Cyanotech Corp., needing additional funding and faced with delisting by the Nasdaq because of a low stock price, said its loss in its fiscal 2003 first quarter nearly doubled from a year ago due to declining sales in its primary product, Spirulina. Cyanotech loss grows
Star-Bulletin staff
The Big Island company, which develops and commercializes products from microalgae, lost $785,000, or 5 cents a share, from $413,000, or 2 cents a share, a year ago. Revenues slipped 12.1 percent to $2 million from $2.3 million.
Despite the wider shortfall, gross profit margins, or the percentage of sales left after subtracting manufacturing costs, improved to 39 percent from 29 percent a year ago as the company benefited from the use of all its culture ponds.
Cyanotech said it is working to obtain additional financing or equity to retire $1.2 million in convertible debentures due Oct. 31 and to provide additional working capital.
In other developments, the company said:
>> It is remaking its 30-minute television infomercial for nutritional product BioAstin to focus more on joint pain relief and will test-market the new commercial in September.
>> It expects to see increased BioAstin consumer product sales over the next six to nine months as a result of a new West Coast sales campaign that will promote the product in health food stores, pharmacies and mass merchandise outlets.
>> It is in advanced discussions with several multinational cosmetic and skin-care companies that are interested in using the BioAstin ingredient in their products.
