Cyanotech(CYAN) - 2019 Q3 - Earnings Call Transcript

Financial Data and Key Metrics Changes - The company achieved record sales for the third quarter, exceeding $10 million in net sales, an increase of $894,000 or 9.8% compared to the prior year [3][4] - Gross profit was $4.12 million, down $124,000 from the same quarter last year, with gross profit as a percentage of sales decreasing to 41% from 46.3% [4][5] - Net income for the quarter was $288,000, a significant decrease from $1.1 million in the same quarter last year, with diluted earnings per share dropping to $0.05 from $0.19 [5] Business Line Data and Key Metrics Changes - Spirulina sales increased by $658,000, representing a 21.3% increase, while astaxanthin sales rose by $236,000 or 9% compared to the same quarter last year [4] - Astaxanthin sales included a $1.2 million increase in sales to Amazon and Costco, but were partially offset by a $700,000 decrease in international sales [4] Market Data and Key Metrics Changes - The company faced challenges in production due to the unpredictable nature of agriculture, impacting overall profitability [6] Company Strategy and Development Direction - The company aims to improve profit margins and profitability while enhancing cultivation techniques and technologies [6] - There is a commitment to deepening brand awareness in the consumer market and exploring new revenue opportunities, including extraction services for other companies [6] Management's Comments on Operating Environment and Future Outlook - Management expressed satisfaction with the record sales numbers but noted dissatisfaction with current profit margins [3] - The company is determined to improve supply stability to support its farm proposition and is focused on long-term growth opportunities [6] Other Important Information - Operating expenses increased by $471,000 primarily due to higher advertising and promotional costs, while general and administrative expenses remained consistent with the prior year [4] Q&A Session Summary Question: No questions were received from shareholders during the call - Management concluded the call with remarks on sales performance and future strategies without addressing specific shareholder inquiries [6]