Categorized | Business

Cyanotech: Net sales up 46 percent


Cyanotech Corporation, a world leader in microalgae-based, high-value nutrition and health products, has announced financial results for the fourth quarter and fiscal year 2012, ended March 31, 2012.

For fiscal year 2012 compared to fiscal year 2011, revenues were $24,631,000 compared to $16,827,000.

Gross profit was $9,774,000, with gross profit margin of 39.7%, compared to gross profit of $6,341,000 and gross profit margin of 37.7%.

Net income was $3,632,000 or $0.66 per diluted share, compared to net income of $1,730,000 or $0.32 per diluted share.

Brent Bailey, president and CEO, pointed out the highlights:

* Net sales increased $7.8 million or 46.4% over the prior year to a record $24.6 million, driven primarily by an increase in demand for astaxanthin products.

* Gross margin increased to 39.7% from 37.7%, aided by the growth in higher margin astaxanthin sales.

* Operating income increased $1.7 million or 136% to $2.9 million, driven by the net sales growth.

* Net income increased $1.9 million or 110% to $3.6 million, driven by the volume increase and a partial reversal of the valuation allowance on our deferred tax asset.

* Earnings per diluted share increased $0.34 to $0.66.
Cash from operating activities increased $3.3 million to $5.1 million, resulting from the increased volume and non-cash items such as stock option compensation and increases in accounts payable and accrued expenses.

* Cash and cash equivalents at March 31, 2012 increased $3.0 million to $5.1 million. As a result, working capital increased $1.8 million or 29% to $8.1 million at March 31, 2012.

* Nutrex-Hawaii brand grew 72% in fiscal 2012 on the mainland.

For the year, spirulina sales accounted for 35% of total revenues and natural astaxanthin sales for 65%. International sales were 33% of total sales.

Bailey said, “We are pleased with our business results and made significant progress in improving our processes, systems, facilities and organization in fiscal 2012. We are focused on continuing to strengthen our infrastructure to support the substantial growth we expect to generate for the foreseeable future.”

Vice President and CFO Jole Deal said, “As part of strengthening our foundation, we’ve made significant improvements in the effectiveness of our internal controls and procedures. As a result, the material weakness that had been identified in previous years no longer exists.”

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