Martek Biosciences Q1 net income rises to $9.6m

Martek Biosciences, a developer of health and wellness products, has reported a net income of $9.6m, or $0.29 per diluted share, for the first quarter of fiscal 2009, compared with $8.7m, or $0.26 per diluted share, for the first quarter of fiscal 2008.

Revenues for the first quarter ended January 31, 2009 were $87.4m, up 5% from $82.9m for the first quarter ended January 31, 2008.

For the first quarter of fiscal 2009, the company generated $8.6m of cash from operating activities, a $6.5m decrease from the cash generated in the first quarter of fiscal 2008. Consistent with the company’s projections noted last quarter, the first quarter’s operating cash flow also decreased as compared to the fourth quarter of fiscal 2008.

Steve Dubin, CEO of Martek Biosciences, said: Despite the troubling economy, Martek’s first quarter results showed both revenue and bottom line growth reflecting the strength of our core infant formula business, growing consumer awareness of the health benefits of DHA beyond infant formula markets and the continued execution of our business plan.

Net profits increased faster than revenue due to additional gross margin growth resulting from manufacturing improvements and increased plant utilization. While the current economy continues to present challenges for Martek as well as other businesses, I believe Martek continues to be well-positioned to deliver both revenue and profit growth in 2009.