Cyanotech Corp.’s net income declined in the April-through-June quarter as higher tax rate and an increases in expenses more than offset stronger sales of the company’s microalgae products, the company reported today.
Cyanotech earned $30,000, or 1 cent a share in the quarter, down from $493,000, or 8 cents a share in the year-earlier quarter. An increase in the company’s effective tax rate resulted in pretax income dropping to $136,000 in the most recent quarter from $503,000 in the same period a year earlier.
The company increased its sales of spirulina and astaxanthin to $6.91 million in the quarter, up 6 percent from $6.51 million a year earlier. The biggest gains came in Cyanotech’s consumer products business, which grew by 44 percent.
Cyanotech has been pursuing a strategy to sell more of its algae products at the retail level to consumers as nutritional supplements rather than to the bulk wholesale market.
Cyanotech shares closed down 19 cents at $5.83 on the Nasdaq Capital Market.