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Blogs under tag Cereplast

Cereplast - second quarter results Posted by Shankar on Sun August 22 2010 12:18:51 PM 2

this is one of my favourite companies.
Cereplast too, like Cyanotech didnt make much progress, but the reasons are convincing.

The company made two major moves. One is shifting the operations from California to Indiana and the other is to get listed in Nasdaq. Both have resulted in some loss in production and increase in expeneses / losses.

I still strongly feel that it is agood company to invest in and also a good company to associate with for
a. Distribution and b. Technology

Revenues for the second quarter ended June 30, 2010, totaled $684,431 compared to $900,598 a year ago. The decrease was partially offset by an increase in orders from both existing and new customers.

Gross profit rose by $121,790, or 157.3%, to $199,211 for the three months ended June 3, 2010 compared to gross profit of $77,421 for the three months ended June 30, 2009.

As a percentage of net sales, gross profit margin increased to 30.8% for the three months ended June 30, 2010 from 8.6% for the three months ended June 30, 2009.

"We achieved significant milestones in the second quarter and further positioned the Company for rapid growth and operational profitability," said Mr. Frederic Scheer, Founder, Chairman and CEO of Cereplast, Inc.

"Our gross profit rose significantly.

As a result, our second quarter gross margin as a percentage of net sales increased to 30.8% from 8.6% in the same period last year.

Though sales were impacted by the ramp up of our facility taking place towards the beginning of the quarter as we moved our operations to Indiana from California, we expect revenues for 2010 could increase more than 190% over last year to between $8-$10 million as demand for our products remains strong as a result of contracts and commitments we are securing from around the world.

We dont have information about what % of their produce is made of algae, although we know that they are pretty serious about using algae in many of their bio plastics in the future if not now.