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Cyanotech’s income drops a penny to 7 cents a share

Cyanotech Corp., a maker of nutritional products out of microalgae, posted a slight dip in its fiscal first-quarter earnings as revenue eased from a year ago.

The Kona-based company had net income of $399,000, or 7 cents a share, compared with $413,000, or 8 cents a share, a year ago.

Revenue fell 4.1 percent to $3.9 million from $4 million.

"Cyanotech’s performance was steady … for both our bulk raw material spirulina and astaxanthin products and our branded packaged products," David Rosenthal, interim president and chief executive officer, said yesterday.

Rosenthal said the company’s production "continues to show excellent yields, which should enable us to meet increased demand for our bulk and packaged products as we go forward."

He also said Cyanotech is putting increased emphasis — principally domestically — on its Nutrex Hawaii consumer products to introduce them to a broader consumer market than in prior years. Nutrex Hawaii is the company’s brand packaged under its own label. The company has typically sold most of its products outside Hawaii to other brand owners to use in those companies’ products.

"Our marketing team is making good progress with new retail outlets, both major chain stores and their online stores," Rosenthal said.

Spirulina sales accounted for 51 percent of total revenue last quarter, while astaxanthin sales accounted for 49 percent of the company’s revenue. Spirulina has more than 100 nutrients, including protein, while Cyanotech’s astaxanthin products are dietary supplements with antioxidants and health benefits, including the support of healthy joints and ultraviolet protection.

International sales represented 46 percent of the company’s total sales last quarter compared with 47 percent in the year-earlier period.

Cyanotech’s shares rose 11 cents, or 5.4 percent, yesterday to $2.15 on the Nasdaq.


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