Shares of Cyanotech Corp., a Kona-based producer of nutritional microalgae products, soared 23 percent yesterday after the company reported a surge in revenues and profits for the October-to-December quarter.

Cyanotech earned $514,000, or 10 cents a share, in the quarter compared with a net loss of $594,000, or 11 cents a share, from the same three months a year earlier. Revenues rose to $3.6 million, a 29 percent increase from a year earlier.

"Our focus on quality, cost containment, increased productivity and sales growth drove our positive results," said Andrew Jacobson, president and chief executive officer.

Earnings for the first nine months of fiscal 2009 totaled $948,000, or 18 cents per share, compared with a net loss of $1.3 million, or 25 cents per diluted share for the same period of fiscal 2008. Revenue for the first nine months rose to $10.5 million, a 32.4 percent increase from a year earlier.

"As exciting as the third quarter and year-to-date results are, the results of our new spirulina cultivation strategy implemented earlier in the fiscal year are even more promising," Jacobson said.

The company was able to increase the nutritional content of some of its products by as much as 200 percent, he said.

Jacobson added that he expects some reduced productivity in the current quarter because of lower temperatures and reduced sunlight.

Cyanotech produces a range of products, including the brands BioAstin Natural Astaxanthin and Hawaiian Spirulina Pacifica, from microalgae grown at its 90-acre facility in Kona using patented technology.

Cyanotech's shares closed up 34 cents at $1.84 on the Nasdaq stock market.