Hawaii island-based microalgae producer Cyanotech Corp. achieved a $1.2 million improvement in its fiscal first-quarter finances after correcting production problems and boosting sales, but still suffered a loss.

The company reported Tuesday losing $133,000 in the three months ended June 30. That compared with a $1.3 million loss in the same quarter last year.

Cyanotech, which makes nutritional supplements from microalgae, said sales in the recent quarter rose to $8.1 million from $7.2 million a year earlier.

The revenue gain was largely due to sales of its spirulina product soaring 76%. Spirulina sales last year were depressed because of production issues that the company said were corrected late last year.

“We are pleased that our algae production stabilized and returned to more normal levels in the first quarter, as well as overall sales,” Gerald Cysewski, company CEO, said in a statement.

Cyanotech noted that sales for another product called astaxanthin declined 11% in relation to one major customer, and that a $600,000 increase in operating expenses for the recent quarter included a $500,000 severance payment to a former executive.

Shares of Cyanotech stock closed up 6 cents at $2.56 Wednesday. The 52-week range for the stock was between $4.05 on March 1 and $2.43 on Aug. 2.

First-quarter loss

$133,000

Year-earlier loss

$1.3 million