Cyanotech Corporation Reports Fourth Quarter and Fiscal Year-End 2004 Financial Results; Company Reports Net Income of $399,000 for the Fiscal Year Ended March 31, 2004.Business Editors/Health/Medical Writers KAILUA Kailua (käēl  `ə), uninc. city (1990 pop. 36,818), Honolulu co., Hawaii, on the southeastern coast of Oahu, on Kailua Bay. A Univ. KONA Kona (kō`nə), district, along the western coast of the island of Hawaii. It is Hawaii's coffee belt and the only coffee-producing area in the United States. The Kona coast, with fine deep-sea fishing offshore, is a favorite tourist spot. , Hawaii--(BUSINESS WIRE)--May 11, 2004Cyanotech Corporation (Nasdaq:CYAN), a world leader in producing high-value natural products from microalgae microalgae unicellular aquatic plants (phytoplankton), the starting point of the aquatic food chain. Include toxic microalgae which are important causes of marine fish mortalities, especially Alexandrium, Chaltonella, Heterosigma spp. , today announced financial results for the fourth quarter and fiscal year ended March 31, 2004. Financial Results -- Fiscal 2004 For the 12 months ended March 31, 2004 (Fiscal 2004), the Company reported net income of $399,000, or $0.02 per diluted di·lute tr.v. di·lut·ed, di·lut·ing, di·lutes 1. To make thinner or less concentrated by adding a liquid such as water. 2. To lessen the force, strength, purity, or brilliance of, especially by admixture. share, contrasting with the net loss of $1,775,000, or ($0.10) per diluted share reported for the prior fiscal year. Net sales Net Sales The amount a seller receives from the buyer after costs associated with the sale are deducted. Notes: This amount is calculated by subtracting the following items from gross sales: merchandise returned for credit, allowances for damaged or missing goods, freight for fiscal 2004 were $11,582,000, an increase of 29% from the prior fiscal year's sales of $8,951,000. Foreign sales accounted for 53% of total sales for fiscal 2004, compared to 54% reported for fiscal 2003. The growth in revenues resulted from increased bulk sales of the Company's natural astaxanthin Astaxanthin (pronounced as-tuh-zan'-thin) is a carotenoid. It belongs to a larger class of phytochemicals known as terpenes. It is classified as a xanthophyll, which means "yellow leaves". Like many carotenoids, it is a colorful, fat/oil-soluble pigment. products: NatuRose(R) and BioAstin(R). For fiscal 2004, gross profit was $3,940,000, compared to $2,895,000 reported for fiscal 2003. The Company recorded a gross profit margin Gross profit margin Gross profit divided by sales, which is equal to each sales dollar left over after paying for the cost of goods sold. gross profit margin A measure calculated by dividing gross profit by net sales. of 34% for fiscal 2004, up slightly from gross profit margin of 32% reported for fiscal 2003. This improvement in gross profit and gross profit margin was due to increased bulk sales of higher margin NatuRose and BioAstin products and to improvement in product cultivation cultivation, tilling or manipulation of the soil, done primarily to eliminate weeds that compete with crops for water and nutrients. Cultivation may be used in crusted soils to increase soil aeration and infiltration of water; it may also be used to move soil to or and processing. During fiscal 2004, operating expenses Operating expenses The amount paid for asset maintenance or the cost of doing business, excluding depreciation. Earnings are distributed after operating expenses are deducted. decreased by 22% to $3,211,000 from the $4,105,000 reported for fiscal 2003. Increased sales and a reduced level of operating expenses resulted in operating income Operating Income The profit realized from a business' own operations. Notes: This would not include income from things such as investments in other firms. Also referred to as operating profit or recurring profit. of $729,000 for fiscal 2004, in contrast to the loss from operations of $1,210,000 reported for the prior fiscal year. The Company ended fiscal 2004 with working capital of $4,083,000 and cash and cash equivalents of $2,531,000, compared to working capital of $2,352,000, and cash and cash equivalents of $579,000 reported at the beginning of the fiscal year. Financial Results -- Fourth Quarter FY 2004 For the fourth quarter of fiscal 2004, the Company reported net income of $441,000, or $0.02 per diluted share, on sales of $3,290,000, an improvement from net income of $109,000 or $0.01 per diluted share in