Cyanotech Corporation (CYAN) Earnings Call Transcript & Summary

Aloha from Kona, Hawaii. Thank you for joining us today to report Cyanotech's Third Quarter Fiscal Year 2025 Earnings Results. I am Matt Custer, President and Chief Executive Officer of Cyanotech. Joining me on the call today is Jennifer Rogerson, our Chief Financial Officer. I will turn the call over to Jennifer to provide our forward-looking statement.

Thanks Matt. Our discussion today may include forward-looking statements. We do not undertake any obligation to update forward-looking statements either as a result of new information, future events or otherwise. Our actual results may differ materially from what is described in these forward-looking statements. Some of the factors that may cause results to differ are listed in the publicly filed documents. For additional information, we encourage you to review our 10-Q and fiscal year 2024 10-K report filed with the Securities and Exchange Commission. I will turn it back to Matt for comments on the quarter. Matt?

I'm pleased by our continued progress in the third quarter with a 10.6% increase in net sales, building on the momentum that we established in the first half of the fiscal year. As we noted last quarter, our focus on inventory management and strategic restocking has allowed us to meet demand more effectively. The increase in our gross profit to 35.3% reflects the positive results of those efforts. While bulk sales are helping drive growth, addressing the slower growth of package sales remains a priority. We've reduced our operating losses compared to last year, however, we remain focused on navigating these challenges and proceeding cautiously as we enter the next quarter. Turning over to Jennifer to discuss the financial results. Jennifer?

Thank you, Matt, and good evening, everyone. Key financial results for the third quarter. Total net sales for the third quarter of fiscal 2025 were $6.2 million compared to $5.6 million for the third quarter of fiscal 2024. Total sales revenue increased by $590,000 or 10.6% from the prior year. Gross profit for the third quarter of fiscal 2025 was $2.18 million with a gross profit margin of 35.3% compared to a gross profit of $1.65 million and a gross profit margin of 29.5% in the third quarter of fiscal 2024. A 5.8 percentage point increase due to higher production volumes, as Matt mentioned previously. Operating loss for the third quarter was $50,000 compared to operating loss of $848,000 in the third quarter of fiscal 2024, a decreased loss of $798,000. Net loss for the current quarter was $224,000 or $0.03 per diluted share compared to net loss of $1.02 million or $0.16 per diluted share in the prior year. The company had cash of $359,000 and working capital of $602,000 compared to $780,000 and $550,000, respectively, as of September 30, 2024. The increase in working capital is due to higher inventories and higher accounts receivables. I will hand the call back to Matt for concluding comments. Matt?

We did not have any questions come in that we're able to answer. Aloha.