Wednesday, January 20, 1999

Cyanotech losses
more than double,
hit $719,000

NatuRose production expenses
are cited for the shortfall

By Russ Lynch


Cyanotech Cyanotech Corp. today reported a loss of $719,000 for the three months through Dec. 31, its fiscal third quarter. The loss was more than double the $286,000 loss reported for the third quarter of the previous year.

The Kona-based microalgae company said the negative results came from expenses in gearing up for efficient production of its NatuRose fish and animal feed additive, produced from algae grown in its Kona ponds.

Developed last year, NatuRose is a natural astaxanthin, used to add color to the flesh of pond-raised fish and shrimp. It is also used in animal feeds.

Info Box Gerald R. Cysewski, Cyanotech chairman, president and chief executive, said NatuRose sales in the third quarter were minimal but the company is negotiating with several large international producers of animal feeds and expects significant sales in the future.

Meanwhile, he said, Cyanotech is reducing its expenses in an effort to get them more in line with sales, he said.

The company's overall sales for the third quarter were $1.7 million, up 6 percent from $1.6 million in the year-earlier quarter.

Cysewski said interest expenses on the 15-year-old company's $3 million line of credit also contributed to the third-quarter loss.

In addition to NatuRose, Cyanotech also produces a nutrient-rich diet supplement called Spirolina Pacifica and natural fluorescent pigments used in immunology diagnostics.

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