the third quarter of fiscal 2004 and contrasting with the net loss of $270,000 or ($0.01) per diluted share reported for the comparable prior year period. Net sales for the fourth quarter of fiscal 2004 increased by 9% from $3,024,000 recorded for the third quarter of fiscal 2004 and by 36% from $2,427,000 recorded for the fourth quarter of the prior fiscal year. Foreign sales accounted for 53% of total sales in the fourth quarter of fiscal 2004, compared to 52% reported for the comparable period of fiscal 2003. Gross profit for the fourth quarter of fiscal 2004 was $1,191,000, compared to gross profit of $831,000 reported for the comparable period of the prior year. The Company reported gross profit margin of 36% for the fourth quarter of fiscal 2004, down from 39% in the third quarter of fiscal 2004, but up slightly from 34% reported in the fourth quarter of the prior year. The decrease in gross profit margin from the prior quarter reflects the effect of higher bulk sales of lower margin Spirulina spirulina Any cyanobacteria in the genus Spirulina. A traditional food source in parts of Africa and Mexico, spirulina is an exceptionally rich source of vitamins, minerals, and protein, and one of the few nonanimal sources of vitamin B12. products in proportion to total sales. The year-over-year gain resulted from improvement in the Company's cultivation processes and increased bulk sales of higher margin natural astaxanthin products, NatuRose and BioAstin. Operating expenses for the fourth quarter of fiscal 2004 decreased to $736,000, or 22% of sales. This is a decrease from both the third quarter of fiscal 2004 ($892,000 or 29% of sales) and the comparable prior year period ($1,053,000 or 43% of sales). The combined effect of increased sales and lower operating expenses resulted in income from operations of $455,000 for the fourth quarter of fiscal 2004, up from $292,000 in the third quarter of fiscal 2004 and contrasting with the loss from operations of $222,000 recorded for the fourth quarter of the prior year period. "We are extremely pleased with the Company's profitability for the quarter and year," said Gerald Gerald - ["Gerald: An Exceptional Lazy Functional Programming Language", A.C. Reeves et al, in Functional Programming, Glasgow 1989, K. Davis et al eds, Springer 1990]. R. Cysewski, Ph.D., Chairman, President and Chief Executive Officer. "Throughout fiscal 2004, our continued focus on marketing and productivity has resulted in sequential sales growth, improved gross margins, increased cash balances and profitability. As we enter fiscal 2005, our recent track record of increasing sales on a sequential quarter basis, managing operating expenses as appropriate for supporting our business initiatives and a substantially improved balance sheet place us in good stead stead n. 1. The place, position, or function properly or customarily occupied by another. 2. Advantage; service; purpose: "His personal relationship with the electorate stands in good stead" for future growth." About Cyanotech Cyanotech Corporation, a world leader in microalgal technology, produces high-value natural products from microalgae and is the world's largest commercial producer of natural astaxanthin (pronounced "asta-zan-thin") from microalgae. Products include BioAstin(R) natural astaxanthin, a powerful antioxidant antioxidant, substance that prevents or slows the breakdown of another substance by oxygen. Synthetic and natural antioxidants are used to slow the deterioration of gasoline and rubber, and such antioxidants as vitamin C (ascorbic acid), butylated hydroxytoluene with expanding applications as a human nutraceutical nu·tra·ceu·ti·cal n. A food or naturally occurring food supplement thought to have a beneficial effect on human health. nutraceutical ; NatuRose(R) natural astaxanthin for the aquaculture aquaculture, the raising and harvesting of fresh- and saltwater plants and animals. The most economically important form of aquaculture is fish farming, an industry that accounts for an ever increasing share of world fisheries production. and animal feed industries; Spirulina Pacifica Pacifica (pəsĭf`ĭkə), city (1990 pop. 37,670), San Mateo co., W Calif., on the Pacific coast; inc. 1957. A residential city, Pacifica was formed by the consolidation of several communities in 1957. See AMD-V. , a nutrient-rich dietary supplement Noun 1. dietary supplement - something added to complete a diet or to make up for a dietary deficiency diet - a prescribed selection of foods vitamin