Categorized | Business

Cyanotech reports latest financial results

MEDIA RELEASE

Cyanotech Corporation, a world leader in microalgae-based, high-value nutrition and health products, today announced financial results for the third quarter and first nine months of fiscal year 2013, ended Dec. 31, 2012.

For the third quarter of fiscal 2013 compared to the third quarter of fiscal 2012, revenues were $7,242,000 compared to $6,706,000, an increase of 8 percent. Gross profit was $2,865,000, with gross profit margin of 40 percent, compared to gross profit of $2,827,000 and gross profit margin of 42 percent.

Net income was $607,000 or $0.11 per diluted share, compared to net income of $1,113,000 or $0.20 per diluted share.

Commenting on the third quarter fiscal 2013 results (changes shown vs. third quarter of fiscal 2012), Brent Bailey, President and CEO, noted:

Demand in the third quarter was strong with net sales at an all-time record $7,242,000 (+8 percent). The growth is in the strategic areas we have identified as priorities and is driven by our increased sales and marketing spending:

Nutrex Mainland: +49 percent
Nutrex Hawaii: +30 percent
Nutrex Direct (online): +96 percent
International Bulk: +73 percent

Packaged products generated 43 percent (+10 pts.) of our revenue as our market shares in the Natural Products Channel continue to grow:

Astaxanthin: 45 percent (+16 pts.)
Spirulina: 44 percent (+4 pts.)

Three factors negatively impacted profitability in the third quarter:

Planned sales and marketing expenses, which increased 59 percent due to increased advertising, promotional events and web support to drive our packaged products business; our new Scientific Advisory Board and public relations services; and incremental headcount.

Continued higher cost of Spirulina production, due to lower than expected harvests, which are expected to continue in the fourth quarter.

First Nine Months 2013

For the first nine months of fiscal 2013 compared to the first nine months of fiscal 2012, revenues were $20,684,000 compared to $18,645,000, an increase of 11 percent. Gross profit was $8,251,000, with gross profit margin of 40 percent, compared to gross profit of $7,721,000 and gross profit margin of 41 percent. Net income was $1,576,000 or $0.28 per diluted share, compared to net income of $2,473,000 or $0.45 per diluted share.

Trailing 12 Months

For the trailing 12 months ended Dec. 31, 2012, compared to the trailing 12 months ended Dec. 31, 2011, revenues were $26,670,000 compared to revenues of $23,863,000, an increase of 12 percent.

Gross profit was $10,304,000, with gross profit margin of 39 percent, compared to gross profit of $9,519,000 and gross profit margin of 40 percent. Net income was $2,734,000 or $0.50 per diluted share, compared to $3,268,000, or $0.61 per diluted share.

Cyanotech Corporation, a world leader in microalgae technology, produces BioAstin Natural Astaxanthin and Hawaiian Spirulina Pacifica — all natural, functional nutrients that leverage our experience and reputation for quality, building nutritional brands that 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 using patented and proprietary technology. Cyanotech distributes to nutritional supplement, nutraceutical and cosmeceutical manufacturers and marketers in more than 54 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 AssociationTM.

— Find out more:
www.cyanotech.com

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