KAILUA KONA, Hawaii, Nov 07, 2007 (BUSINESS WIRE) -- Cyanotech Corporation (CYAN) , 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 2008, ended September 30, 2007.
Sales for the second quarter of fiscal 2008 were $2,604,000, compared to sales of $2,475,000 for the second quarter of fiscal 2007. Gross profit for the second quarter was $768,000, with gross profit margin of 29%, compared to a gross profit of $404,000 and gross profit margin of 16% reported for the same quarter of the prior year. Net loss for the second quarter was $344,000, or ($0.07) per diluted share, compared to net loss of $572,000, or ($0.11) per diluted share for the second quarter of fiscal 2007.
Cash and cash equivalents were $758,000 as of September 30, 2007 compared to the March 31, 2007 balance of $1,444,000. Working capital was $2,672,000 at September 30, 2007 compared to $3,361,000 at March 31, 2007.
"Revenues increased moderately in the second quarter compared to the same period last year as our product mix begins to reflect our new marketing orientation to human nutrition products," said Gerald R. Cysewski, Ph.D., Cyanotech's Chairman, President and CEO. "Sales of spirulina were down slightly while sales of natural astaxanthin were up 18%. Sales of our branded BioAstin natural astaxanthin products increased 57%.
"During the second quarter, we launched two new condition-specific formulations, JointAstin(TM) and CardioAstin(TM), under our new MD Formulas product line. These will add breadth to our Nutrex Hawaii consumer products division and increase focus on our human nutrition initiative."
Sales for the first six months of fiscal 2008 were $5,187,000, compared to sales of $4,919,000 for the same period of fiscal 2007. Gross profit for the first six months was $1,514,000, with gross profit margin of 29%, compared to a gross profit of $875,000 and gross profit margin of 18% reported for the same period of the prior year. Net loss for the first six months was $726,000, or ($0.14) per diluted share, compared to net loss of $919,000, or ($0.18) 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.