Cyanotech reports record financial results for fiscal 1996; sales up 95 percent to $8.1 million, earnings per share increase from 5 cents to 17 cents.KAILUA-KONA, Hawaii--(BUSINESS WIRE)--April 30, 1996--Cyanotech Corp. (NASDAQ/NMS:CYAN) reported revenues and earnings for the fourth quarter and fiscal 1996, ended March 31, 1996. For the fourth quarter, Cyanotech earned $780,000, or 5 cents per share Cents per share The amount of a mutual fund's dividend or capital gains distributions that a shareholder will receive for each share owned. , on revenues of $2,109,000. By comparison, the company reported net income of $266,000, or 2 cents per share, on revenues of $1,229,000 for the same period in fiscal 1995. For fiscal 1996, Cyanotech earned $2,509,000, or 17 cents per share, on revenues of $8,081,000. By comparison, the company reported net income of $769,000, or 5 cents per share, on revenues of $4,150,000 for fiscal 1995. "The 95 percent increase in revenues for fiscal 1996 was due largely to increased market demand for the company's principal product, `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,'" said Gerald R. Cysewski, Ph.D., 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. . "To keep pace with the increased demand during fiscal 1996, the company invested over $4.2 million during the year in additional culture pond capacity, production equipment and process automation systems. A portion of the net proceeds Net Proceeds The amount received after all costs are deducted from the sale of a piece of property or security. Notes: In the case of an investor selling a security, net proceeds represent the proceeds from the sale minus any trading costs (i.e. commissions). from Cyanotech's recently completed stock offering will be used to continue expansion of our production capacity in Kona, Hawaii." Commenting further, Cyanotech's chief financial officer, Ronald P. Scott, said, "Our gross margin for fiscal 1996 of 56 percent increased significantly from 45 percent in the prior fiscal year. "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. for the fiscal year was $2,571,000, or 32 percent of revenue, compared to $718,000, or 17 percent of revenue, in the prior fiscal year. Cash flow from operations Cash flow from operations A firm's net cash inflow resulting directly from its regular operations (disregarding extraordinary items such as the sale of fixed assets or transaction costs associated with issuing securities), calculated as the sum of net income plus noncash expenses was $2,558,000, and, as a result of the recent public offering, Cyanotech ended the fiscal year with cash and cash equivalents of $9,409,000." During the fiscal year, Cyanotech made progress with two potentially significant products in development. Pilot production began in January 1996 on natural "Astaxanthin," a red pigment from microalgae planned to compete with synthetic pigments used primarily in 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. industry to impart pink color to the flesh of pen-raised fish and shrimp. The company also obtained a license to develop, manufacture and sell a genetically engineered genetically engineered adjective Recombinant, see there blue-green algae blue-green algae, popular name for those microorganisms that are now more properly called cyanobacteria. containing a natural bacterial toxin bacterial toxin, n any poisonous substance produced by a bacterium. Two general types are common: those formed within the cell (endotoxins) and those formed within the cell and excreted (exotoxins). , Bti, which, the company believes, when applied to a mosquito-infested body of water, could act as an effective and environmentally safe mosquito-control agent. Development of a commercial production system for this product is expected to start by mid-1996. Cyanotech develops and commercializes natural products from microalgae. The company is currently producing microalgae products for the nutritional supplement and immunological diagnostics markets and is also developing microalgae-based products for the aquaculture feed/pigments, biopesticide and food coloring markets. Nutrex Inc., the company's wholly owned subsidiary Wholly Owned Subsidiary A subsidiary whose parent company owns 100% of its common stock. Notes: In other words, the parent company owns the company outright and there are no minority owners. , produces and markets a line of Spirulina-based nutritional products for the retail market. -0-
CYANOTECH CORP.
Financial Highlights
(In thousands, except per-share and other data)
Three Months ended March 31,
Fourth Quarter 1996 1995
------------------------------ ------- -------
Income Statement Data
Net Sales $ 2,109 $ 1,229
Gross Profit 1,375 534
Income from Operations 790 184
Net Income 780 266
Per Share 0.05 0.02
Weighted Average Shares Outstanding 15,037 13,965
Year ended March 31,
Fiscal Year 1996 1995
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Income Statement Data
Net Sales $ 8,081 $ 4,150
Gross Profit 4,563 1,875
Income from Operations 2,571 718
Net Income 2,509 769
Per Share 0.17 0.05
Weighted Average Shares Outstanding 14,841 13,589
At March 31, 1996 March 31, 1995 ------------------------------ -------------- -------------- Balance Sheet Data Working Capital $ 9,749 $ 600 Total Assets 19,716 6,212 Total Debt 1,114 249 Shareholders' Equity 17,316 5,104 CONTACT: Cyanotech Corp., Kailua-Kona Ronald P. Scott, 808/326-1353 or Investor Relations Investor relations The process by which the corporation communicates with its investors. Bruce Russell Bruce Russell is a New Zealand experimental musician. He is a founding member and guitarist of the noise rock trio The Dead C and the free noise combo A Handful of Dust (with Alastair Galbraith). He has released solo albums featuring guitar and tape manipulation. , 310/216-1414 |
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