Cyanotech announces fiscal 2010 third quarter results

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 2010, ended December 31, 2009.

“The third quarter featured several company milestones including the launch of Hawaiian Spirulina Pacifica® Multivitamins, and the discovery of Vitamin K2 in Hawaiian Spirulina Pacifica®”

Third Quarter Fiscal 2010

Revenues for the third quarter of fiscal 2010 increased 12% to $3,982,000, compared to revenues of $3,553,000 for the third quarter of fiscal 2009. Gross profit was $1,750,000, with gross profit margin of 44%, in the current quarter compared to a gross profit of $1,566,000 and gross profit margin of 44% reported for the same quarter in fiscal 2009. Net income increased 18% to $605,000, or $0.11 per diluted share, compared to $514,000, or $0.10 per diluted share for the third quarter of fiscal 2009.

Cash and cash equivalents were $791,000 at December 31, 2009 compared to the March 31, 2009 balance of $977,000. Working capital increased to $5,171,000 at December 31, 2009 compared to $3,892,000 at March 31, 2009.

“The third quarter featured several company milestones including the launch of Hawaiian Spirulina Pacifica® Multivitamins, and the discovery of Vitamin K2 in Hawaiian Spirulina Pacifica®,” said Andrew H. Jacobson, President and CEO. “In addition, our re-branding campaign continues to resonate with consumers and increase awareness of Cyanotech’s unique value proposition: More Nutrition. Better Health. Purely Hawaiian™.”

He continued, “Despite economic challenges, our focus on business fundamentals remains robust. We delivered our most profitable quarter in over 10 years and we grew our core BioAstin® and Hawaiian Spirulina Pacifica® businesses both domestically and internationally.”

First Nine Months Fiscal 2010

Revenues for the first nine months of fiscal 2010 increased 13% to $11,928,000, compared to revenues of $10,528,000 for the first nine months of fiscal 2009. Gross profit was $5,245,000, with gross profit margin of 44%, compared to a gross profit of $4,248,000 and gross profit margin of 40% reported for the same period in 2009. Net income increased 71% to $1,617,000, or $0.30 per diluted share, compared to $948,000, or $0.18 per diluted share for the first nine months of fiscal 2009.

Jacobson added that the company remains committed and focused on its goal of being the global leader in health and wellness derived from microalgae. “With our strong commitment to serving our customers and best in class, nutritionally superior product portfolio, we believe we are well positioned to expand our industry leadership.”