Cyanotech Corp (CYAN) saw its loss widen to $0.35 million, or $0.06 a share for the quarter ended Dec. 31, 2016. In the previous year period, the company reported a loss of $0.25 million, or $0.04 a share.
Revenue during the quarter went up marginally by 0.94 percent to $7.60 million from $7.53 million in the previous year period. Gross margin for the quarter contracted 337 basis points over the previous year period to 37.57 percent. Operating margin for the quarter stood at negative 2.27 percent as compared to a positive 3.93 percent for the previous year period.
Operating loss for the quarter was $0.17 million, compared with an operating income of $0.30 million in the previous year period.
Commenting on the third quarter results (changes shown vs. the third quarter of fiscal 2016), Gerry Cysewski, Ph.D., Cyanotech's president and chief executive officer, noted: "Our results continue to reflect the strategic focus on our own branded, packaged products sold through retail and online channels, and improving our margins. Net sales were driven by a 4.3% increase in sales of our packaged products offset by a 15.5% decrease in sales of our bulk products. Sales of our BioAstin® packaged products were up 10%, driven by our Costco expansion and higher demand from international customers. Packaged Hawaiian Spirulina Pacifica® sales were down 7% due to lower volume resulting from a reduction in the level of discounts we offer as we transition to higher margin channels."
Working capital declines
Cyanotech Corp has witnessed a decline in the working capital over the last year. It stood at $6.39 million as at Dec. 31, 2016, down 13.88 percent or $1.03 million from $7.42 million on Dec. 31, 2015. Current ratio was at 2.02 as on Dec. 31, 2016, down from 2.25 on Dec. 31, 2015.
Cash conversion cycle (CCC) has decreased to 42 days for the quarter from 103 days for the last year period. Days sales outstanding went down to 40 days for the quarter compared with 44 days for the same period last year.
Days inventory outstanding has decreased to 74 days for the quarter compared with 140 days for the previous year period. At the same time, days payable outstanding went down to 73 days for the quarter from 82 for the same period last year.
Debt comes down marginally
Cyanotech Corp has recorded a decline in total debt over the last one year. It stood at $7.62 million as on Dec. 31, 2016, down 1.68 percent or $0.13 million from $7.76 million on Dec. 31, 2015. Total debt was 25.66 percent of total assets as on Dec. 31, 2016, compared with 22.22 percent on Dec. 31, 2015. Debt to equity ratio was at 0.45 as on Dec. 31, 2016, up from 0.36 as on Dec. 31, 2015.
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