KAILUA KONA, Hawaii –(BUSINESS THREAD)–Cyanotech Corporation (Nasdaq Capital Market: CYAN), a global leader in high-value health and nutrition dietary supplement products based on microalgae, announced financial results for the first quarter of fiscal 2023, ended 30 of June 2022.
Commenting on the fiscal first quarter 2023 results, Cyanotech President and CEO Matthew K. Custer said, “The disappointing first quarter results were primarily driven by a $2.2 million decrease in sales and a higher cost per kilo of astaxanthin. Lower sales in the quarter were related to the timing of shipments to a Nutrex customer as we transitioned to their sales platform in the prior year, as well as a decrease in bulk spirulina sales. The increase in the cost of astaxanthin was driven by lower production in the first quarter due to staff shortages. Production levels normalized by the end of the first quarter.”
First fiscal quarter 2022
Cyanotech reported net sales of $6,716,000 in the first quarter of fiscal 2023 compared to $8,964,000 in the first quarter of fiscal 2022, a decrease of 25.1%. Gross profit was $2,318,000, with a gross profit margin of 34.5%, compared to gross profit of $3,672,000, with a gross profit margin of 41.0%. Operating loss for the first quarter of fiscal 2023 was $425,000 compared to operating income of $619,000 in the same period last year. Net loss for the current fiscal quarter was $472,000, or $0.08 per diluted share, compared to net income of $520,000, or $0.08 per diluted share, for the same period last year .
Twelve months after all
For the twelve months ended June 30, 2022, compared to the twelve months ended June 30, 2021, net sales were $33,720,000 compared to $33,957,000. Gross profit was $12,212,000, with a gross profit margin of 36.2%, compared to $11,813,000 and 34.8%. Net income was $1,161,000, or $0.19 per diluted share, compared to net income of $1,302,000, or $0.21 per diluted share, which included $1,389,000 for loan forgiveness under the Paycheck Protection Program.
Please review the Company’s Form 10-Q for the period ended June 30, 2022 for more detailed information.
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— Cyanotech will host a webcast at 8:00 PM EDT on Thursday, August 11, 2022 to answer questions about its operating results and other topics of interest. Interested parties are asked to submit questions to questions@cyanotech.com by 12:00 (noon) EDT on Thursday, August 11, 2022. The Company will only respond to relevant questions related to the financial performance of the first fiscal quarter of 2023 and will not be accepting any questions or comments during the broadcast.
To join the broadcast, navigate approximately five minutes before the start time.
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About Cyanotech: Cyanotech Corporation, a world leader in microalgae technology for over 30 years, produces BioAstin® Hawaiian Astaxanthin® and Hawaiian Spirulina Pacifica®. These all-natural ingredients and dietary supplements leverage our expertise and reputation for quality, creating nutritional brands that promote health and wellness. The company’s mission is to fulfill the promise of total health through Hawaiian microalgae. Cyanotech’s BioAstin® offers superior antioxidant activity that supports skin, eye and joint health, as well as exercise recovery*. Cyanotech’s Spirulina products provide nutrition that supports cardiovascular health and immunity*. All Cyanotech products are produced from microalgae grown at our 96-acre facility in Kona, Hawaii, using proprietary and proprietary technology and are generally recognized as safe (“GRAS”) for use in food products. Cyanotech sells its products directly to consumers in retail locations in the United States and online at www.nutrex-hawaii.com and also distributes to manufacturers and marketers of dietary supplements, nutraceuticals and cosmeceuticals. 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 US Private Securities Litigation Reform Act of 1995 In addition to statements of current and historical facts, 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 the forward-looking statements. We caution that we do not rely on forward-looking statements. Important factors that could change actual and future results include: changes in sales levels to our largest customers, weather patterns in Hawaii, production issues, risks associated with new products, currency fluctuations and availability of financing, as well as national and global policies. economic, business, competitive, market and regulatory conditions. Other factors are 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 any other information contained in the Company’s Form 10-Q for the first fiscal quarter of 2023 ended June 30, 2022, which can be found on the website by Cyanotech (www.cyanotech.com) in Investors>Investor requests at the time of presentation. As such, the following financial tables are provided as a guide only and other factors are more fully discussed in the company’s annual Form 10-K filings with the Securities and Exchange Commission.
CYANOTECH CORPORATION
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands, except for amounts per share)
(Not audited)
June 30,
2022
March 31,
2022
ASSETS
Current assets:
cash
$
737
$
2,589
Accounts receivable, net of allowance for doubtful accounts of $67 at June 30, 2022 and March 31, 2022
3.201
3,664
inventories
10,699
9,466
Advances and other current assets
386
545
Total current assets
15,023
16,264
Equipment and leasehold improvements, net
11,916
11,885
Right-of-use assets for operating leases, net
3,682
3,787
Other assets
95
109
Total assets
$
30,716
$
32,045
LIABILITIES AND NET EQUITY
Current liabilities:
Accounts Payable
$
1,927
$
2,362
Accrued expenses
1,337
1,412
Customer deposits
79
164
Operating lease obligations, current part
344
393
Current maturities of long-term debt
386
490
Total current liabilities
4,073
4,821
Long-term debt, less current maturities
4,273
4,336
Long-term operating lease obligations
3,325
3,386
Other long-term liabilities
11
15
Total liabilities
11,682
12,558
Commitments and contingencies
Net worth:
Preferred stock of $0.01 par value, 10,000,000 shares authorized; there are no shares issued and outstanding
—
—
Common stock $0.02 par value, authorized 50,000,000 shares; 6,203,643 shares issued and outstanding on June 30, 2022 and 6,202,223 shares on March 31, 2022
124
124
Additional capital payment
33,576
33,557
Accumulated deficit
(14,666
)
(14,194
)
Total shareholders’ equity
19,034
19,487
Total liabilities and equity
$
30,716
$
32,045
CYANOTECH CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF RESULTS
(In thousands, except for amounts per share)
(Not audited)
Three months over
June 30,
2022
2021
Net sales
$
6,716
$
8,964
The cost of sales
4,398
5,292
gross profit
2,318
3,672
Operating expenses:
General and administrative
1,329
1,347
Sales and marketing
1,168
1,550
Research & Development
246
156
Total operating expenses
2,743
3,053
(Loss) income from operations
(425
)
619
Interest expenses, net
(44
)
(95
)
(Loss) income before income taxes
(469
)
524
Income tax expense
3
4
Net income (loss).
$
(472
)
$
520
Net income (loss) per share:
Basic
$
(0.08
)
$
0.09
diluted
$
(0.08
)
$
0.08
Shares used in the calculation of net profit (loss) per share:
Basic
6.204
6,117
diluted
6.204
6,293
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