Cyanotech Corp. said today that revenues increased in its fiscal 2002 fourth quarter but its net loss widened from a year ago as weather-related production decreases and higher research and marketing expenses cut into earnings.
Higher expenses boost
Cyanotech loss to $730,000
By Dave Segal
The Big Island biotechnology company, which develops and commercializes natural products from microalgae, also said it has reached agreement with holders of its 6 percent convertible debentures to extend the maturity date by six months. As a result, the company will take a restructuring charge of approximately $236,000 in its fiscal 2003 first quarter.
Cyanotech, which has stepped up marketing and clinical tests of its nutritional supplement BioAstin, saw total sales for the company jump 17 percent to $2.1 million in the fiscal quarter ending March 31, 2002, compared with $1.8 million in the year-ago quarter. Its net loss widened to $730,000, or 4 cents a share, from $683,000, or 4 cents a share, in the fourth quarter of fiscal 2001. The company said gross profit margins, excluding depreciation expenses, fell to 32 percent from 39 percent in the year-ago quarter.
The company also said results of a BioAstin infomercial that was tested in several markets in late April and early May were "less than anticipated" and are being analyzed to refocus the program.
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