Cyanotech Reports Financial Results for the Third Quarter and First Nine Months of Fiscal 2024

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KAILUA KONA, Hawaii, February 08, 2024--(BUSINESS WIRE)--Cyanotech Corporation (Nasdaq Capital Market: CYAN), a world leader in microalgae-based, high-value nutrition and health dietary supplement products, announced financial results for the third quarter and first nine months of fiscal year 2024, ended December 31, 2023.

Commenting on the third quarter fiscal year 2024 results, Cyanotech’s President and Chief Executive Officer, Matthew K. Custer, said:

"The macroeconomic environment led to lower sales across the portfolio on a year-to-date basis, being driven particularly by Spirulina bulk sales. Industry data shows consumers are not pulling back from dietary supplements, but they have begun trading down to private label brands to save on costs. The market for bulk material is increasingly price sensitive with many companies sourcing lower priced international ingredients."

"In the face of these challenges, we have revitalized our sales and marketing team, starting with the addition of a Chief Commercial Officer this past August, and strengthening the sales team. We have focused on enhancing our customer messaging on our premium quality and competitive advantages. Our naturally farmed microalgae from our location in Hawaii with pristine waters and natural sourcing practices aligns with rising consumer objectives and growing demand for responsible, sustainable and U.S. grown products."

Third Quarter Fiscal 2024

Cyanotech reported net sales of $5,582,000 for the third quarter of fiscal 2024 compared to $5,891,000 for the third quarter of fiscal 2023, a decrease of 5.2%. Gross profit was $1,649,000, with gross profit margin of 29.5%, compared to gross profit of $1,764,000, with gross profit margin of 29.9%. Operating loss for the third quarter of fiscal 2024 was $848,000 compared to operating loss of $404,000 in the same period of the prior year. Net loss for the current fiscal quarter was $1,020,000, or $0.16 per diluted share, compared to net loss of $598,000, or $0.10 per diluted share, for the same period of the prior year.

First Nine Months of Fiscal 2024

Cyanotech reported net sales of $17,101,000 for the first nine months of fiscal 2024 compared to $17,786,000 for the same period in fiscal 2023, a decrease of 3.9%. Gross profit was $5,270,000, with gross profit margin of 30.8%, compared to gross profit of $5,872,000, with gross profit margin of 33.0%. Operating loss for the first nine months of fiscal 2024 was $2,689,000 compared to operating loss of $1,666,000 in the same period of the prior year. Net loss for the first nine months of fiscal 2024 was $3,186,000, or $0.50 per diluted share, compared to net loss of $2,010,000, or $0.32 per diluted share, for the same period of the prior year.