Cyanotech ( Nasdaq - CYAN ) -- New Capacity in Production
Cyanotech (CYAN $7.65) appears on track to produce excellent on target Q1 (June) results. The company still hasn't reported its March period figures. Those probably were down sequentially due to seasonal factors. Less sunlight translates into less output. But volume almost certainly has jumped in the current period. Cyanotech's capacity expansion began production in April. Sunshine has abundant and strong the past two months, as well. Demand for astaxanthin remains vibrant, moreover. The transition from lower margin bulk sales to consumer products is reinforcing the uptrend in margins, helping income advance faster than sales. Our estimates are unchanged.