A Hawaii island company that produces and sells health products it makes from microalgae suffered a bigger financial loss in its fiscal third quarter, as a drop in bulk product sales overshadowed a gain in branded packaged product sales.

Cyanotech Corp. reported a $349,000 loss in the three-month period ended Dec. 31, up from a $250,000 loss in the same quarter a year earlier, according to a recent financial report.

Gerry Cysewski, company president and CEO, said in a statement that results for the recent quarter reflected an ongoing strategy to focus on selling packaged products in stores and online. He said the company is working to improve its profit margin on the retail items called BioAstin and Hawaiian Spirulina Pacifica.

Sales of Cyanotech’s higher-priced packaged products rose 4 percent, which helped total revenue edge up 1 percent to $7.6 million in the recent quarter from $7.5 million a year earlier. A drag on revenue was a 16 percent decrease in bulk microalgae sales.

Cyanotech’s wider net loss in the recent quarter was partly due to a lower gross profit margin, which was 38 percent in the recent quarter compared with 41 percent a year earlier, the company reported.