Cyanotech Corporation announced its financial results for the fiscal year ended March 31, 2025, reporting a 5.0% increase in net sales to $24.215 million, up from $23.071 million in fiscal 2024. Gross profit improved to $6.876 million, resulting in a gross profit margin of 28.4% for FY25, compared to 25.8% in the prior year.
The company significantly reduced its operating loss by 45%, reporting $2.508 million in FY25 compared to $4.592 million in FY24. Despite these operational improvements, Cyanotech recorded a net loss of $3.203 million, or $0.45 loss per share, for the fiscal year.
For the fourth quarter of fiscal 2025, net sales increased by 5.5% to $6.300 million compared to $5.970 million in the same period last year. Gross profit margin for the quarter was 27.7%, a substantial increase from 11.3% in the fourth quarter of fiscal 2024.
The company's President and CEO, Matthew K. Custer, highlighted the progress in revenue growth, gross margin improvement, and operating loss reduction. However, the company maintains a cautious outlook due to economic uncertainty, shifting demand, and potential new tariffs.
The company's financial health remains precarious, marked by recurring operating losses and negative cash flows from operations. These conditions, coupled with non-compliance with debt covenants, have led the company to conclude that there is substantial doubt about its ability to continue as a going concern.
Cyanotech relies heavily on a related-party revolving credit facility for liquidity and has required waivers for non-compliance with debt covenants on its bank loans. The company's operating plan anticipates generating a significant portion of necessary cash flows from operations but acknowledges a remaining need for capital raising.
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