Cyanotech delays earnings again amid review
The Kona company is taking a look at its accounting for inventory costs
Cyanotech Corp., a Big Island producer of nutritional products from microalgae, said yesterday it was delaying the release of its fiscal 2007 first-quarter earnings for a second time -- and this time it isn't saying when the new figures will be ready.
The Kona-based company cited a technical accounting review related to the company's "historical treatment of certain inventory-related costs."
Cyanotech provided no guidance on whether its earnings would be adjusted because of the review and declined to elaborate on the review.
"While we appreciate the public's interest, we can only say what we've said in our public news releases and in our public filings," Chief Financial Officer Bill Maris said.
In an Aug. 11 filing with the Securities and Exchange Commission, Cyanotech reported that it was estimating a fiscal first-quarter loss of $249,000, or 1 cent a share, for the period ended June 30 compared with net income of $153,000, or 1 cent a share, in the year-earlier quarter.
Cyanotech said in the filing that the decrease in net income primarily was due to lower sales from decreased customer orders. The company also said some of its costs have increased from the year-earlier period.
It said that its estimates are subject to change pending the completion of its review of the inventory-related costs.
The company, which has been warned that it will be delisted from the Nasdaq SmallCap Market unless its stock price gets to $1 or greater for 10 consecutive trading days, initially was scheduled to release its earnings on Aug. 10. On the day before, however, Cyanotech said it was delaying its earnings release until yesterday because of the inventory-related costs.
Cyanotech, which posted a fiscal 2006 net loss of $268,000 on $11.1 million in revenue, produces three main products. They are Spirulina, a whole microalgae rich in many nutrients, including antioxidants such as beta-carotene and zeaxanthin; BioAstin, a natural source of astaxanthin that has been shown to be a potent antioxidant, as well as having anti-inflammatory properties; and NatuRose, a source of natural astaxanthin for use in animal feeds.
The company, which has said it would trade on the Over the Counter Bulletin Board if its stock is delisted, has been given until Nov. 27 to reach the $1 level. Cyanotech's shares closed yesterday at 60 cents.