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 year 2013, ended December 31, 2012.
Third Quarter 2013
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%. Gross profit was $2,865,000, with gross profit margin of 40%, compared to gross profit of $2,827,000 and gross profit margin of 42%. 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%). 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%
- Nutrex Hawaii: +30%
- Nutrex Direct (online): +96%
- International Bulk: +73%
“Packaged products generated 43% (+10 pts.) of our revenue as our market shares in the Natural Products Channel continue to grow:
- Astaxanthin: 45% (+16 pts.)
- Spirulina: 44% (+4 pts.)
“Three factors negatively impacted profitability in the third quarter:
First Nine Months 2013
- Planned sales and marketing expenses, which increased 59% 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.
- Increased legal fees.”
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%. Gross profit was $8,251,000, with gross profit margin of 40%, compared to gross profit of $7,721,000 and gross profit margin of 41%. 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.