Cyanotech Corporation (Nasdaq Capital Market: CYAN), 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 2011, ended December 31, 2010.
Third Quarter 2011
For the third quarter of fiscal 2011 compared to the third quarter of fiscal 2010, revenues were $3,919,000 compared to revenues of $3,982,000. Gross profit was $1,232,000, with gross profit margin of 31%, compared to gross profit of $1,750,000 and gross profit margin of 44%. Net income was $10,000, or $0.00 per diluted share, compared to $605,000, or $0.11 per diluted share.
Trailing 12 Months
For the trailing 12 months ended December 31, 2010, compared to the trailing 12 months ended December 31, 2009, revenues were $15,423,000 compared to revenues of $15,350,000. Gross profit was $5,931,000, with gross profit margin of 38%, compared to gross profit of $6,509,000 and gross profit margin of 42%. Net income was $709,000, or $0.14 per diluted share, compared to $1,811,000, or $0.35 per diluted share.
“Trends of our new marketing initiatives continued to improve in the third quarter of fiscal 2011, although overall sales were down 2%,” said Brent Bailey, President and CEO. “Sales of Cyanotech’s branded, higher-margin packaged products, a core initiative, increased 25% for Spirulina and 40% for natural Astaxanthin, offset by lower private label sales for both products. Marketing and sales expense increased by 49% from the third quarter of fiscal 2010 to support new brokers and broker training as well as new marketing programs for packaged products.”
“Our third quarter fiscal 2011 production was well below the same period in fiscal 2010 due to several factors including rain events and the subsequent recovery time to normal production levels,” Bailey added. “These factors were the primary driver of our margin decline for the quarter and are not expected to continue.”