Cyanotech recognized as 'hot' growth company

The Big Isle biotech firm makes Business Week's top 100 list

Star-Bulletin staff

Business Week magazine has named Cyanotech Corp. as one of the nation's 100 fastest growing small companies.

In its "Hot Growth Companies" cover story in the May 26 issue, the national magazine rated the Kailua-Kona company as the 67th fastest growing small corporation.

The fastest growing company is Yurie Systems Inc., a Lanham, Md., telecommunications product maker, according to the magazine.

Cyanotech, which produces microalgae products for nutritional and pharmaceutical uses, was the only Hawaii company to make Business Week's survey, which analyzed small companies' three-year performances in sales, profit and return on invested capital.

"It certainly gives us a lot of credibility," said Ronald Scott, Cyanotech's chief financial officer.

Scott noted that Cyanotech is in the midst of an aggressive growth program. The company recently received state approval to nearly double its Big Island plant to 178 acres from 90 acres, Scott said.

According to Business Week, the 100 fastest growing companies outperformed companies that make up the Standard & Poors industrial index. The top 100 companies enjoyed average annual sales growth of 57.7 percent during the past three years, compared with 8.21 percent for the Standard & Poor's companies.

The magazine said to qualify, a company had to have annual sales of more than $10 million and less than $150 million, a current market value greater than $1 million, a stock price greater than $2, and be actively traded.

In trading today on the Nasdaq stock market, Cyanotech shares rose 19 cents to close at $5.75.

The company, which has about 50 employees, had annual sales of $11.4 million in its latest fiscal year, which ended March 31, according to Bloomberg News.