Full Press Release Details
News Release
Contact: Bruce Russell/RCG 310-559-4955x101 brucerussell@ruscom.com
Cyanotech to Restate Financial Statements
KONA, Hawaii (December 1, 2006) Cyanotech
Corporation (Nasdaq: CYAND) announced today that it has determined to
restate certain of its previously issued financial statements. The restatement will include amounts
correcting the Company s results for historical treatment of certain inventory
related costs. Additionally, the Company
has identified certain minor out-of-period items relating to recording Hawaii
state tax credits and accruing interest, which will also be recorded in the
appropriate periods in the restated consolidated financial statements. Further, the Company will also reclassify
certain certificates of deposit from cash to investments in conjunction with
Company identified the matter during the ordinary course of reviewing the
Company s financial results for the first quarter of fiscal year 2007. This was in conjunction with the Company s
previously disclosed intent to adopt Statement of Financial Accounting
Standards No. 151 for the first quarter of fiscal year 2007.
financial statements expected to be restated are the consolidated balance
sheets as of March 31, 2006 and 2005 and the consolidated statements of
operations, stockholders equity and comprehensive income (loss), and cash
flows for each of the years in the three year period ended March 31, 2006. This
includes the Company s unaudited quarterly financial statements during these
years.The Company said that these consolidated financial statements, as filed,
contain errors and should therefore not be relied upon. The related auditor reports of KPMG LLP, the
Company s independent registered public accounting firm, with respect to these
consolidated financial statements should also no longer be relied upon.
Company has informed its secured credit facility administrator of its intention
to restate its financial statements and of its failure to submit its quarterly
financial statements timely for the first and second quarters of fiscal year
2007. The Company also requested and has obtained waiver of debt covenants that
may not be in compliance as a result of restating previously issued financial
statements, and also has obtained waiver as related to untimely submission of
its quarterly financial statements for the first and second quarters of fiscal
Company said that following completion of its work and that of its independent
registered public accounting firm, restatement of the Company s financial
results will be effected as soon as practicable by the filing of a Form 10-K/A.
Kaahumanu Highway, #102 ~ Kailua-Kona, Hawaii 96740
(808) 326-1353 fax (808) 329-3597 ~ www.cyanotech.com