Cyanotech Corporation (Nasdaq Capital Market: CYAN), a world leader in microalgae-based, high-value nutrition and health products, today announced financial results for the fourth quarter and fiscal 2009, ended March 31, 2009.
Revenues for fiscal 2009 increased 23% to $13,950,000, compared to revenues of $11,364,000 for fiscal 2008. Gross profit was $5,512,000, with gross profit margin of 40%, compared to a gross profit of $3,071,000 and gross profit margin of 27% reported for fiscal 2008. Net income was $1,142,000, or $0.22 per diluted share, compared to a net loss of $1,139,000, or ($0.22) per diluted share for fiscal 2008.
Cash and cash equivalents were $977,000 at March 31, 2009 compared to the March 31, 2008 balance of $1,090,000. Working capital increased to $3,892,000 at March 31, 2009 compared to $3,092,000 at March 31, 2008.
"In fiscal 2009, we focused on stabilizing Cyanotech by driving sound business fundamentals throughout the organization, thereby creating a strong foundation for the future," said Andrew H. Jacobson, President and Chief Executive Officer.
Mr. Jacobson noted these highlights and results of the company's fiscal 2009 plan:
1) Quality -- Cyanotech established Hawaiian Spirulina Pacifica(R) as the global nutritional leader. Third party tests confirmed superior nutritional content across all leading brands. In addition, Cyanotech significantly improved the potency of its Astaxanthin biomass.
2) Cost Containment -- Consolidating vendors, reducing costs and implementing controls throughout the supply chain delivered a 13-point margin improvement.
3) Increased Productivity -- New cultivation strategies, combined with adherence to stringent production metrics, increased Spirulina productivity by 52% and Astaxanthin productivity by 18%.
4) Sales Growth -- Sales increased 23% through improved service levels, a strategic price increase across all classes of trade and marketing of the Hawaii difference.
5) Net Income -- Cyanotech delivered $1.142 million in net income, which represents a $2.281 million turnaround.
"We are excited about fiscal 2010 and will continue to focus on sound business fundamentals. In addition, we will introduce a number of innovative products that will feature our Hawaiian Spirulina Pacifica and BioAstin(R) Natural Astaxanthin," Mr. Jacobson concluded.
Fourth Quarter Fiscal 2009
Revenues for the fourth quarter of fiscal 2009 were $3,422,000, compared to revenues of $3,414,000 for the fourth quarter of fiscal 2008. Gross profit for the fourth quarter was $1,264,000, with gross profit margin of 37%, compared to a gross profit of $1,204,000 and gross profit margin of 35% reported for the fourth quarter of fiscal 2008. Net income for the fourth quarter was $194,000, or $0.04 per diluted share, compared to net income of $181,000, or $0.03 per diluted share for the fourth quarter of fiscal 2008. Lower temperatures and reduced sunlight during the winter months contributed to seasonally reduced productivity in the fourth quarter.
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.