Cyanotech Reports Financial Results For The First Quarter Of Fiscal 2013

Cyanotech Corporation (Nasdaq Capital Market: CYAN), a world leader in microalgae-based, high-value nutrition and health products, today announced financial results for the first quarter of fiscal year 2013, ended June 30, 2012.

First Quarter 2013

For the first quarter of fiscal 2013 compared to the first quarter of fiscal 2012, revenues were $6,506,000 compared to $5,950,000, an increase of 9%. Gross profit was $2,574,000, with gross profit margin of 39.6%, compared to gross profit of $2,104,000 and gross profit margin of 35.4%. Net income was $493,000 or $0.08 per diluted share, compared to net income of $486,000 or $0.09 per diluted share.

Commenting on the first quarter fiscal 2013 results, Brent Bailey, President and CEO, noted: “Although first quarter net sales growth companywide was a modest 9%, our packaged products increased 44% reflecting our new strategic marketing focus, driven by strong growth of 36% on the mainland, 55% in Hawaii, 49% in direct-to-consumer and 209% internationally. BioAstin and Hawaiian Spirulina Pacifica continue to be the #1 brands of astaxanthin and spirulina, respectively, in the United States natural products channel. In spite of significantly increased demand, bulk net sales declined 6% due to lower production in the fourth quarter of fiscal 2012. Bulk spirulina sales were down 9% while bulk astaxanthin dropped 5%.”

“The increase in first quarter operating expenses reflects the investment we are making in brand development, marketing and people with successful business-building track records in consumer packaged goods. We are confident that this investment strengthens our foundation for continued revenue growth, improved margins and resulting profit,” continued Bailey.

Trailing 12 Months

For the trailing 12 months ended June 30, 2012, compared to the trailing 12 months ended June 30, 2011, revenues were $25,187,000 compared to revenues of $18,921,000, an increase of 33%. Gross profit was $10,244,000, with gross profit margin of 40.7%, compared to gross profit of $6,786,000 and gross profit margin of 35.9%. Net income was $3,639,000 or $0.65 per diluted share, compared to $1,817,000, or $0.34 per diluted share.

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 our 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 June 30, 2012. 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 SUBSIDIARY

CONDENSED CONSOLIDATED BALANCE SHEETS
 

(Dollars in thousands except par value and number of shares)
 
      June 30,2012     March 31,2012
ASSETS
Current assets:
Cash and cash equivalents $ 4,652 $ 5,061
Accounts receivable, net of allowance for doubtful accounts of $6 at June 30, 2012 and $16 at March 31, 2012 2,737 2,373
Inventories, net 3,089 3,548
Deferred tax assets 137 137
Prepaid expenses and other current assets 262 300
Total current assets 10,877 11,419
 
Equipment and leasehold improvements, net 6,186 5,834
Deferred tax assets 1,307 1,307
Other assets 514 478
Total assets $ 18,884 $ 19,038
 
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Current maturities of long-term debt $ 222 $ 234
Customer deposits 36 49
Accounts payable 1,489 1,726
Accrued expenses 884 1,352
Total current liabilities 2,631 3,361
 
Long-term debt, excluding current maturities 354 400
Deferred rent 16 12
Total liabilities 3,001 3,773
 
Commitments and contingencies
 
Stockholders’ equity:
Common stock of $0.02 par value, shares authorized 7,500,000; 5,440,968 shares issued and outstanding at June 30, 2012 and March 31, 2012 109 109
Additional paid-in capital 28,449 28,324
Accumulated deficit (12,675 ) (13,168 )
Total stockholders’ equity 15,883 15,265
 
Total liabilities and stockholders’ equity $ 18,884 $ 19,038
 

CYANOTECH CORPORATION AND SUBSIDIARY

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
 

(Dollars in thousands, except per share amounts)
 
      Three Months Ended June 30,
2012       2011
 
NET SALES $ 6,506 $ 5,950
COST OF SALES 3,932 3,846
Gross Profit 2,574 2,104
 
OPERATING EXPENSES:
General and administrative 1,148 948
Sales and marketing 838 567
Research and development 51 71
Loss on disposal of equipment and leasehold improvements 22 2
Total operating expenses 2,059 1,588
 
Income from operations 515 516
 
Interest expense, net 12 14
 
Income before provision for income taxes 503 502
 
PROVISION FOR INCOME TAXES 10 16
 
NET INCOME $ 493 $ 486
 
NET INCOME PER SHARE:
Basic $ 0.09 $ 0.09
Diluted $ 0.08 $ 0.09
 
SHARES USED IN CALCULATION OF NET INCOME PER SHARE:
Basic 5,441 5,395
Diluted 5,873 5,460

Copyright Business Wire 2010

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