yanotech Corporation, a Kailua Kona, Hawaii-based leader in high-value nutrition and health products made from algae, has announced financial results for the first quarter of fiscal year 2020, ended June 30, 2019.
The company reported net sales of $8,071,000 for the first quarter of fiscal 2020 compared to $7,145,000 for the first quarter of fiscal 2019. Gross profit was $3,675,000, with gross profit margin of 45.5%, compared to gross profit of $1,836,000 and gross profit margin of 25.7%. Operating income was $49,000 compared to operating loss of ($1,167,000). Net loss was ($133,000) or ($0.02) per diluted share, compared to net loss of ($1,275,000) or ($0.22) per diluted share.
Commenting on the first quarter fiscal 2020 results (changes shown vs. the first quarter of fiscal 2019), Cyanotech’s Chief Executive Officer, Gerald R. Cysewski, Ph.D., said, “We are pleased that our algae production stabilized and returned to more normal levels in the first quarter, as well as overall sales. Absent what we expect to be mostly non-recurring charges related to severance and associated payments tied to personnel organization, our first quarter pre-tax income would also have normalized at approximately $400,000.”
Cyanotech’s Vice President Finance and CFO, Brian Orlopp, added, “Net sales increase of 13.0% for the current quarter compared to the same period last year was primarily driven by a 76% increase in spirulina sales, as well as the contribution of third-party contract extraction services. Spirulina sales last year were significantly affected by production issues and the re-inoculation process. Since late last year, productivity levels have returned to normal levels, allowing us to fulfill both bulk and Nutrex consumer product orders. These increases were partially offset by a 10.7% decrease in Astaxanthin sales, primarily due to a reduction in sales to one of our major customers.”
“Gross profit as a percent of net sales increased by 19.8 percentage points compared to the same period last year, primarily due to improvements in production for both spirulina and astaxanthin.”
“Operating expenses increased $0.6 million for the current quarter compared to the same period last year, primarily due to increased general and administrative expenses related to personnel.”