The third quarter results were achieved by exceptional execution by all departments.

Cash and cash equivalents decreased to $276,000 as of December 31, 2008 compared to the March 31, 2008 balance of $1,090,000. Working capital, however, increased to $3,772,000 at December 31, 2008 compared to $3,092,000 at March 31, 2008.

“Our focus on quality, cost containment, increased productivity, and sales growth drove our positive results. The combination of management focus and operational execution delivered a 343.6% improvement in gross profit margin and $514,000 of net income for the third quarter. These efforts and results bring our year-to-date net income to $948,000, a $2.268-million positive swing in profit over the prior-year nine-month period,” said Andrew H. Jacobson, president and chief executive officer.

Revenues for the first nine months of fiscal 2009 increased 32.4% to $10,528,000, compared to revenues of $7,950,000 for the first nine months of fiscal 2008. Gross profit for the first nine months was $4,248,000, with gross profit margin of 40.3%, compared to a gross profit of $1,867,000 and gross profit margin of 23.5% reported for the first nine months of fiscal 2008. Net income for the first nine months was $948,000, or $0.18 per diluted share, compared to net loss of $1,320,000, or ($0.25) per diluted share for the first nine months of fiscal 2008.

“As exciting as the third quarter and year-to-date results are, the results of our new spirulina cultivation strategy implemented earlier in the fiscal year are even more promising. We saw increases in our nutritional content: zeaxanthin up 200%, iron up 200%, total carotenoids up 15%, and vitamin B-12 up 62%. Hawaiian Spirulina Pacifica® is recognized as a global nutritional leader,” Mr. Jacobson went on to say. “Following the leader just got harder.”

“We are still in a period of lower temperatures and reduced sunlight, so we could experience seasonally reduced productivity in the fourth quarter. However, we remain focused on continued execution of our plan,” Jacobson concluded.