Landec Corporation Reports First Quarter Fiscal Year 2011 Results

Landec Corporation LNDC, today reported results for the first quarter of fiscal year 2011 ended August 29, 2010. Revenues for the first quarter of fiscal year 2011 were $65.0 million compared to revenues of $60.9 million for the first quarter a year ago. Net income was $2.3 million or $0.09 per share in the first quarter of fiscal year 2011 compared to $2.2 million or $0.08 per share for the first quarter of last year. “For the first quarter of fiscal year 2011, we generated $2.3 million in net income and $4.4 million of positive cash flow from operations,” stated Gary Steele, Chairman and CEO of Landec. “Gross profit for the first quarter of fiscal year 2011 increased $2.9 million to $11.8 million compared to the first quarter of fiscal year 2010, while gross margin improved 3.6 percentage points to 18.2% compared to 14.6% during the first quarter last year, and also increased by 2.1 percentage points compared to 16.1% in the prior quarter. Landec's hyaluronan-based biomaterials subsidiary, Lifecore Biomedical, Inc., completed its first full quarter under Landec's ownership and generated $6.4 million in revenues with a gross margin of 47% generating $3.0 million in gross profit. Overall revenues for Landec increased 7% during the first quarter of fiscal year 2011 compared to last year's first quarter. Revenue growth during the first quarter of fiscal year 2011 was adversely impacted by Apio, Inc., Landec's food subsidiary, due to delays in harvesting certain export products that we expect to ship in the second quarter. In addition, Apio has exited some low margin business, including the breakeven to low-margin domestic buy/sell business, which had generated $1.8 million in revenues during last year's first quarter. We still believe that we will realize revenue growth in our Apio food business for all of fiscal year 2011. The gross margin for all of Apio increased to 12.8% in the first quarter of fiscal year 2011 from 12.6% during the first quarter last year.”