Higher bulk sales of astaxanthin products lifted revenue at Hawaii's Cyanotech by 41 per cent in second quarter of fiscal 2004, helped by strong performance at the firm's subsidiary in Japan.

For the first six months of fiscal 2004, net sales were $5.3 million, an increase of 30 per cent from the $4 million recorded for the comparable period of fiscal 2003.

"We continue to see strong demand for our NatuRose products in Japan and are also experiencing increased sales of our BioAstin products in the United States and Europe," said Gerald R. Cysewski, CEO of the company.

But the firm, which claims to be the world leader in natural products made from microalgae, was unable to cut losses at the group, where first half profits fell further to a loss of $151,000, or ($0.01) per diluted share, compared to a net loss of $1,325,000, or ($0.08) per diluted share for the prior fiscal first half.

Operating expenses for the first six months of fiscal 2004 have however decreased by $643,000 from the comparable period of last year, said Cyanotech, and gross profit margin percentage for the quarter ended September 30 showed a slight increase over both the prior quarter and the comparable quarter of the prior fiscal year.

It has also improved working capital, generating increased cash during the second quarter of 2004.