Cyanotech Corp. (CYAN, Financial) filed Quarterly Report for the period ended 2010-12-31.
Cyanotech Corp. has a market cap of $16.9 million; its shares were traded at around $2.83 with a P/E ratio of 13 and P/S ratio of 1.1. Hedge Fund Gurus that owns CYAN: Jim Simons of Renaissance Technologies LLC.
Cash and cash equivalents decreased $88,000 or 11% to $729,000 at December 31, 2010, from $817,000 at March 31, 2010. Cash provided by operating activities of $253,000 decreased $782,000 from the same nine month period of last fiscal year. The decrease is due to the decrease in net income of $682,000, plus the decrease of non-cash expenses of $135,000 and the net changes in current assets and liabilities providing cash of $35,000 over the same nine month period of last fiscal year. The net change in non-cash expenses was mainly due to reduced stock option compensation expense. Net cash used in investing activities decreased by $608,000 over the same nine month period of last fiscal year mainly due to the return of restricted cash in the amount of $250,000 and $358,000 decrease in investment in capital projects.
As of December 31, 2010, our accounts receivable, net increased $596,000 to $2,660,000 from $2,064,000 as of March 31, 2010. The increase in accounts receivable is primarily the result of the timing of sales for the quarter and some customers stretching out their terms at calendar year end. Management believes that its accounts receivable are collectible, net of the allowance for doubtful accounts of $10,000, at December 31, 2010.
Cash flows used in investing activities reflect capital expenditures which totaled $401,000 during the first nine months of fiscal 2011 compared to $759,000 one year ago. Cash flows used in financing activities are attributable to debt payments during that period which were $375,000 and $462,000 for the first nine months of fiscal 2011 and 2010, respectively, offset by proceeds from stock option exercises of $185,000 for the first nine months of 2011.
At December 31, 2010, our working capital was $5,944,000, an increase of $1,002,000 compared to $4,942,000 at March 31, 2010. The increase in working capital is primarily due to the increase in inventory and receivables, and reduction of liabilities. Cash and cash equivalents at December 31, 2010 totaled $729,000, a decrease of $88,000 from $817,000 at March 31, 2010.
We have a line of credit agreement with First Hawaiian Bank in the amount of $350,000 for a term of one year. The amount of the line was increased from $150,000 on March 25, 2010, the date that the line of credit agreement was renewed. The obligation is secured by the Companys U.S. accounts receivable and bears a variable interest rate based on prime, (3.25% at December 31, 2010), plus 2%. The outstanding balance as of December 31, 2010 and March 31, 2010 was $0 and $150,000, respectively. The credit agreement requires the Company to meet certain financial covenants. The Company was in compliance with these financial covenants at December 31, 2010. The line of credit balance of $150,000 was paid in full on October 7, 2010.
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Cyanotech Corp. has a market cap of $16.9 million; its shares were traded at around $2.83 with a P/E ratio of 13 and P/S ratio of 1.1. Hedge Fund Gurus that owns CYAN: Jim Simons of Renaissance Technologies LLC.
Highlight of Business Operations:
Gross profit, derived from net sales less the cost of product sales, includes the cost of materials, direct labor, manufacturing overhead and depreciation. Gross profit for the three months ended December 31, 2010 and 2009 was $1,232,000 and $1,750,000, respectively. The decrease of $518,000 is primarily the result of lower production resulting in increased cost of sales of $360,000 and an increase in the inventory reserve of $85,000. Gross profit margin, as a percentage of sales, was 31% for the three months ended December 31, 2010, compared to 44% for the comparable period in the prior year.Cash and cash equivalents decreased $88,000 or 11% to $729,000 at December 31, 2010, from $817,000 at March 31, 2010. Cash provided by operating activities of $253,000 decreased $782,000 from the same nine month period of last fiscal year. The decrease is due to the decrease in net income of $682,000, plus the decrease of non-cash expenses of $135,000 and the net changes in current assets and liabilities providing cash of $35,000 over the same nine month period of last fiscal year. The net change in non-cash expenses was mainly due to reduced stock option compensation expense. Net cash used in investing activities decreased by $608,000 over the same nine month period of last fiscal year mainly due to the return of restricted cash in the amount of $250,000 and $358,000 decrease in investment in capital projects.
As of December 31, 2010, our accounts receivable, net increased $596,000 to $2,660,000 from $2,064,000 as of March 31, 2010. The increase in accounts receivable is primarily the result of the timing of sales for the quarter and some customers stretching out their terms at calendar year end. Management believes that its accounts receivable are collectible, net of the allowance for doubtful accounts of $10,000, at December 31, 2010.
Cash flows used in investing activities reflect capital expenditures which totaled $401,000 during the first nine months of fiscal 2011 compared to $759,000 one year ago. Cash flows used in financing activities are attributable to debt payments during that period which were $375,000 and $462,000 for the first nine months of fiscal 2011 and 2010, respectively, offset by proceeds from stock option exercises of $185,000 for the first nine months of 2011.
At December 31, 2010, our working capital was $5,944,000, an increase of $1,002,000 compared to $4,942,000 at March 31, 2010. The increase in working capital is primarily due to the increase in inventory and receivables, and reduction of liabilities. Cash and cash equivalents at December 31, 2010 totaled $729,000, a decrease of $88,000 from $817,000 at March 31, 2010.
We have a line of credit agreement with First Hawaiian Bank in the amount of $350,000 for a term of one year. The amount of the line was increased from $150,000 on March 25, 2010, the date that the line of credit agreement was renewed. The obligation is secured by the Companys U.S. accounts receivable and bears a variable interest rate based on prime, (3.25% at December 31, 2010), plus 2%. The outstanding balance as of December 31, 2010 and March 31, 2010 was $0 and $150,000, respectively. The credit agreement requires the Company to meet certain financial covenants. The Company was in compliance with these financial covenants at December 31, 2010. The line of credit balance of $150,000 was paid in full on October 7, 2010.
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