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Trouble growing microalgae pulled down earnings of Hawaii biotech firm Cyanotech Corp. for a third consecutive quarter.
The company announced Monday that it lost $1.1 million in the July-September period, representing its fiscal second quarter, compared with a $475,000 profit in the same period last year.
Cyanotech, which produces spirulina microalgae largely for nutritional supplement products, ceased production from April to mid-May after unusually cool, cloudy and rainy weather led to abnormally small algae that was difficult to harvest.
The trouble constrained sales and contributed to a $1 million loss in the quarter ended March 31 followed by a $1.3 million loss in the quarter ended June 30. Company CEO Mawae Morton said spirulina production has returned to “mostly normal” levels and therefore should not have significant negative impacts on future quarters.
In the most recent quarter, sales dropped to $7 million from $8.1 million a year earlier. Because less spirulina was produced, production costs were $600,000 higher, the company said.
Shares of Cyanotech stock rose to close at $3.50 on Monday after the earnings announcement from $3.41 on Friday.
SECOND-QUARTER LOSS
$1.1 million
YEAR-EARLIER NET
$475,000
