Cyanotech Reports Financial Results for the Third Quarter of Fiscal 2008.KAILUA KONA, Hawaii -- Cyanotech Corporation (Nasdaq Capital Market Originally called the NASDAQ Small Cap Market, NASDAQ announced a name change to the NASDAQ Capital Market on September 27, 2005. [1] The NASDAQ Capital Market exists for securities of smaller, less-capitalized companies (small caps) that do not qualify for :CYAN), a world leader in producing high-value nutrition and health products from microalgae, today announced financial results for the third quarter and first nine months of fiscal 2008, ended December 31, 2007. Revenues for the third quarter of fiscal 2008 increased 14% to $2,763,000, compared to revenues of $2,434,000 for the third quarter of fiscal 2007. Gross profit for the current third quarter was $353,000, with 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 13%, compared to a gross profit of $78,000 and gross profit margin of 3% reported for the same quarter of the prior year. Net loss for the third quarter was $594,000, or ($0.11) per diluted share, compared to net loss of $1,187,000, or ($0.23) per diluted share for the third quarter of fiscal 2007. Cash and cash equivalents were $790,000 as of December 31, 2007 compared to the March 31, 2007 balance of $1,444,000. Working capital was $2,050,000 at December 31, 2007 compared to $3,361,000 at March 31, 2007. "Revenues in the current third quarter were constrained due to difficulties in 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. production, exacerbated by unprecedented torrential rains and flooding in December, making it impossible to fully satisfy order demand," said Gerald R. Cysewski, Ph.D., Cyanotech's Chairman, President and Chief Executive Officer. "The issues were resolved by the end of the quarter and full spirulina production at typical historical levels was renewed early in January 2008. Sales of spirulina were down 26% for that quarter while sales of natural astaxanthin were up 72%. "Our renewed marketing emphasis on retail products and condition-specific formulations announced earlier in the fiscal year has been moderated while we increase cash resources, which should be assisted going forward by the approximate 20% reduction in our workforce announced in December. We continue to focus on human nutrition products for both spirulina and natural astaxanthin." Sales for the first nine months of fiscal 2008 were $7,950,000, compared to sales of $7,353,000 for the same period of fiscal 2007. Gross profit for the first nine months was $1,867,000, with gross profit margin of 23%, compared to a gross profit of $953,000 and gross profit margin of 13% reported for the same period of the prior year. Net loss for the first nine months was $1,320,000, or ($0.25) per diluted share, compared to net loss of $2,106,000, or ($0.40) per diluted share for the same period of fiscal 2007. About Cyanotech -- Cyanotech Corporation, a world leader in microalgae technology, produces BioAstin[R] Natural Astaxanthin and Hawaiian Spirulina Pacifica[R]--all natural, functional nutrients that enhance human health and nutrition. Cyanotech's spirulina, FDA FDA abbr. Food and Drug Administration FDA, n.pr See Food and Drug Administration. FDA, n.pr the abbreviation for the Food and Drug Administration. reviewed and accepted as Generally Recognized as Safe Generally Recognized as Safe (GRAS) is a United States of America Food and Drug Administration (FDA) designation that a chemical or substance added to food is considered safe by experts, and so is exempted from the usual Federal Food, Drug, and Cosmetic Act (FFDCA) food (GRAS GRAS - A public domain graph-oriented database system for software engineering applications from RWTH Aachen. ) for use as a food ingredient, augments energy and immune response immune response n. An integrated bodily response to an antigen, especially one mediated by lymphocytes and involving recognition of antigens by specific antibodies or previously sensitized lymphocytes. . BioAstin's benefits derive from its superior 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 activity and from its ability to support and maintain natural inflammatory response, enhancing skin, muscle and joint health. NatuRose[R] Natural Astaxanthin is a natural pigment source that also promotes animal health and nutrition, primarily in 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. . Phycobiliproteins are fluorescent pigments used in medical diagnostic testing Diagnostic testing Testing performed to determine if someone is affected with a particular disease. Mentioned in: Von Willebrand Disease and research. Cyanotech produces these products from microalgae grown at its 90-acre facility in Hawaii using patented and proprietary technology and distributes them to nutritional supplement, nutraceutical, cosmeceutical cos·me·ceu·ti·cal n. A cosmetic that has or is purported to have medicinal properties. , and animal feed makers and marketers in more than 40 countries worldwide. Cyanotech was the first microalgae company in the world to obtain ISO (1) See ISO speed. (2) (International Organization for Standardization, Geneva, Switzerland, www.iso.ch) An organization that sets international standards, founded in 1946. The U.S. member body is ANSI. 9001:2000. Visit www.cyanotech.com for more information. "Safe Harbor" 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. 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, production problems caused by contamination, 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 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 Quarter and Nine Months ended December 31, 2007. As such the following Financial Tables are provided only as a guide and 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. [TABLE OMITTED] [TABLE OMITTED] |
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