Cyanotech Corp., a Kona-based producer of nutrition and health products made from microalgae, reported its third consecutive quarterly profit, the first time it has strung together profits over a nine-month period since 2005.

The company reported net income of $163,000, or 3 cents a share, in the three months ended Sept. 30. That compares with a year-earlier loss of $344,000, or 7 cents a share.

Over the past year, Cyanotech has taken steps to improve its financial results by refocusing its product line and laying off 20 percent of its production and administrative staffs. The company also brought in Andrew Jacobson as chief executive officer and president earlier this year, replacing Gerald Cysewski, who became Cyanotech's chief scientific officer.

The company said the quarterly profit rose as it increased sales and boosted its gross profit margin.

"Our momentum continued to accelerate," said Jacobson in a press statement.

"We saw the efforts of our new cultivation strategy begin to show benefits as we experienced increased productivity of 53.5 percent for spirulina and 34 percent for astaxanthin."

Cyanotech grows microalgae at a 90-acre facility, to make its Hawaiian Spirulina Pacifica and BioAstin Natural Astaxanthin products. The company says spirulina can be used as a food ingredient and augments energy and immune response, and that BioAstin has antioxidant benefits.

The company said quarterly revenue jumped 26 percent to $3.27 million, while operating expenses only rose by 8.4 percent.

Jacobson said Cyanotech expects reduced productivity because of seasonal changes as water gets cooler and winter provides reduced sunlight. "But we will stay focused on improving cultivation and productivity, containing costs and increasing sales and nutritional quality."

Cyanotech shares rose 14 cents, or 9.5 percent, to $1.61 on news of the profit.