Cyanotech restates 3 years of earnings
The biotech company says it will miss another deadline
Cyanotech Corp. restated earnings for its last three fiscal years yesterday, after having delayed its last two quarterly financial reports over questions about how it accounted for inventory-related costs.
The Kona-based producer of nutritional products from microalgae said the restated filing with the Securities and Exchange Commission increased net income for some fiscal years and decreased it for others.
For the last three fiscal years ended March 31, 2004, 2005, and 2006, restated net income decreased by $81,000, increased by $115,000, and decreased by $123,000, respectively. In the fourth quarter of fiscal 2006, net income of $199,000 was changed to a loss of $43,000.
Cyanotech Chief Financial Officer Bill Maris said yesterday that the company was happy to have completed the restatement process and was looking forward to moving ahead.
But the company also said in a separate filing yesterday that it would not meet yesterday's deadline for filing its fiscal 2007 third-quarter report for the period ended Dec. 31, 2006.
Cyanotech's first- and second-quarter reports already had been delayed due to the restatement process. For its fiscal 2006 third quarter, which ended Dec. 31, 2005, Cyanotech reported a loss of $210,000 on revenue of $2.3 million.
Cyanotech said yesterday its net loss for the quarter ended Dec. 31, 2006 is expected to be in the range of $1 million to $1.2 million on revenue of approximately $2.4 to $2.5 million. The company attributed the loss for this quarter to increased production costs, lower-than-planned output and substantial costs related to restatement of its SEC filings.
The company estimated the restatement costs to be in the range of $500,000 for the nine-month period ended Dec. 31, 2006.