Hawaii-based microalgae producer, Cyanotch, today announced improved financial results for the fourth quarter and fiscal year 2006.
Sales for the fourth quarter of fiscal 2006 were $3,252,000, up 27% from sales of $2,560,000 for the fourth quarter of fiscal 2005. Gross profit for the fourth quarter was $1,072,000, with gross profit margin of 33%, compared to a gross profit of $714,000 and gross profit margin of 28% reported for the same quarter of the prior year. Net income for the fourth quarter was $194,000, or $0.01 per diluted share, compared to a net loss of $74,000, or ($0.00) per diluted share for the fourth quarter of fiscal 2005.
Cash and cash equivalents and short-term investments were $2,535,000 as of March 31, 2006 compared to the March 31, 2005 balance of $3,005,000. Working capital was $5,525,000 at March 31, 2006 compared to $5,102,000 at March 31, 2005.
"Higher revenue for the fourth quarter reflected increased order levels for spirulina products and, to a lesser extent, for NatuRose and BioAstin," said Gerald R. Cysewski, Ph.D., Cyanotech's Chairman, President and CEO.
"Sales of Cyanotech's combined product lines increased compared to the fourth quarter of fiscal 2005. As we noted last quarter, Cyanotech holds a leading share of the high-quality segment of the spirulina market, but purchasing patterns among our customers are variable. Fourth-quarter spirulina sales indicate strength in this core market.
"NatuRose sales for the fourth quarter of fiscal 2006 to aquaculture markets in Japan were lower than the comparable period in fiscal 2005 as Sea Bream sales remained reduced and growers used less natural astaxanthin in their feed. We now feel that this condition is likely to persist. Overall NatuRose sales were slightly higher compared to the fourth quarter of fiscal 2005 due to initial ordering by customers in other markets. We are seeking to expand NatuRose sales to additional markets, such as salmon feed producers whose customers seek an 'all-natural' designation for their products.
"Sales of finished consumer products increased in the fourth quarter based on new international customers and increased sales in Hawaii."
The full financial statement is available on the Company's website at www.cyanotech.com
