Cyanotech Corporation (CYAN) saw its loss narrow to $1.22 million, or $0.21 a share for the year ended Mar. 31, 2017. In the previous year period, the company reported a loss of $4.40 million, or $0.79 a share.
Revenue during the year went up marginally by 0.63 percent to $32.04 million from $31.84 million in the previous year. Gross margin for the year expanded 88 basis points over the previous year to 38.15 percent. Operating margin for the year stood at negative 2.13 percent as compared to a negative 2.47 percent for the previous year.
Operating loss for the year was $0.68 million, compared with an operating loss of $0.78 million in the previous year.
Commenting on the fiscal 2017 results (changes shown vs. fiscal 2016), Gerry Cysewski, Ph.D., Cyanotech's president and chief executive officer, noted: "While we suffered from high legal costs this year, our results reflect positive momentum in the areas where we are focused strategically. Additionally, we instituted production efficiencies and a restructuring that should generate cost savings in the next fiscal year. "Operating expenses increased moderately, largely for General and Administrative expenses due to an increase in legal fees of $1.2 million related to a shareholder lawsuit. The Company is no longer a party to the shareholder lawsuit."
Working capital declines
Cyanotech Corporation has witnessed a decline in the working capital over the last year. It stood at $6.20 million as at Mar. 31, 2017, down 5.05 percent or $0.33 million from $6.53 million on Mar. 31, 2016. Current ratio was at 2.03 as on Mar. 31, 2017, down from 2.07 on Mar. 31, 2016.
Cash conversion cycle (CCC) has decreased to 33 days for the year from 102 days for the last year. Days sales outstanding went down to 30 days for the year compared with 35 days for the same period last year.
Days inventory outstanding has decreased to 73 days for the year compared with 139 days for the previous year period. At the same time, days payable outstanding went down to 70 days for the year from 72 for the same period last year.
Debt comes down marginally
Cyanotech Corporation has recorded a decline in total debt over the last one year. It stood at $7.48 million as on Mar. 31, 2017, down 2.41 percent or $0.19 million from $7.67 million on Mar. 31, 2016. Total debt was 25.66 percent of total assets as on Mar. 31, 2017, compared with 24.62 percent on Mar. 31, 2016. Debt to equity ratio was at 0.45 as on Mar. 31, 2017, up from 0.43 as on Mar. 31, 2016.
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