Cyanotech third quarter revenues increase to $6,706,000

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."

Source: Cyanotech