Cyanotech & Solazyme – Financial Results
Cyanotech Corporation announced financial results for the first quarter of fiscal year 2013 and Solazyme Inc. announced financial results for the second quarter, both ended June 30, 2012.
First Quarter 2013
For the first quarter of fiscal 2013 compared to the first quarter of fiscal 2012, revenues were $6,506,000 compared to $5,950,000, an increase of 9%. Gross profit was $2,574,000, with gross profit margin of 39.6%, compared to gross profit of $2,104,000 and gross profit margin of 35.4%. Net income was $493,000 or $0.08 per diluted share, compared to net income of $486,000 or $0.09 per diluted share.
Commenting on the first quarter fiscal 2013 results, Brent Bailey, President and CEO, noted: “Although first quarter net sales growth companywide was a modest 9%, our packaged products increased 44% reflecting our new strategic marketing focus, driven by strong growth of 36% on the mainland, 55% in Hawaii, 49% in direct-to-consumer and 209% internationally. BioAstin and Hawaiian Spirulina Pacifica continue to be the #1 brands of astaxanthin and spirulina, respectively, in the United States natural products channel. In spite of significantly increased demand, bulk net sales declined 6% due to lower production in the fourth quarter of fiscal 2012. Bulk spirulina sales were down 9% while bulk astaxanthin dropped 5%.”
“The increase in first quarter operating expenses reflects the investment we are making in brand development, marketing and people with successful business-building track records in consumer packaged goods. We are confident that this investment strengthens our foundation for continued revenue growth, improved margins and resulting profit,” continued Bailey.
„During the quarter, we continued to execute on the commercialization of our technology, and we are proud to say that we have continued to meet our key milestones. Among our achievements this quarter, we broke ground on our first 100,000 MT facility in Brazil and successfully commissioned our integrated biorefinery in Peoria, both on schedule,“ said Jonathan Wolfson, CEO of Solazyme. „Our team remains focused on building out our renewable oil production capacity, working with industry leading partners to commercialize our tailored triglyceride oils, and continuing to demonstrate how our technology platform opens new market opportunities for our customers.“
Total revenue for the second quarter ended June 30, 2012 was $13.5 million compared with $7.4 million in the second quarter of 2011. Second quarter GAAP net loss attributable to Solazyme, Inc. common stockholders was $19.2 million, which compares with net loss attributable to common stockholders of $17.0 million in the prior year period. On a non-GAAP basis, the net loss attributable to Solazyme, Inc. common stockholders was $16.3 million for the second quarter of 2012, compared with net loss attributable to common stockholders of $10.0 million in the prior year quarter. A reconciliation of GAAP to non-GAAP results is included below.
„We have a strong balance sheet and all of our current projects are fully funded,“ said Tyler Painter, CFO of Solazyme. „Solazyme has been built on carefully managing every dollar we spend building our business and we will continue to focus on prudently deploying our capital to maximize future returns. Most importantly, we continue to create long-term stockholder value by executing on our commercialization plan and investing in our technology platform.“