Cyanotech Reports Financial Results For The Second Quarter And First Six Months 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 second quarter and first six months of fiscal year 2013, ended September 30, 2012.

Second Quarter 2013

For the second quarter of fiscal 2013 compared to the second quarter of fiscal 2012, revenues were $6,936,000 compared to $5,989,000, an increase of 16%. Gross profit was $2,812,000, with gross profit margin of 40.5%, compared to gross profit of $2,790,000 and gross profit margin of 46.6%. Net income was $476,000 or $0.08 per diluted share, compared to net income of $875,000 or $0.16 per diluted share.

Commenting on the second quarter fiscal 2013 results, Brent Bailey, President and CEO, noted: “We are pleased with the record net sales of $6,936,000 in the second quarter and growth of 16%, including a 46% increase in our US branded consumer business and 36% in our bulk astaxanthin business. Our market shares of both spirulina and astaxanthin in the natural products distribution channel were above 40% and growing in the most recent 12-week period. However, this solid net sales growth was offset by the following factors, resulting in a net income decline:
  • Planned addition of new employees to build our capabilities
  • Planned increase in marketing spending to drive our consumer products business
  • Lower spirulina production, resulting in abnormal costs of $481,000 for the quarter, due to difficulties in harvesting smaller cell sizes that have proliferated over time. Our spirulina quality and nutrient levels remain high. We've taken steps to improve our harvest efficiency and our harvest level has improved and stabilized at a higher level but has not yet reached targeted levels.

“The shift in mix from spirulina to astaxanthin and from bulk to retail sales has led to year-to-date performance slightly ahead of expectations in spite of the factors listed above.”

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