Cyanotech Corporation (Nasdaq Capital Market: CYAN), a world
leader in microalgae-based, high-value nutrition and health dietary
supplement products, announced financial results for the second
quarter and first six months of fiscal year 2024, ended September
30, 2023.
Commenting on the second quarter fiscal year 2024 results,
Cyanotech’s President and Chief Executive Officer, Matthew K.
Custer, said:
“The sales in the quarter are trending in the right direction
with a 23.1% increase versus prior year. We generated cash flow
from operations in the quarter of $0.8 million as we manage our
spend in line with customer demand.”
“We continue to focus on driving demand in the naturally derived
algae space with existing and new customers as they prioritize
transparency and sustainability in functional health. Our naturally
farmed microalgae from our location in Hawaii with pristine waters
and natural sourcing practices aligns with rising consumer
objectives and growing demand for responsible, sustainable
products.”
Second Quarter Fiscal 2024
Cyanotech reported net sales of $6,373,000 for the second
quarter of fiscal 2024 compared to $5,179,000 for the second
quarter of fiscal 2023, an increase of 23.1%. Gross profit was
$2,088,000, with gross profit margin of 32.8%, compared to gross
profit of $1,790,000, with gross profit margin of 34.6%. Operating
loss for the second quarter of fiscal 2024 was $632,000 compared to
operating loss of $837,000 in the same period of the prior year.
Net loss for the current fiscal quarter was $797,000, or $0.13 per
diluted share, compared to net loss of $940,000, or $0.15 per
diluted share, for the same period of the prior year.
First Six Months of Fiscal 2024
Cyanotech reported net sales of $11,519,000 for the first six
months of fiscal 2024 compared to $11,895,000 for the same period
in fiscal 2023, a decrease of 3.2%. Gross profit was $3,620,000,
with gross profit margin of 31.4%, compared to gross profit of
$4,108,000, with gross profit margin of 34.5%. Operating loss for
the first six months of fiscal 2024 was $1,841,000 compared to
operating loss of $1,262,000 in the same period of the prior year.
Net loss for the first six months of fiscal 2024 was $2,166,000, or
$0.34 per diluted share, compared to net loss of $1,412,000, or
$0.23 per diluted share, for the same period of the prior year.
Trailing Twelve Months
For the trailing twelve months ended September 30, 2023,
compared to the trailing twelve months ended September 30, 2022,
net sales were $22,801,000 compared to $29,480,000, respectively.
Gross profit was $6,771,000, with gross profit margin of 29.7%,
compared to $10,240,000 and 34.7%. Net loss was $4,195,000, or
$0.67 per diluted share, compared to net loss of $749,000, or $0.12
per diluted share.
Please review the Company’s Form 10-Q for the period ended
September 30, 2023 for more detailed information.
---------------
— Cyanotech will host a virtual broadcast at 8:00 PM EST on
Thursday, November 9, 2023 to respond to questions about its
operating results and other topics of interest. Interested parties
are asked to submit questions to questions@cyanotech.com before 12
p.m. (noon) EST on Thursday, November 9, 2023. The Company will
respond only to relevant questions relating to the Company’s second
quarter fiscal 2024 financial performance and will not be accepting
any questions or comments during the broadcast.
To join the broadcast, please browse http://cyanotech.com/meet
approximately five minutes prior to the start time.
---------------
About Cyanotech — Cyanotech Corporation, a world leader
in microalgae technology for more than 30 years, produces BioAstin®
Hawaiian Astaxanthin® and Hawaiian Spirulina Pacifica®. These
all-natural, dietary ingredients and supplements leverage our
experience and reputation for quality, building nutritional brands
which promote health and well-being. The Company’s mission is to
fulfill the promise of whole health through Hawaiian microalgae.
Cyanotech’s BioAstin® offers superior antioxidant activity which
supports skin, eye and joint health, as well as recovery from
exercise*. Cyanotech's Spirulina products offer nutrition that
supports cardiovascular health and immunity*. All Cyanotech
products are produced from microalgae grown at our 96-acre facility
in Kona, Hawaii using patented and proprietary technology and are
Generally Recognized as Safe (“GRAS”) for use in food products.
Cyanotech sells its products direct to consumers at retail
locations in the United States and online at www.nutrex-hawaii.com
and also distributes to dietary supplement, nutraceutical and
cosmeceutical manufacturers and marketers. The Company is regulated
by the Food and Drug Administration. Visit www.cyanotech.com for
more information.
*These statements have not been evaluated
by the Food and Drug Administration. This product is not intended
to diagnose, treat, cure or prevent any disease.
