Hawaii-based Cyanotech reported an increase of 18 per cent in net sales to $2.4 million for the fourth quarter to end of March due to stronger sales of its bulk products such as the natural astaxanthin BioAstin.
It also cut net losses for the quarter to $270,000, compared to $730,000 for the comparable period of the prior fiscal year. This includes non-cash expenses of approximately $180,000 representing $100,000 of write-off related to the discontinued infomercial advertising campaign and $80,000 of write-down related to a warehouse capital expenditure project.
Gross profit amounted to $831,000 compared to $340,000 for last year's fourth quarter, with a gross profit margin of 34 per cent. This improvement resulted primarily from increased efficiencies in production, said the company.
Overall for the fiscal year, Cyanotech recorded losses of $1.78, compared to a net loss of $2.599 for the prior fiscal year.
Cyanotech, which claims to be the world's largest commercial producer of natural astaxanthin from microalgae, said it is selling increasing volumes of its BioAstin to large cosmetic manufacturers, pharmaceutical companies offering branded nutraceuticals, direct marketing companies and natural food sector supplement makers, such as Twinlab and Rexall Sundown, who integrate natural astaxanthin into their nutraceutical and cosmetic formulations.
Further clinical trials are planned to continue to assess the benefits of BioAstin for Carpal Tunnel Syndrome (CTS) and as a systemic sunscreen.