Hawaii island microalgae producer Cyanotech Corp. boosted sales in its fiscal third quarter to a record but failed to achieve a profit because of higher costs.
The company announced Wednesday that it lost $288,000 in the three months ended Dec. 31 compared with a $1.1 million profit in the same period a year earlier.
The loss occurred despite achieving a quarterly revenue record of $10 million in the recent quarter. A year earlier, sales totaled $9.2 million.
Cyanotech said its bottom line was hurt by higher costs that included an additional $500,000 in operating expenses and $400,000 more spent on sales and marketing.
“Though we are encouraged by the record sales numbers for the quarter, we remain unsatisfied with current profit margins,” company CEO Mawae Morton said in a statement.
Morton also noted that Cyanotech is restructuring its executive team. The company on Jan. 3 hired a new chief financial officer, Brian Orlopp, who was previously finance vice president for Fresh Del Monte Produce in the Philippines and is also a former executive at Maui Land & Pineapple Co.
Shares of Cyanotech stock closed Wednesday at $3.15. Over the last 52 weeks, shares have closed between $3 on Jan. 3 and $5.63 on March 5.