Shares of Cyanotech Corp. soared yesterday after the Kona-based microalgae producer reported a sharp increase in profitability.

The company reported it earned $599,000, or 11 cents a share in the latest quarter, up nearly threefold from $163,000, or 3 cents a share for the same period a year earlier.

The earnings came on revenue of $3.93 million, up 20 percent from $3.27 million a year earlier.

The company's stock rose 46 cents a share, or 20 percent, to close at $2.74 on the Nasdaq Stock Market.

Cyanotech makes high-value nutrition and health products from microalgae. Sales of both of Cyanotech's core products, Spirulina Pacifica and BioAstin Natural Astaxanthin, grew during the quarter, the company reported.

"These results affirm the company's strategy of focusing on and building sound business fundamentals throughout the organization," said Andrew H. Jacobson, president and chief executive officer.

He said the company plans to roll out a new Nutrex brand in the second half of 2010 and introduce several new products containing Hawaiian Spirulina Pacific and BioAstin Natural Astaxanthin.

The company reported it had $1.1 million in cash and cash equivalents as of Sept. 30, compared with $977,000 as of March 31.

Working capital increased to $4.6 million, from $3.9 million during the same period.

All Cyanotech products are produced from microalgae grown at its 90-acre facility in Kona using patented and proprietary technology.

Cyanotech distributes to nutritional supplement, nutraceutical and cosmeceutical manufacturers and marketers in more than 40 countries worldwide.