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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 year 2011, ended March 31, 2011.
Fourth Quarter 2011
For the fourth quarter of fiscal 2011 revenues were $5,218,000 compared to $3,814,000 for the fourth quarter of fiscal 2010. Gross profit was $1,798,000, with gross profit margin of 34%, compared to gross profit of $1,387,000 and gross profit margin of 36%. Net income was $795,000 or $.14 per diluted share, including a non-cash tax benefit of $552,000 due to a reduction in the deferred tax valuation allowance and recording of a net deferred tax asset, compared to net loss of $226,000 or $(0.04) per diluted share last fiscal year. Income before the tax benefit was $216,000 for the fourth quarter of 2011 compared to a loss of $230,000 in 2010.
Fiscal Year 2011
For the fiscal year ended March 31, 2011, revenues were $16,827,000 compared to revenues of $15,742,000 for the year ended March 31, 2010. Gross profit was $6,341,000, with gross profit margin of 38%, compared to gross profit of $6,633,000 and gross profit margin of 42% in fiscal 2010. Net income was $1,730,000 or $.32 per diluted share, including a non-cash tax benefit of $552,000 due to a reduction in the deferred tax valuation allowance and recording of a net deferred tax asset, compared to $1,391,000, or $0.26 per diluted share fiscal year 2010. Income before the income tax benefit for fiscal 2011 was $1,163,000 compared to $1,415,000 in 2010.
Brent Bailey, President and CEO, said, “Cyanotech's business is healthy and vital. Our fourth quarter results were robust, but also were influenced by several factors, which are generally non-recurring:
Approximately $800,000 of the increase in net sales was due to the discounted sale of short-dated and non-conforming product as well as opportunistic revenue that we do not expect to repeat
These sales negatively impacted gross profit and net income by $366,000
Net income increased by $552,000 due to a non-cash tax benefit
Eliminating these non-recurring items still shows a record quarter with 16% net sales growth generated by expanded market awareness of our products, such as from favorable publicity for both Astaxanthin and Spirulina from multiple segments on the popular Dr. Oz Show. Our fiscal 2011 results were similarly influenced by these factors.”