POSTED: 1:30 a.m. HST, Nov 11, 2010
Cyanotech Corp.'s profit edged lower in the latest quarter due to a modest decline in international bulk sales of its nutritional microalgae products, the company reported yesterday.
Despite the slight decline, Cyanotech said the earnings report confirmed the company is on solid footing.
"We saw key positive trends reflecting our new sales and marketing initiatives," said David Rosenthal, interim president and chief executive officer.
"International sales of bulk products were down slightly in the second quarter, which we believe resulted from the timing of orders by major customers," Rosenthal said.
"At the same time, our U.S. mainland sales of Nutrex Hawaii-branded consumer products, in which we are focusing on retail outlets, grew 15 percent from the first quarter of fiscal 2011 to the second quarter."
Overall revenue declined to $3.8 million in the July-to-September quarter from $3.9 million the same quarter a year earlier.
Cyanotech's main microalgae products are Astaxanthin and Spirulina, which accounted for 51 percent of sales and 49 percent of sales, respectively, in the second fiscal quarter.
Cyanotech on Monday named a permanent CEO to replace Rosenthal. Brent Bailey, who has held senior positions at a leading nutritional supplement supplier, a management consulting firm and several food and beverage companies, will become CEO effective Jan. 11.
Shares of Cyanotech rose 6 cents, or 2.5 percent, to close at $2.46 yesterday on the Nasdaq market.