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Cyanotech Reports Financial Results for the Second Quarter and First Six Months of Fiscal 2012

KAILUA KONA, Hawaii (November 14, 2011) — Cyanotech Corporation (Nasdaq Capital Market: CYAN), a world leader in microalgae-based, high-value nutrition and health products, today announced financial results for the second quarter and first six months of fiscal year 2012, ended September 30, 2011.

Second Quarter 2012
For the second quarter of fiscal 2012 compared to the second quarter of fiscal 2011, revenues were $5,989,000 compared to $3,834,000. Gross profit was $2,790,000, with gross profit margin of 47%, compared to gross profit of $1,652,000 and gross profit margin of 43%. Net income was $875,000 or $0.16 per diluted share, compared to net income of $526,000 or $0.10 per diluted share.

Six Months 2012
For the first six months of fiscal 2012 compared to the first six months of fiscal 2011, revenues were $11,939,000 compared to $7,690,000. Gross profit was $4,894,000, with gross profit margin of 41%, compared to gross profit of $3,311,000 and gross profit margin of 43%. Net income was $1,361,000 or $0.25 per diluted share, compared to net income of $925,000 or $0.17 per diluted share.

Trailing 12 Months
For the trailing 12 months ended September 30, 2011, compared to the trailing 12 months ended September 30, 2010, revenues were $21,076,000 compared to revenues of $15,486,000. Gross profit was $7,924,000, with gross profit margin of 38%, compared to gross profit of $6,449,000 and gross profit margin of 42%. Net income was $2,166,000 or $0.40 per diluted share, including a non-cash tax benefit of $552,000 due to a reduction in the deferred tax valuation allowance and recording of a net deferred tax asset in the fourth quarter of fiscal 2011, compared to $1,304,000, or $0.26 per diluted share. Income before the income tax benefit was $1,623,000 compared to $1,326,000.

Commenting on the second quarter results, Brent Bailey, President and CEO, said “We’re pleased with our progress on key measures in the second quarter compared to the second quarter of fiscal 2011:

  • Net sales reached a record $5,989,000 (+$2,155,000 and +56%)
  • Gross margin increased to 46.6% (+3.5 pts.)
  • Net Income grew to $875,000 (+$349,000 and +66%)
  • Cash increased to $4,091,000 (+$3,308,000 and +422%)
  • Inventory declined to $3,188,000 (-$1,425,000 and -31%)

In addition, our Nutrex-branded sales grew 73% and represented 37% (+3 pts.) of our net sales.”

For the second quarter of fiscal 2011, Spirulina sales accounted for 40% of total revenues and natural Astaxanthin sales for 60%. International sales were 27% of total sales.

About Cyanotech — Cyanotech Corporation, a world leader in microalgae technology, produces BioAstin® Natural Astaxanthin and Hawaiian Spirulina Pacifica®—all natural, functional nutrients that leverage our experience and reputation for quality, building nutritional brands which promote health and well-being. Cyanotech's Spirulina products offer complete nutrition, and augment energy and immune response. They are FDA-reviewed and accepted as Generally Recognized as Safe (GRAS) for use in food products. BioAstin's superior antioxidant activity and ability to support and maintain a natural anti-inflammatory response enhance skin, muscle and joint health. All Cyanotech products are produced from microalgae grown at its 90-acre facility in Kona, Hawaii using patented and proprietary technology. Cyanotech distributes to nutritional supplement, nutraceutical and cosmeceutical manufacturers and marketers in more than 54 countries worldwide. Cyanotech was the first microalgae company in the world to obtain quality management standards ISO 9001:2000 certification and is GMP-certified by the Natural Products AssociationTM. Visit www.cyanotech.com for more information.

“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 recent Form 10-Q and 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 period ended September 30, 2011. As such the following Financial Tables are provided only as a guide and other factors are more fully detailed in the Company’s Form 10-Q and annual Form 10-K filings with the Securities and Exchange Commission.)

Contact:
Bruce Russell: brussell@cyanotech.com
(310) 559-4955 x101


 

 
 
 
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