Cyanotech loss
narrows to $10,000The Kona company reports
a 17 percent increase in sales
Cyanotech Corp., facing a possible delisting from the Nasdaq SmallCap Market, yesterday reported second-quarter sales increased 17 percent over last quarter.
The Kona company, which makes nutritional and feed products from microalgae, had a net loss for the quarter ended Sept. 30 of $10,000, an improvement over a loss of $540,000 in the same period last year.
Second quarter revenues rose 41 percent to $2.8 million from $2 million a year ago. The increase in sales, quarter-to-quarter, was due primarily to increased bulk sales of the company's natural astaxanthin products -- NatuRose, BioAstin -- and higher sales of packaged consumer products.
"Our increased sales for the quarter ended Sept. 30 combined with our management of costs, demonstrate Cyanotech's continuing focus on achieving profitability," said Gerald Cysewski, chairman, president and chief executive officer.
The company continued to see strong demand for its NatuRose products in Japan and experienced increased sales of its BioAstin products in the United States and Europe, he said. NatuRose allows fish farmers to grow salmon and other fish with pink flesh without using synthetic pigmentation that could create health concerns for people who eat fish.
BioAstin contains natural astaxanthin -- an antioxidant produced by microalgae.
Meanwhile Cyanotech officials are hoping second-quarter improvements will help them remain listed on the Nasdaq SmallCap Market, said Laura Guerrant, a principal with Guerrant Associates, a firm that represents Cyanotech's investor relations.
"We certainly hope they would take this quarter into account. The numbers were absolutely stronger than they've been in the past," Guerrant said.
The company is awaiting a decision from the Nasdaq Listing Qualifications Panel, which had a hearing on the company's trading status Oct. 16, Guerrant said.
Cyanotech received a delisting notice from the Nasdaq SmallCap Market in September for failing to comply with the $1 minimum bid price listing requirement. If the company loses its appeal, its stocks will be traded on the Over-the-Counter Bulletin Board.
The company's shares closed at 48 cents yesterday.
