Hawaii algae producer Cyanotech Corp. came close to financially breaking even in its 2015 fiscal year after a larger net loss last year that followed four consecutive years of profit.
The company based on Hawaii island reported Wednesday a $24,000 net loss for its fiscal year ended March 31. That compared with a $420,000 net loss in the prior fiscal year.
Cyanotech, which makes nutrition and health products from microalgae at its 90-acre facility in Kona, said revenue in the recent fiscal year increased 20 percent to $33.8 million from $28.2 million a year earlier.
In the fiscal fourth quarter representing the first three months of this year, the company had a net loss of $171,000 on revenue of $8.6 million compared with a $520,000 loss on revenue of $7 million.
Brent Bailey, Cyanotech president and CEO, said in a statement that the company’s performance was hurt by challenges producing one of its products, Astaxanthin, as well as legal costs for litigation that is now resolved.
“We still have much work to do to realize our potential,” he said.
Astaxanthin sales declined 4 percent during the recent fiscal year largely due to weather impacts.
On the positive side, sales of the company’s Nutrex packaged consumer products grew 44 percent. The company said it also is operating new equipment to extract Astaxanthin after a 10-month delay, and that the equipment is expected to reduce costs significantly and speed up processing.
Cyanotech’s financial report filed Wednesday with the U.S. Securities and Exchange Commission was delayed by nearly a month due to mistakes discovered in prior annual reports. The company said in some instances it recognized revenue for orders before goods changed hands, and that corrections resulted in relatively small adjustments to net income.
After the corrections, the company’s net loss for the 2014 fiscal year increased by $45,000 to $420,000 while net profit for the 2013 fiscal year was decreased by $225,000 to $4.2 million.
Shares of Cyanotech stock declined 62 cents to close at $8.12 Wednesday from $8.74 the day before. Shares over the last 52 weeks have closed as high as $10.25 on June 26 and as low as $4.45 on Aug. 8.