Cyanotech Reports Financial Results for the Fourth Quarter and Fiscal Year 2022

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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 fourth quarter and fiscal year 2022, which ended March 31, 2022.
 

Commenting on the fiscal year results (changes shown vs. fiscal 2021), Cyanotech’s Chief Executive Officer Emeritus and Chief Scientific Officer, Gerald R. Cysewski, Ph.D., said:

“Net sales increased to $36.0 million in the fiscal year, 11.2% over the prior year, with an improved gross profit as a result of lower cost of spirulina due to higher production volumes and astaxanthin as a result of production efficiencies. We generated $2.4 million in cash from operations, deleveraged the Balance Sheet by $1.7 million and invested over $1.0 million in capital expenditures.”

“Two new solar power systems were installed in our facility continuing Cyanotech’s commitment to renewable energy. In addition to the 791 metric tons of carbon dioxide (CO2) emissions we currently offset annually with our existing solar power system, the two new systems further reduce CO2 emissions by 163 metric tons per year.”

“After 39 years with Cyanotech, I have stepped down from my position at Cyanotech as Chief Executive Officer and as a member of the Board of Directors (‘Board’) effective June 16, 2022, to have more personal time in my latter years. My time at Cyanotech has been both challenging and very rewarding. I will assume the position of CEO Emeritus and remain as Chief Scientific Officer. I will be available for consultation on business strategy on an as needed basis. I want to sincerely thank shareholders and employees for their support throughout the years.”

“Matt Custer has been appointed as President and Chief Executive Officer and as a member of the Board effective June 16, 2022. Matt has been the President of the Company since May 2021. He is a very talented and insightful leader, and I am confident the company is in good hands.”

“I am honoured and humbled to lead the organization and thank Gerry for creating a legacy for all of us to continue to uphold,” commented Matt Custer, President and Chief Executive Officer.

Fiscal Year 2022

Cyanotech reported net sales of $35,968,000 for fiscal 2022 compared to $32,345,000 in fiscal 2021, an increase of 11.2%. Gross profit was $13,566,000, with gross profit margin of 37.7%, compared to gross profit of $11,117,000 and gross profit margin of 34.4%. Operating income was $2,574,000 compared to operating income of $84,000.

Net income was $2,154,000 or $0.35 per diluted share, compared to net income of $920,000 or $0.15 per diluted share. Net income in fiscal 2021 includes $1,389,000, including accrued interest of $8,000 for the forgiveness of the loan under the Paycheck Protection Program.

Fourth Quarter Fiscal 2022

Cyanotech reported net sales of $8,126,000 for the fourth quarter of fiscal year 2022 compared to $9,438,000 in the fourth quarter of fiscal 2021, a decrease of 13.9%. Gross profit was $2,894,000 with gross profit margin of 35.6%, compared to gross profit of $2,771,000 and gross profit margin of 29.4% in the fourth quarter of fiscal 2021. Operating income was $364,000 compared to operating loss of $24,000 in the fourth quarter of fiscal 2021. Net income was $277,000, or $0.04 per diluted share, compared to net loss of $200,000, or ($0.03) per diluted share in the fourth quarter of fiscal 2021.

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