Cyanotech first-quarter fiscal 2011 revenues decrease to $3.86 million

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 2011, ended June 30, 2010.

“Our production continues to show excellent yields, which should enable us to meet increased demand for our bulk and packaged products as we go forward.”

First Quarter 2011

For the first quarter of fiscal 2011 compared to the first quarter of fiscal 2010, revenues were $3,856,000 compared to revenues of $4,021,000. Gross profit was $1,659,000, with gross profit margin of 43%, compared to gross profit of $1,733,000 and gross profit margin of 43%. Net income was $399,000, or $0.07 per diluted share, compared to $413,000, or $0.08 per diluted share.

Trailing 12 Months

For the trailing 12 months ended June 30, 2010, compared to the trailing 12 months ended June 30, 2009, revenues were $15,577,000 compared to revenues of $14,270,000. Gross profit was $6,559,000, with gross profit margin of 42%, compared to gross profit of $5,941,000 and gross profit margin of 42%. Net income was $1,377,000, or $0.27 per diluted share, compared to $1,284,000, or $0.25 per diluted share.

"Cyanotech's performance was steady in the first quarter of fiscal 2011 for both our bulk raw material Spirulina and Astaxanthin products and our branded packaged products," said David I. Rosenthal, Interim President and CEO. "As a world leader in the production and marketing of high-value natural products from microalgae, we are putting increased emphasis on our Nutrex Hawaii consumer products to introduce them to a broader consumer market than in prior years, principally domestic. Our marketing team is making good progress with new retail outlets, both major chain stores and their online stores."

Rosenthal noted, "Our production continues to show excellent yields, which should enable us to meet increased demand for our bulk and packaged products as we go forward."

Cash and cash equivalents were $868,000 at June 30, 2010 compared to the March 31, 2010 balance of $817,000. Working capital increased to $5,243,000 at June 30, 2010 compared to $4,942,000 at March 31, 2010.

For the first quarter of fiscal 2011 compared to the first quarter of 2010, Spirulina sales accounted for 51% of total revenues and natural Astaxanthin sales for 49%. International sales were 46% of total sales compared to 47%.