Cyanotech Reports Financial Results For The Third Quarter And First Nine Months Of Fiscal 2012

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 2012, ended December 31, 2011.

Third Quarter 2012

For the third quarter of fiscal 2012 compared to the third quarter of fiscal 2011, revenues were $6,706,000 compared to $3,919,000. Gross profit was $2,827,000, with gross profit margin of 42%, compared to gross profit of $1,232,000 and gross profit margin of 31%. Net income was $1,113,000 or $0.20 per diluted share, compared to net income of $10,000 or $0.00 per diluted share.

Nine Months 2012

For the first nine months of fiscal 2012 compared to the first nine months of fiscal 2011, revenues were $18,645,000 compared to $11,609,000. Gross profit was $7,721,000, with gross profit margin of 41%, compared to gross profit of $4,543,000 and gross profit margin of 39%. Net income was $2,473,000 or $0.45 per diluted share, compared to net income of $935,000 or $0.17 per diluted share.

Trailing 12 Months

For the trailing 12 months ended December 31, 2011, compared to the trailing 12 months ended December 31, 2010, revenues were $23,863,000 compared to revenues of $15,423,000. Gross profit was $9,519,000, with gross profit margin of 39.9%, compared to gross profit of $5,931,000 and gross profit margin of 38.5%. Net income was $3,268,000 or $0.60 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 in the fourth quarter of fiscal 2011, compared to $709,000, or $0.13 per diluted share. Income before income tax was $2,771,000 compared to $715,000.

Commenting on the third quarter results, Brent Bailey, President and CEO, said “We continued to make progress on key measures in the third quarter compared to the third quarter of fiscal 2011:
  • Net sales reached a record level for the fourth consecutive quarter at $6,706,000 (+$2,787,000 and +71%)
  • Gross margin increased to 42.2% (+10.8 pts.)
  • Net Income grew to $1,113,000 (+$1,103,000)
  • Cash increased to $4,190,000 (+$3,461,000 and +475%)
  • Inventory declined to $3,556,000 (-$800,000 and -18%)

“In addition, our Nutrex-branded sales grew +74% largely driven by the mainland US natural products distribution channel.”

For the third quarter of fiscal 2012, Spirulina sales accounted for 31% of total revenues and natural Astaxanthin sales for 69%. International sales were 29% of total sales.

Mr. Bailey noted, “Abundant inventory coming out of last winter, plus eight consecutive monthly astaxanthin production records, allowed us to fully capitalize on the strong growth in spirulina and the exceptional growth in astaxanthin resulting in four consecutive record net sales quarters. While demand continues to grow, our production generally declines during the winter months largely due to less sunlight. Going forward, our astaxanthin capacity will increase by 33% in the spring as we bring new ponds on line in April.”

About CyanotechCyanotech 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 which 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, Hawaii 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 Association TM . Visit www.cyanotech.com for more information.

“Safe Harbor” Statement under the U.S. Private Securities Litigation Reform Act of 1995 Besides statements of present fact and historical fact, this press release may contain forward-looking statements. Forward-looking statements relate to the future and are subject to inherent uncertainties, risks and changes in circumstances that are difficult to predict. Our actual results may differ materially from those contemplated by forward-looking statements. We caution against relying on forward-looking statements. Important factors that could change actual, future results include: changes in sales levels to our largest customers, weather patterns in Hawaii, production problems, risks associated with new products, foreign exchange fluctuations, and availability of financing, as well as national and global political, economic, business, competitive, market and regulatory conditions. Other factors are more fully detailed in the Company’s recent Form 10-Q and annual Form 10-K filings with the Securities and Exchange Commission.

( Financial Tables Follow: The following tables do not contain footnotes or other information contained in the Company’s Form 10-Q for the period ended December 31, 2011. As such the following Financial Tables are provided only as a guide and other factors are more fully detailed in the Company’s Form 10-Q and annual Form 10-K filings with the Securities and Exchange Commission.)
 

CYANOTECH CORPORATION AND SUBSIDIARIES

CONDENSED CONSOLIDATED BALANCE SHEETS
 

(Dollars in thousands except par value and number of shares)

(Unaudited)
 
      December 31,2011       March 31,2011
ASSETS
Current assets:
Cash and cash equivalents $ 4,190 $ 2,062

Accounts receivable, net of allowance for doubtful accounts of $52 atDecember 31, 2011 and $58 at March 31, 2011
2,855 2,641
Inventories, net 3,556 3,627
Deferred tax assets 17 17
Prepaid expenses and other assets 374 134
Total current assets 10,992 8,481
 
Equipment and leasehold improvements, net 5,416 4,557
Deferred tax assets 535 535
Other assets 291 287
Total assets $ 17,234 $ 13,860
 
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Current maturities of long-term debt $ 234 $ 204
Customer deposits 39 115
Accounts payable 1,194 1,054
Accrued expenses 1,343 823
Total current liabilities 2,810 2,196
 
Long-term debt, excluding current maturities 457 553
Total liabilities 3,267 2,749
 
Commitments and contingencies
 
Stockholders’ equity:

Common stock of $0.02 par value, shares authorized 7,500,000; 5,434,598shares issued and outstanding at December 31, 2011 and 5,391,968shares at March 31, 2011
109 108
Additional paid-in capital 28,185 27,803
Accumulated deficit (14,327 ) (16,800 )
Total stockholders’ equity 13,967 11,111
 
Total liabilities and stockholders’ equity $ 17,234 $ 13,860
 
 

CYANOTECH CORPORATION AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
 

(Dollars in thousands, except per share amounts)

(Unaudited)
 
      Three Months EndedDecember 31,       Nine Months EndedDecember 31,
2011       2010 2011       2010
 
NET SALES $ 6,706 $ 3,919 $ 18,645 $ 11,609
COST OF SALES 3,879 2,687 10,924 7,066
Gross profit 2,827 1,232 7,721 4,543
 
OPERATING EXPENSES:
General and administrative 955 630 3,019 2,036
Sales and marketing 631 502 1,808 1,278
Research and development 77 83 237 229
Loss on disposal of equipment and leasehold improvements 1 65
Total operating expenses 1,664 1,215 5,129 3,543
 
Income from operations 1,163 17 2,592 1,000
 
Interest expense, net (14 ) (16 ) (38 ) (54 )
 
Income before provision for income taxes 1,149 1 2,554 946
 
PROVISION FOR (BENEFIT FROM) INCOME TAXES 36 (9 ) 81 11
 
NET INCOME $ 1,113 $ 10 $ 2,473 $ 935
 
NET INCOME PER SHARE:
Basic $ 0.21 $ 0.00 $ 0.46 $ 0.18
Diluted $ 0.20 $ 0.00 $ 0.45 $ 0.17
 
SHARES USED IN CALCULATION OF NET INCOME PER SHARE:
Basic 5,424 5,392 5,406 5,340
Diluted 5,571 5,423 5,490 5,366

Copyright Business Wire 2010

More from Press Releases

NFL Pushes for Regulation Following Supreme Court's Sports Gambling Ruling

NFL Pushes for Regulation Following Supreme Court's Sports Gambling Ruling

21st Century Fox Scoops Up Local News Stations

21st Century Fox Scoops Up Local News Stations

Walmart CEO: 'We Are Transforming Globally' With Flipkart

Walmart CEO: 'We Are Transforming Globally' With Flipkart

Three-Part FREE Webinar Series

Three-Part FREE Webinar Series

March 24 Full-Day Course Offering: Professional Approach to Trading SPX

March 24 Full-Day Course Offering: Professional Approach to Trading SPX