Cyanotech Holding in 1Q11

KAILUA KONA, HawaiiCyanotech Corp. (NASDAQ: CYAN) issued its financial results for the first quarter of fiscal 2011 (1Q11), ended June 30, 2010. Revenues of $3.86 million for 1Q11 were down slightly from $4.02 million posted for the three months ended June 30, 2009 (1Q10). Net income was also down, posting at $399,000 for 1Q11 compared to $413,000 in 1Q10. However, gross profit margin held steady at 43 percent in both quarters.

Cyanotechs performance was steady in the first quarter of fiscal 2011 for both our bulk raw material Spirulina and Astaxanthin products and our branded packaged products," said David I. Rosenthal, interim president and CEO. As a world leader in the production and marketing of high-value natural products from microalgae, we are putting increased emphasis on our Nutrex Hawaii consumer products to introduce them to a broader consumer market than in prior years, principally domestic. [and] Our production continues to show excellent yields, which should enable us to meet increased demand for our bulk and packaged products as we go forward."

Spirulina sales accounted for 51 percent of total revenues, and natural astaxanthin sales for 49 percent of revenues. International sales made up 46 percent of sales in 1Q11. The company did see a rise in working capital for the calendar year, hitting $5.24 million on June 30, 2010, compared to $4.94 million as of March 31, 2010.