Martek Biosciences ( MATK) first-quarter profit fell 21%.

The company earned $5.6 million, or 17 cents a share, compared with $7.1 million, or 23 cents a share, a year ago. Adjusted with stock based expenses, earnings were 19 cents a share in the most recent quarter. Analysts surveyed by Thomson First Call were expecting earnings of 13 cents a share in the most recent quarter.

Revenue for the first quarter fell 5.4% to $62.9 million. Analysts were expecting revenue of $61.3 million in the quarter.

Revenue from product sales decreased 4.1% to $60.5 million and from contract manufacturing to $2.4 million from $3.39 million, a year ago.

"Martek's first quarter revenues and earnings exceeded earlier expectations despite the adoption of the new stock option accounting rules," the company said. "Recent improvements in our core business and developments in the food area position the Company well for the rest of 06 and beyond."

Early Wednesday, Martek rose $3.10 to $33.63.

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