Cyanotech ( Nasdaq - CYAN ) -- Production Rate Improves

Cyanotech (CYAN $5.00) appears on track to report reasonably good Q4 (March) results.  Production setbacks curtailed output earlier in the fiscal year.  The fourth quarter typically is Cyanotech's slowest growing season, moreover, due to less and weaker sunlight.  The technical problems appear to be resolved.  Output has been up year to year for the last four months.  While limited inventories may have prevented March period sales from achieving their full potential, a solid performance appears achievable.  Sales and marketing efforts continue to bear fruit.  That's shifting output increasingly toward the retail channel and away from bulk customers, boosting profit margins.  Our estimates are unchanged.  A stronger performance could be realized next year if the current trends are sustained.

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