pill - a pill containing one or more vitamins; taken as a dietary supplement ; and phycobiliproteins, which are fluorescent fluorescent having the quality of fluorescence. fluorescent antibody see fluorescence microscopy. fluorescent antibody test see fluorescence microscopy. pigments used in the immunological immunologic, immunological emanating from or pertaining to immunology. immunologic competence see immunocompetence. immunologic domains diagnostics (1) Software routines that test hardware components (memory, keyboard, disks, etc.). Diagnostics are often stored in ROM chips and activated on startup. (2) Error messages in a programmer's source code that refer to statements or syntax that the compiler or assembler market. Spirulina Pacifica and BioAstin are sold directly online through the Company's website, www.nutrex-hawaii.com, as well as through resellers in over 30 countries worldwide. Technical information for the Company's phycobiliproteins products is available at www.phycobiliprotein Phycobiliproteins are water-soluble proteins present in cyanobacteria and certain algae (rhodophytes, cryptomonads, glaucocystophytes) that capture light energy which is then passed on to chlorophylls during photosynthesis. .com. Corporate data and other product information are available at www.cyanotech.com. "Safe Harbor Safe Harbor 1. A legal provision to reduce or eliminate liability as long as good faith is demonstrated. 2. A form of shark repellent implemented by a target company acquiring a business that is so poorly regulated that the target itself is less attractive. " Statement under the Private Securities Litigation Reform Act The Private Securities Litigation Reform Act of 1995 (PSLRA) implemented several significant substantive changes affecting certain cases brought under the federal securities laws, including changes related to pleading, discovery, liability, class representation and awards fees and of 1995 Except for statements of historical fact, the statements in this press release are forward-looking for·ward-look·ing adj. Concerned with or making provision for the future: forward-looking educators; a forward-looking corporate plan. Adj. 1. . Such statements are subject to a number of risks and uncertainties that could cause actual results to differ materially from the statements made. These factors include, but are not limited to, general economic conditions, forecasts of sales in future periods, changes in sales levels to our largest customers, weather patterns, risks associated with the acceptance of new products, competition, foreign exchange fluctuations, government regulation, and other factors more fully detailed in the Company's recent Form 10-Q Form 10-Q See 10-Q. and annual form 10-K Form 10-K A report required by the SEC from exchange-listed companies that provides for annual disclosure of certain financial information. Form 10-K See 10-K. filings with the Securities and Exchange Commission. Webcast Cyanotech Corporation will hold a conference call on Tuesday, May 11, 2004 at 5:30 p.m. Eastern Time to be broadcast live over the Internet Internet Publicly accessible computer network connecting many smaller networks from around the world. It grew out of a U.S. Defense Department program called ARPANET (Advanced Research Projects Agency Network), established in 1969 with connections between computers at the . It can be accessed by all interested parties by linking through the Investor Broadcast Network's VCall website at www.vcall.com or through Cyanotech's website, http://www.cyanotech.com. To access the simultaneous webcast on the Cyanotech site, select the Recent News section from Cyanotech's home page. Click on the announcement entitled en·ti·tle tr.v. en·ti·tled, en·ti·tling, en·ti·tles 1. To give a name or title to. 2. To furnish with a right or claim to something: , "Cyanotech Announces Financial Results Webcast May 11, 2004." To listen to the live call, please go to either website at least 15 minutes prior to the start of the call to register, download To receive a file transmitted over a network. In any communications session, "download" means receive, and "upload" means send. The download/upload often implies a big/little scenario, in which data is being downloaded from the "big" server into the "little" user's computer. , and install any necessary audio software. For those who are not able to listen to the live broadcast, a replay will be available shortly after the call and will be archived for a period of one calendar year.
