A fast growing, highly orange color pigmented strain of Thraustochytrids was isolated from New Zealand marine waters. This strain showed efficient utilization of glycerol as carbon source and produced significant amount of cell dry biomass (2.08gL-1), TFA (30.15% of dry cell weight), DHA (27.83% of TFA) and astaxanthin (131.56μgg-1). Astaxanthin is the dominant constituent in the carotenoid profile of Thraustochytrium sp. S7 and is an important antioxidant. Different cell disruption methods were applied for efficient astaxanthin extraction. Mechanical disruption of cells via ultrasonication resulted in the highest astaxanthin yield, from 26.78±1.25μgg-1 to 156.07±4.16μgg-1. Optimization of ultrasonication process using response surface methodology resulted into significant decrease in lysis time from 30min to 10min. This strain can be used for concurrent production of lipids and high value co-products such as DHA and astaxanthin.