Q2 2025 Cyanotech Corp Earnings Call
Mr President and Chief Executive Officer of Sinopec.
Speaker Change: Joining me on the call today is Jennifer Robinson, our Chief Financial Officer, I will turn the call over to Jennifer to provide a forward looking statement.
Jennifer Robinson: 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.
Speaker Change: Our results to differ are listed in our publicly filed documents for additional information. We encourage you to review our 10-Q in fiscal year 'twenty 'twenty. Four 10-K report filed with the Securities and Exchange Commission I will turn it back to Matt for comments on the quarter Matt.
Speaker Change: In prior quarters, our inventory levels were reduced to just in time levels to manage cash flow and strong sales in the first quarter of fiscal 2025 decreased inventory. However, mid quarter financing allowed us to start restocking increasing work in progress inventory by $1 9 million even though.
Speaker Change: Goods were still down by $1 5 million bulk inventory, which has a shorter production time helped drive a 39% increase in sales and revenue from contracted extraction grew by 156%, however, packaged goods, which take longer to restock saw a 21% decrease due to stock shortages and timing issue.
Speaker Change: These contributing to an overall, 8% drop in total sales for the quarter for the first half of the year sales were up 2%.
Speaker Change: Our progress with packaged goods has been slower than expected, we're working quickly to replenish stock and continue promoting our algae based products farmed in Hawaii pristine waters.
Turning over to Jennifer to discuss the financial results Jennifer.
Jennifer Robinson: Thank you, Matt and good evening, everyone key financial results for the second quarter total net sales for the second quarter of fiscal 2025, or $5 8 million compared to $6 4 million for the second quarter of fiscal 2024 total sales revenue decreased by 528000 or negative <unk>.
Jennifer Robinson: Eight 3% from the prior year.
Jennifer Robinson: Gross profit for the second quarter of fiscal 2025 was $148 million with the gross profit margin of 25, 3% compared to gross profit of $2 million and gross profit margin of 32, 8% in the second quarter of fiscal 2024 and seven 5%.
Point decrease due to high demand in our bulk products is not mentioned previously.
Jennifer Robinson: Operating loss for the second quarter was 975000 compared to operating loss of 632000 in the second quarter of fiscal 2024 and increased loss of 343000 <unk>.
Jennifer Robinson: Net loss for the current quarter was 1.15 million or <unk> six per diluted share compared to a net loss of <unk> 8 million or <unk> three per diluted share in the prior year.
Jennifer Robinson: The company had cash of $780000 and working capital of $550000 compared to $720000 and $200000, respectively. As of June 30th 2020 for.
Jennifer Robinson: The increase in working capital is due to higher inventories lower accounts payable and an amendment to a short term loans maturity date, resulting in a reclassification of $1 million of short term debt to long term debt.
Jennifer Robinson: I will hand, the call back to Matt for concluding comments Matt.
Speaker Change: We had a few questions come in that we were able to answer.
Speaker Change: Number one there was a significant drop in gross profit margin from 32, 8% to 25, 3% does this reflect higher cost or lowering sales prices for boats.
Speaker Change: The drop in gross profit margin was primarily driven by product mix due to the inventory challenges we've talked about a higher percentage of our sales. This quarter were in bulk which have lower profit margins. We have not made any recent changes to our selling prices.
Speaker Change: Number two packaged goods sales fell by 21% due to stock shortages was the low finished goods stock caused by ongoing supply chain issues or production issues were.
We are not experiencing any production issues. The low inventory was driven by delays that were beyond our control at our co manufacturers.
Speaker Change: Yes.
Speaker Change: Thank you.
Speaker Change: Sure.