CYANOTECH CORPORATION
CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except per share amounts)
(Unaudited)
Three Months Twelve Months
Ended Ended
March 31, March 31,
----------------- -----------------
2004 2003 2004 2003
-------- -------- -------- --------
NET SALES $ 3,290 $ 2,427 $11,582 $ 8,951
COST OF PRODUCT SALES 2,099 1,596 7,642 6,056
-------- -------- -------- --------
Gross profit 1,191 831 3,940 2,895
-------- -------- -------- --------
OPERATING EXPENSES:
Research and development 32 33 149 217
Sales and marketing 278 450 1,239 1,827
General and administrative 426 570 1,823 2,061
-------- -------- -------- --------
Total operating expenses 736 1,053 3,211 4,105
-------- -------- -------- --------
Income (loss) from operations 455 (222) 729 (1,210)
-------- -------- -------- --------
OTHER INCOME (EXPENSE):
Interest income - 10 13 33
Interest expense (36) (79) (286) (418)
Other income (expense), net 1 12 18 (189)
-------- -------- -------- --------
Total other expense (35) (57) (255) (574)
-------- -------- -------- --------
Income (loss) before income
taxes 420 (279) 474 (1,784)
INCOME TAX BENEFIT (EXPENSE) 21 9 (75) 9
-------- -------- -------- --------
NET INCOME (LOSS) $ 441 $ (270) $ 399 $(1,775)
======== ======== ======== ========
NET INCOME (LOSS) PER SHARE
Basic $ 0.02 $ (0.01) $ 0.02 $ (0.10)
======== ======== ======== ========
Diluted $ 0.02 $ (0.01) $ 0.02 $ (0.10)
======== ======== ======== ========
SHARES USED IN CALCULATION OF NET
INCOME (LOSS) PER SHARE:
Basic 20,470 18,317 18,971 17,840
======== ======== ======== ========
Diluted 20,809 18,317 19,111 17,840
======== ======== ======== ========
COMPREHENSIVE INCOME (LOSS):
Net income (loss) $ 441 $ 270 $ 399 $(1,775)
Other comprehensive income
(loss) 5 (9) 33 (1)
-------- -------- -------- --------
$ 446 $ (279) $ 432 $(1,776)
======== ======== ======== ========
CYANOTECH CORPORATION
CONSOLIDATED BALANCE SHEETS
(Dollars in thousands except per share amounts)
(Unaudited)
March 31, March 31,
2004 2003
--------- ---------
ASSETS
Current assets:
Cash and cash equivalents $ 2,531 $ 579
Accounts receivable, net 2,229 1,839
Refundable income taxes 11 9
Inventories 1,099 1,400
Prepaid expenses and other 37 40
--------- ---------
Total current assets 5,907 3,867
Equipment and leasehold improvements, net 11,844 12,777
Other assets 606 838
--------- ---------
Total assets $ 18,357 $ 17,482
========= =========
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Current maturities of long-term debt $ 346 $ 323
Accounts payable 874 803
Accrued expenses 604 389
--------- ---------
Total current liabilities 1,824 1,515
Long-term debt, excluding current maturities 2,093 3,694
--------- ---------
Total liabilities 3,917 5,209
--------- ---------
Stockholders' equity:
Common Stock of $0.005 par value, shares
authorized 25,000,000; shares issued and
outstanding 20,714,246 at March 31, 2004 and
18,316,701 at March 31, 2003 104 92
Additional paid-in capital 27,141 25,418
Accumulated other comprehensive income (loss) -
foreign currency translation adjustments 30 (3)
Accumulated deficit (12,835) (13,234)
--------- ---------
Total stockholders' equity 14,440 12,273
--------- ---------
Total liabilities and stockholders' equity $ 18,357 $ 17,482
========= =========
|
|
||||||||||||||||
Printer friendly
Cite/link
Email
Feedback
Reader Opinion