Cyanotech Corp. (CYAN, Financial) filed Quarterly Report for the period ended 2010-09-30.
Cyanotech Corp. has a market cap of $12.9 million; its shares were traded at around $2.4 with a P/E ratio of 9.6 and P/S ratio of 0.8. CYAN is in the portfolios of Jim Simons of Renaissance Technologies LLC.
Operating expenses for the six months ended September 30, 2010 were $2,328,000, a decrease of $93,000 or 4% from the comparable prior year period. General and administrative expense decreased $268,000 or 16%. The decrease is primarily the result of reduced bonus, stock option and other compensation expenses associated with not having a permanent CEO. Sales and marketing expense increased by $152,000 or 24% as a result of the initiation of broker training and new marketing programs for packaged products to expand consumer awareness. Research and development expense increased $23,000 or 19% from the comparable prior period, primarily due to increased employee compensation and lab supplies. While it is our goal to contain discretionary operating spending, it may become necessary for us to selectively increase spending in some or all of these areas to remain competitive and to comply with regulatory requirements.
Cash and cash equivalents remained fairly consistent with levels at March 31, 2010 decreasing $34,000, or 4%, to $783,000 at September 30, 2010. Cash provided by operating activities of $14,000 decreased $924,000 from the same six month period of last fiscal year. The decrease is due to the decrease in net income of $87,000, plus the decrease of non-cash expenses of $90,000 and the net changes in current assets and liabilities using cash of $747,000 over the same six month period of last fiscal year. The net change in current assets and liabilities was largely due to increased inventory and reduced payables and accrued expenses. Net cash used in investing activities decreased by $452,000 over the same six month period of last fiscal year mainly due to the return of restricted cash in the amount of $250,000 and $202,000 decrease in investment in capital projects.
As of September 30, 2010, our accounts receivable, net increased $66,000 to $2,130,000 from $2,064,000 as of March 31, 2010. The increase in accounts receivable is primarily the result of some extended payment terms on sales for the quarter. Management believes that its accounts receivable are collectible, net of the allowance for doubtful accounts of $10,000, at September 30, 2010.
Cash flows used in investing activities reflect capital expenditures which totaled $307,000 during the first six months of fiscal 2011 compared to $509,000 one year ago. Cash flows used in financing activities are attributable to debt payments during that period which were $176,000 and $306,000 for the first six months of fiscal 2011 and 2010, respectively.
At September 30, 2010, our working capital was $5,950,000, an increase of $1,008,000 compared to $4,942,000 at March 31, 2010. The increase in working capital is primarily due to the increase in inventory and reduction of liabilities. Cash and cash equivalents at September 30, 2010 totaled $783,000, a decrease of $34,000 from $817,000 at March 31, 2010.
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Cyanotech Corp. has a market cap of $12.9 million; its shares were traded at around $2.4 with a P/E ratio of 9.6 and P/S ratio of 0.8. CYAN is in the portfolios of Jim Simons of Renaissance Technologies LLC.
Highlight of Business Operations:
In summary, we reported net income of $526,000 or $0.10 per diluted share for the three months ended September 30, 2010 compared to net income of $599,000 or $0.11 per diluted share for the three months ended September 30, 2009. The decrease is the result of reduced sales, reduced gross profit margin percentage and increase in our inventory reserve.Operating expenses for the six months ended September 30, 2010 were $2,328,000, a decrease of $93,000 or 4% from the comparable prior year period. General and administrative expense decreased $268,000 or 16%. The decrease is primarily the result of reduced bonus, stock option and other compensation expenses associated with not having a permanent CEO. Sales and marketing expense increased by $152,000 or 24% as a result of the initiation of broker training and new marketing programs for packaged products to expand consumer awareness. Research and development expense increased $23,000 or 19% from the comparable prior period, primarily due to increased employee compensation and lab supplies. While it is our goal to contain discretionary operating spending, it may become necessary for us to selectively increase spending in some or all of these areas to remain competitive and to comply with regulatory requirements.
Cash and cash equivalents remained fairly consistent with levels at March 31, 2010 decreasing $34,000, or 4%, to $783,000 at September 30, 2010. Cash provided by operating activities of $14,000 decreased $924,000 from the same six month period of last fiscal year. The decrease is due to the decrease in net income of $87,000, plus the decrease of non-cash expenses of $90,000 and the net changes in current assets and liabilities using cash of $747,000 over the same six month period of last fiscal year. The net change in current assets and liabilities was largely due to increased inventory and reduced payables and accrued expenses. Net cash used in investing activities decreased by $452,000 over the same six month period of last fiscal year mainly due to the return of restricted cash in the amount of $250,000 and $202,000 decrease in investment in capital projects.
As of September 30, 2010, our accounts receivable, net increased $66,000 to $2,130,000 from $2,064,000 as of March 31, 2010. The increase in accounts receivable is primarily the result of some extended payment terms on sales for the quarter. Management believes that its accounts receivable are collectible, net of the allowance for doubtful accounts of $10,000, at September 30, 2010.
Cash flows used in investing activities reflect capital expenditures which totaled $307,000 during the first six months of fiscal 2011 compared to $509,000 one year ago. Cash flows used in financing activities are attributable to debt payments during that period which were $176,000 and $306,000 for the first six months of fiscal 2011 and 2010, respectively.
At September 30, 2010, our working capital was $5,950,000, an increase of $1,008,000 compared to $4,942,000 at March 31, 2010. The increase in working capital is primarily due to the increase in inventory and reduction of liabilities. Cash and cash equivalents at September 30, 2010 totaled $783,000, a decrease of $34,000 from $817,000 at March 31, 2010.
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