000 and gross profit margin of 13% reported for the same period of the prior year. Net loss for the first nine months was $1,320,000, or ($0.25) per diluted share, compared to net loss of $2,106,000, or ($0.40) per diluted share for the same period of fiscal 2007.
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 enhance human health and nutrition. 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. NatuRose(R) Natural Astaxanthin is a natural pigment source that also promotes animal health and nutrition, primarily in aquaculture. Phycobiliproteins are fluorescent pigments used in medical diagnostic testing and research. 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, cosmeceutical, and animal feed 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.
Financial Tables Follow: The following tables do not contain footnotes or other information contained in the Company's Form 10-Q for the Quarter and Nine Months ended December 31, 2007. As such the following Financial Tables are provided only as a guide and other factors are more fully detailed in the Company's recent Form 10-Q and annual form 10-K filings with the Securities and Exchange Commission.