Cyanotech Corp. (CYAN, Financial) filed Quarterly Report for the period ended 2009-09-30.
CYANOTECH CORP. develops and commercializes natural products from microalgae. Co. is currently producing microalgae products for the nutritional supplement and immunological diagnostics markets and is also developing microalgae-based products for the aquaculture feed/pigments, biopesticide and food coloring markets. Microalgae are a diverse group of over 30,000 species of microscopic plants which have a wide range of physiological and biochemical characteristics and naturally contain high levels of nutrients. Cyanotech Corp. has a market cap of $11.9 million; its shares were traded at around $2.28 with a P/E ratio of 9.1 and P/S ratio of 0.9.
Operating expenses for the six months ended September 30, 2009 were $2,421,000, an increase of $236,000 or 11% from the comparable prior year period. Sales and marketing expense increased by $102,000 or 20% as a result of reinstituting marketing programs to expand consumer awareness. General and administrative expense increased $101,000 or 6% due to increased compensation expenses offset by reductions in contractual services related to public company reporting. Research and development expense increased $33,000 or 37% from the comparable prior period, due to initiation of a product use research study being conducted at a California university. While it is our goal to contain discretionary operating spending, it may become necessary for the Company to selectively increase spending in some or all of these areas to remain competitive and to comply with regulatory requirements.
Cash and cash equivalents increased $123,000 or 13% to $1,100,000 at September 30, 2009, from $977,000 at March 31, 2009. Cash provided by operating activities of $938,000 increased $609,000 over the same six month period of last fiscal year. The increase is due to the increase in net income of $578,000 and an increase of non-cash expenses of $115,000 over the same six month period of last fiscal year, offset by a net cash usage due to changes in current assets and liabilities.
As of September 30, 2009, the Companys net accounts receivable increased $45,000 to $1,830,000 from $1,785,000 as of March 31, 2009. The increase in accounts receivable is primarily the result of the timing of sales for the quarter. Management believes that its accounts receivable are collectible, net of the allowance for doubtful accounts of $11,000 at September 30, 2009.
At September 30, 2009, the Companys working capital was $4,648,000, an increase of $756,000 compared to $3,892,000 at March 31, 2009. Cash and cash equivalents at September 30, 2009 totaled $1,100,000 an increase of $123,000 from $977,000 at March 31, 2009.
The Company has two Term Loan Agreements (Term Loans) with a lender. These provided up to $4.6 million in combined credit facilities which are secured by substantially all the assets of the Company. The outstanding combined balance under the Term Loans as of September 30, 2009 is approximately $1,198,000. The Term Loans have maturity dates of May 1, 2010 as to $318,000 and March 1, 2015 as to $880,000 and are payable in equal monthly principal payments plus interest totaling approximately $55,000.
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CYANOTECH CORP. develops and commercializes natural products from microalgae. Co. is currently producing microalgae products for the nutritional supplement and immunological diagnostics markets and is also developing microalgae-based products for the aquaculture feed/pigments, biopesticide and food coloring markets. Microalgae are a diverse group of over 30,000 species of microscopic plants which have a wide range of physiological and biochemical characteristics and naturally contain high levels of nutrients. Cyanotech Corp. has a market cap of $11.9 million; its shares were traded at around $2.28 with a P/E ratio of 9.1 and P/S ratio of 0.9.
Highlight of Business Operations:
Operating expenses for the three months ended September 30, 2009 were 29% of sales or $1,123,000, compared to 36% of sales or $1,173,000 for the three months ended September 30, 2008. The 4% decrease in operating expenses in the three months ended September 30, 2009 as compared with the three months ended September 30, 2008, was primarily the result of reduced General and administrative expenses incurred. General and administrative expense for the second quarter fiscal 2010 decreased by $86,000 from the second quarter of fiscal 2009 primarily due to reductions in service costs associated with the Companys proxy filing and annual meeting. Research and development expense for the second quarter of fiscal 2010 decreased by $11,000 or 20% as a result of the temporary allocation of R&D resources to facilitate increased production from the second quarter of 2009. Sales and marketing expense increased $48,000 or 19% as a result of reinstituting marketing programs to expand consumer awareness from the second quarter of 2009.Operating expenses for the six months ended September 30, 2009 were $2,421,000, an increase of $236,000 or 11% from the comparable prior year period. Sales and marketing expense increased by $102,000 or 20% as a result of reinstituting marketing programs to expand consumer awareness. General and administrative expense increased $101,000 or 6% due to increased compensation expenses offset by reductions in contractual services related to public company reporting. Research and development expense increased $33,000 or 37% from the comparable prior period, due to initiation of a product use research study being conducted at a California university. While it is our goal to contain discretionary operating spending, it may become necessary for the Company to selectively increase spending in some or all of these areas to remain competitive and to comply with regulatory requirements.
Cash and cash equivalents increased $123,000 or 13% to $1,100,000 at September 30, 2009, from $977,000 at March 31, 2009. Cash provided by operating activities of $938,000 increased $609,000 over the same six month period of last fiscal year. The increase is due to the increase in net income of $578,000 and an increase of non-cash expenses of $115,000 over the same six month period of last fiscal year, offset by a net cash usage due to changes in current assets and liabilities.
As of September 30, 2009, the Companys net accounts receivable increased $45,000 to $1,830,000 from $1,785,000 as of March 31, 2009. The increase in accounts receivable is primarily the result of the timing of sales for the quarter. Management believes that its accounts receivable are collectible, net of the allowance for doubtful accounts of $11,000 at September 30, 2009.
At September 30, 2009, the Companys working capital was $4,648,000, an increase of $756,000 compared to $3,892,000 at March 31, 2009. Cash and cash equivalents at September 30, 2009 totaled $1,100,000 an increase of $123,000 from $977,000 at March 31, 2009.
The Company has two Term Loan Agreements (Term Loans) with a lender. These provided up to $4.6 million in combined credit facilities which are secured by substantially all the assets of the Company. The outstanding combined balance under the Term Loans as of September 30, 2009 is approximately $1,198,000. The Term Loans have maturity dates of May 1, 2010 as to $318,000 and March 1, 2015 as to $880,000 and are payable in equal monthly principal payments plus interest totaling approximately $55,000.
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