Maryland-based fatty acid food products producer Martek Biosciences Corporation has reported revenues of $87.4 million, up 5% for the first quarter of 2009, compared to revenues of $82.9 million for the same period of 2008. Net income was $9.6 million, or $0.29 per diluted share for the first quarter of 2009, compared with net income of $8.7 million, or $0.26 per diluted share for the same period of 2008.
 
Product sales in the first quarter of 2009 increased 7% year-over-year to $84 million, reflecting higher revenues from Martek's infant formula customers, particularly outside of the United States. In addition, sales of life's DHA to non-infant formula nutritional markets grew more than 12% over the first quarter of 2008.
 
For the first quarter of 2009, the company generated $8.6 million of cash from operating activities, a $6.5 million decrease from the cash generated in the first quarter of 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 2008. Both decreases were due, in part, to the timing of ARA purchases from DSM and a higher accounts receivable balance caused by an unevenness in customer ordering patterns.
 
At the end of the first quarter of 2009, Martek had $107.3 million in cash and cash equivalents, a minimal amount of debt and the entire balance of its long-term revolving credit facility of $135 million available for future borrowing.
 
The company expects total revenues for the second quarter of 2009 to be between $87 million and $92 million. Second quarter gross margin is expected to be approximately 42.5%. Net income for the second quarter is projected to be between $8.9 million and $10.3 million, and diluted earnings per share are projected to be between $0.27 and $0.31 per share.
 
Steve Dubin, CEO of Martek, 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."