“Safe Harbor” Statement under the U.S. Private
Securities Litigation Reform Act of 1995 Besides statements of
present fact and historical fact, this press release may contain
forward-looking statements. Forward-looking statements relate to
the future and are subject to inherent uncertainties, risks and
changes in circumstances that are difficult to predict. Our actual
results may differ materially from those contemplated by
forward-looking statements. We caution against relying on
forward-looking statements. Important factors that could change
actual, future results include: changes in sales levels to our
largest customers, weather patterns in Hawaii, production problems,
risks associated with new products, foreign exchange fluctuations,
and availability of financing, as well as national and global
political, economic, business, competitive, market and regulatory
conditions. Other factors are more fully detailed in the Company’s
annual Form 10-K filings with the Securities and Exchange
Commission.
Financial Tables Follow: The following tables do not
contain footnotes or other information contained in the Company’s
Form 10-Q for the second quarter fiscal 2024 ended September 30,
2023, which can be found on the Cyanotech website
(www.cyanotech.com) under Investors>Investor Filings upon
filing. As such, the following Financial Tables are provided only
as a guide and other factors are more fully detailed in the
Company’s annual Form 10-K filings with the Securities and Exchange
Commission.
CYANOTECH CORPORATION
CONDENSED CONSOLIDATED BALANCE
SHEETS
(In thousands, except per share
amounts)
(Unaudited)
September 30, 2023
March 31, 2023
ASSETS
Current assets:
Cash
$
1,236
$
974
Accounts receivable, net of allowance for
credit losses of $11 as of September 30, 2023 and $64 as of March
31, 2023
1,430
1,331
Inventories
9,591
10,707
Prepaid expenses and other current
assets
428
484
Total current assets
12,685
13,496
Equipment and leasehold improvements,
net
10,775
11,366
Operating lease right-of-use assets,
net
4,534
4,776
Other assets
88
90
Total assets
$
28,082
$
29,728
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Accounts payable
$
1,392
$
1,021
Accrued expenses
897
1,101
Customer deposits
127
89
Operating lease obligations, current
portion
506
483
Line of credit
1,480
1,540
Line of credit – related party
1,000
500
Current maturities of long-term debt
3,257
3,369
Total current liabilities
8,659
8,103
Long-term debt, less current
maturities
1,000
1,000
Long-term operating lease obligations
4,016
4,275
Other long-term liabilities
—
3
Total liabilities
13,675
13,381
Commitments and contingencies
Stockholders’ equity:
Preferred stock of $0.01 par value,
authorized 10,000,000 shares; no shares issued and outstanding
—
—
Common stock of $0.02 par value,
authorized 50,000,000 shares; issued and outstanding 6,473,779
shares at September 30, 2023 and 6,271,971 shares at March 31,
2023
129
125
Additional paid-in capital
34,078
33,856
Accumulated deficit
(19,800
)
(17,634
)
Total stockholders’ equity
14,407
16,347
Total liabilities and stockholders’
equity
$
28,082
$
29,728
CYANOTECH CORPORATION
CONDENSED CONSOLIDATED
STATEMENTS OF OPERATIONS
(In thousands, except per share
amounts)
(Unaudited)
Three Months Ended September
30,
Six Months Ended September
30,
2023
2022
2023
2022
Net sales
$
6,373
$
5,179
$
11,519
$
11,895
Cost of sales
4,285
3,389
7,899
7,787
Gross profit
2,088
1,790
3,620
4,108
Operating expenses:
General and administrative
1,160
1,279
2,434
2,608
Sales and marketing
1,385
1,142
2,661
2,310
Research and development
175
206
366
452
Total operating expenses
2,720
2,627
5,461
5,370
Loss from operations
(632
)
(837
)
(1,841
)
(1,262
)
Interest expense, net
(163
)
(103
)
(323
)
(147
)
Loss before income taxes
(795
)
(940
)
(2,164
)
(1,409
)
Income tax expense
2
—
2
3
Net loss
$
(797
)
$
(940
)
$
(2,166
)
$
(1,412
)
Net loss per share:
Basic
$
(0.13
)
$
(0.15
)
$
(0.34
)
$
(0.23
)
Diluted
$
(0.13
)
$
(0.15
)
$
(0.34
)
$
(0.23
)
Shares used in calculation of net loss per
share:
Basic
6,366
6,228
6,328
6,216
Diluted
6,366
6,228
6,328
6,216
View source
version on businesswire.com: https://www.businesswire.com/news/home/20231108568176/en/
Bruce Russell (310) 346-6131 brussell@cyanotech.com
Cyanotech (NASDAQ:CYAN)
Historical Stock Chart
From Jul 2024 to Aug 2024
Cyanotech (NASDAQ:CYAN)
Historical Stock Chart
From Aug 2023 to Aug 2024