Cyanotech Corporation (NASDAQ: CYAN) reported fourth-quarter net sales of .2 million in fiscal 2019 compared to $34.1 million in 2018.
The company reported gross profit was $10.4 million with gross profit margin of 34.7%, compared to gross profit of $13.3 million and gross profit margin of 39.2%.
“The net loss this year was due substantially from forced water conservation efforts causing re-inoculation of our spirulina ponds, and errors in cultivation judgement and execution,” explains Gerald Cysewski, CEO of Cyanotech. “This left the company well short of spirulina inventory to meet customer demand in certain channels. We can report that spirulina production has now stabilized, and subsequent to our fiscal year end, customer orders have returned to a more normal pattern."
Cyanotech’s CFO Brian Orlopp explained the net sales decrease of 11.5% in 2019 compared with 2018 was driven by a 9.2% decrease in sales of the packaged Nutrex Hawaii products, and a 30.2% decrease in bulk sales.
Shares traded down 5.3% at $2.93 at time of publication.
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