Cyanotech Reports First Quarter Income from Operations with 35% Increase in Sales; Net Loss Is Reduced to $22,000 from a Net Loss of $527,000.Business Editors KAILUA-KONA, Hawaii--(BUSINESS WIRE)--July 25, 2000 Cyanotech Corporation (Nasdaq NMS See NetWare Management System. :CYAN), the world leader in producing high-value, natural products from microalgae, today announced financial results for the first quarter of fiscal 2001, ended June 30, 2000. 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 increased 35% over the first quarter of fiscal 2000 to $2,166,000 from $1,599,000. Gross profit was $704,000 versus $267,000 in the prior year. Income from operations was $46,000 versus a loss from operations of $479,000 in fiscal 2000. The net loss was $22,000 or $0.00 per share (basic and diluted) versus a net loss of $527,000 or ($0.04) per share (basic and diluted). "Higher sales of 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. Pacifica(TM) products and both natural astaxanthin products, NatuRose(TM) and BioAstin(TM), gave Cyanotech the top-line growth anticipated for the first quarter," said Gerald R. Cysewski, Ph.D., chairman, president and CEO (1) (Chief Executive Officer) The highest individual in command of an organization. Typically the president of the company, the CEO reports to the Chairman of the Board. . "In addition, lower astaxanthin production costs and reduced 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. enabled a significantly higher gross profit and renewed income from operations. Gross profit also improved to 33% in the first quarter of fiscal 2001 from 17% in the first quarter of fiscal 2000." Export sales were approximately 48% of total sales for the first quarter. Sales to the Company's largest customer, Spirulina International B.V., accounted for 13% of total sales, a lower percentage than in the prior quarter. Cyanotech expects sales to this customer and other customers to increase in future periods, with a resulting improvement in gross profit. "Our BioAstin program was advanced during the quarter as we filed two additional patent applications covering the protective properties of natural astaxanthin as a systemic sunscreen sunscreen /sun·screen/ (-skren) a substance applied to the skin to protect it from the effects of the sun's rays. sun·screen n. to retard and prevent sunburn sunburn, inflammation of the skin caused by actinic rays from the sun or artificial sources. Moderate exposure to ultraviolet radiation is followed by a red blush, but severe exposure may result in blisters, pain, and constitutional symptoms. by ultraviolet light Ultraviolet light A portion of the light spectrum not visible to the eye. Two bands of the UV spectrum, UVA and UVB, are used to treat psoriasis and other skin diseases. , and for relief of muscle soreness," noted Dr. Cysewski. "Additionally, the double-blind, randomized clinical trial randomized clinical trial, n a clinical study where volunteer participants with comparable characteristics are randomly assigned to different test groups to compare the efficacy of therapies. of BioAstin's effects in relieving carpal tunnel syndrome carpal tunnel syndrome: see repetitive stress injury. carpal tunnel syndrome (CTS) Painful condition caused by repetitive stress to the wrist over time. is underway and we expect to have results by the end of the calendar year." Cyanotech has filed a total of four U.S. patent applications for BioAstin based on the protective properties of astaxanthin. The Company's working capital increased by approximately $2.5 million during the first quarter, mainly as a result of the convertible debenture Convertible Debenture Any type of debenture that can be converted into some other security. Notes: For example, a convertible bond can be converted into stock. and term loan transactions that were completed during the quarter. PROFILE -- Cyanotech Corporation produces high-value natural products from microalgae, and is the world's largest commercial producer of natural astaxanthin from microalgae. Products include BioAstin(TM), a natural astaxanthin product for use as a human nutritional supplement; NatuRose(TM) natural astaxanthin used in the international 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 industry; Spirulina Pacifica(TM), 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 pigments used in the immunological diagnostics market. Corporate and product information is available at http://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. -- 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, changes in sales levels to our largest customers, weather patterns, risks associated with the acceptance of new products, competition, government regulation, and other factors more fully detailed in the company's recent quarterly 10-Q and annual 10-K filings with the Securities and Exchange Commission. WEBCAST -- Cyanotech will hold a conference call on July 25, 2000 at 3:00 p.m. Eastern time to be broadcast live over the Internet. It can be accessed by all interested parties by linking from www.cyanotech.com or through the Investor Broadcast Network's Vcall Web site at www.vcall.com. To listen to the live call, please go to the Web site at least fifteen minutes prior to the start of the call to register, download, and install any necessary audio software. For those who are not available to listen to the live broadcast, a replay will be available shortly after the call on the Vcall site and will be available on the site for 90 days. CONTACT: Cyanotech Ronald P. Scott, EVP-Finance & Administration, (808) 326-1353 rscott@cyanotech.com or Bruce Russell, Investor Relations Investor relations The process by which the corporation communicates with its investors. , (310) 216-1414 brucerussell@ruscom.com (Financial Highlights follow)
Financial Highlights
(in thousands, except per share data)
1st Quarter Fiscal 2001 Three Months Ended June 30,
2000 1999
Income Statement Data
Net sales $ 2,166 $ 1,599
Gross profit $ 704 $ 267
Income (loss) from operations $ 46 $ (479)
Loss before taxes $ (22) $ (527)
Net loss $ (22) $ (527)
Loss available to common stockholders $ (61) $ (587)
Net loss per common share, basic and diluted $(0.00) $(0.04)
Shares used in computing
net loss per common share 14,951 13,610
At June 30, 2000 Mar. 31, 2000
Balance Sheet Data
Working capital $ 4,607 $ 2,094
Total assets $ 22,274 $ 19,689
Total debt $ 4,734 $ 1,493
Stockholders' equity $ 16,749 $ 16,645
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