Cyanotech Corporation (Nasdaq Capital Market: CYAN), a world leader in microalgae-based, high-value nutrition and health products, announced financial results for the fourth quarter and fiscal year 2012, ended March 31, 2012.
Fiscal year 2012
For fiscal year 2012 compared to fiscal year 2011, revenues were $24,631,000 compared to $16,827,000. Gross profit was $9,774,000, with gross profit margin of 39.7 percent, compared to gross profit of $6,341,000 and gross profit margin of 37.7 percent. Net income was $3,632,000 or $0.66 per diluted share, compared to net income of $1,730,000 or $0.32 per diluted share.
Highlighting the fiscal year 2012 results, Brent Bailey, President and CEO, noted:
- Net sales increased $7.8 million or 46.4 percent over the prior year to a record $24.6 million, driven primarily by an increase in demand for astaxanthin products.
- Gross margin increased to 39.7 percent from 37.7 percent, aided by the growth in higher margin astaxanthin sales.
- Operating income increased $1.7 million or 136 percent to $2.9 million, driven by the net sales growth.
- Net income increased $1.9 million or 110 percent to $3.6 million, driven by the volume increase and a partial reversal of the valuation allowance on our deferred tax asset.
- Earnings per diluted share increased $0.34 to $0.66.
- Cash from operating activities increased $3.3 million to $5.1 million, resulting from the increased volume and non-cash items such as stock option compensation and increases in accounts payable and accrued expenses.
- Cash and cash equivalents at March 31, 2012 increased $3.0 million to $5.1 million. As a result, working capital increased $1.8 million or 29 percent to $8.1 million at March 31, 2012.
In addition, we continue to gain distribution on the mainland in the natural products channel where our Nutrex-Hawaii brand grew 72 percent in fiscal 2012.”
For the year, spirulina sales accounted for 35 percent of total revenues and natural astaxanthin sales for 65 percent. International sales were 33 percent of total sales.
Mr. Bailey commented, “We are pleased with our business results and made significant progress in improving our processes, systems, facilities and organization in fiscal 2012. We are focused on continuing to strengthen our infrastructure to support the substantial growth we expect to generate for the foreseeable future.”
Vice President and CFO Jolé Deal commented that “as part of strengthening our foundation, we’ve made significant improvements in the effectiveness of our internal controls and procedures. As a result, the material weakness that had been identified in previous years no longer exists.”
Fourth quarter 2012
For the fourth quarter of fiscal 2012 compared to the fourth quarter of fiscal 2011, revenues were $5,986,000 compared to $5,218,000. Gross profit was $2,053,000, with gross profit margin of 34.3 percent, compared to gross profit of $1,798,000 and gross profit margin of 34.5 percent. Net income was $1,158,000 or $0.20 per diluted share, compared to net income of $795,000 or $0.14 per diluted share. Net income for the fourth quarter included a reversal of the valuation allowance on our deferred tax asset of $892,000 in the current year and $552,000 last year.