Landec Corporation designs, develops, manufactures and sells temperature-activated and other specialty polymer products for a variety of food, agricultural and licensed partner applications. The Company's temperature-activated polymer products are based on its proprietary Intelimer polymers which differ from other polymers in that they can be customized to abruptly change their physical characteristics when heated or cooled through a pre-set temperature switch. 

http://www.landec.com/

Landec Corporation Reports First Nine Months and Third Quarter Fiscal Year 2009 Results
Landec Ends Quarter with Record Cash of $63.9 Million
MENLO PARK, Calif., Apr 07, 2009 (BUSINESS WIRE) -- Landec Corporation (Nasdaq:LNDC), today reported results for the first nine months and third quarter of fiscal year 2009. Revenues for the first nine months of fiscal year 2009 increased 1.4% to $183.7 million compared to revenues of $181.2 million for the same period a year ago. Net income for the first nine months decreased to $5.9 million or $0.22 per diluted share compared to net income of $10.2 million or $0.38 per diluted share for the same period last year. For the third quarter of fiscal year 2009, revenues were $53.9 million versus revenues of $59.6 million in the year ago quarter. The Company reported net income for the third quarter of fiscal year 2009 of $1.5 million or $0.06 per diluted share compared to net income of $4.0 million or $0.15 per diluted share in the third quarter of the prior year.
"For the first nine months of fiscal year 2009, we have increased revenues, generated net income and generated cash flow from operations," stated Gary Steele, Chairman and CEO of Landec. "Since November 2008, we have been feeling the impact from the slumping U.S. economy and the decline in consumer spending. However, we have held and slightly improved our gross margin and operating margin during the third quarter relative to the second quarter. In addition, our fresh-cut vegetable business continues to outperform the overall industry category. According to syndicated market data, for the three and nine month periods ended March 1, 2009, the overall industry unit volume sales in the fresh-cut vegetable category declined 13% and 8%, respectively. Landec's unit volume sales in the fresh-cut vegetable category for the same three and nine month periods declined 5% and 1%, respectively, compared to the same periods last year, resulting in increased market share. We believe that the fresh-cut vegetable industry category will return to positive growth during our fiscal year 2010 as consumers return to fresh, nutritious and conveniently packaged produce products." 
"For our fiscal year ending May 31, 2009, we expect Landec revenues to be moderately down compared to last fiscal year," stated Greg Skinner, Landec's Chief Financial Officer. "We expect our fourth quarter revenues to follow the normal seasonal pattern resulting in a decrease of about 5% from third quarter revenues. At this point in time, due to the uncertainty of the U.S. economy and consumer spending, it is difficult to forecast our net income for all of fiscal year 2009 with any degree of reliability. However, in our fourth quarter we expect operating income to be higher than in our third quarter and we expect to generate positive cash flow from operations. Our balance sheet remains very strong, with no debt and with a record level of nearly $64 million of cash and marketable securities." 
For the first nine months of fiscal year 2009, the increase in overall revenues of $2.5 million compared to the same period last year was due to a $4.0 million or 8% increase in revenues from Apio's commodity trading business primarily due to an increase in domestic buy/sell revenues. This increase was partially offset by a $1.3 million or 1% decrease in revenues from Apio's value-added specialty packaging vegetable products. 
For the first nine months of fiscal year 2009, Landec's net income decreased to $5.9 million from $10.2 million in the same period last year due to several factors. Items decreasing net income included: (1) a $3.3 million decrease in gross profit in Apio's value-added vegetable business primarily due to increased raw material costs for produce and packaging, (2) an $883,000 or 46% decrease in interest income due to the Company's decision to invest only in FDIC-insured certificates of deposit, U.S. government backed instruments and AAA rated municipal bonds, all of which have yields that are considerably lower than those the Company realized from its investments in the same period last year, and (3) an increase in income tax expense of $189,000 due to an increase in Landec's effective tax rate for fiscal year 2009 to 41%. These decreases in net income were partially offset by a $287,000 or 11% increase in gross profit for Apio's commodity trading business. 
The decrease in revenues for the third quarter of fiscal year 2009 was primarily due to: (1) a $3.0 million or 6% decrease in revenues from Apio's value-added specialty packaging vegetable products due to the decline in the fresh-cut vegetable category during the third quarter, (2) a $1.3 million decrease in revenues from Apio Packaging due to the timing of minimum payments from Chiquita, and (3) a $1.3 million decrease in revenues from Apio's commodity trading business due to a decrease in trading sales volumes and from lower average per unit sales prices due to product mix changes to lower priced fruit products. 
For the third quarter of fiscal year 2009, Landec's net income decreased to $1.5 million from $4.0 million in the same period last year due to several factors. Items decreasing net income included: (1) a $1.8 million decrease in gross profit in Apio's value-added vegetable business related to lower revenues and higher costs outlined above, (2) a $1.3 million decrease in gross profits from Apio Packaging related to the timing of revenues compared to the prior year, and (3) a $307,000 or 58% decrease in interest income from lower yielding instruments compared to the prior year. These decreases in net income were partially offset by a $618,000 decrease in operating costs primarily due to lower selling, general and administrative expenses at Apio and a $405,000 decrease in income tax expenses due to lower pre-tax earnings. 

Landec Corporation Reports First Quarter Fiscal Year 2009 Results 
MENLO PARK, Calif.--(BUSINESS WIRE)--
Landec Corporation (Nasdaq:LNDC), today reported results for the fiscal year 2009 first quarter ended August 31, 2008. Revenues for the first quarter increased 15% to $71.8 million compared to revenues of $62.7 million for the same period a year ago. Operating income increased 26% to $4.6 million compared to $3.6 million in the prior year first quarter. The Company reported net income for the quarter of $2.8 million or $0.11 per diluted share compared to net income of $3.1 million or $0.11 per share for the same period last year.
"The results of our first quarter reflect continuing progress in our businesses," stated Gary Steele, Chairman and CEO of Landec. "Overall revenues grew 15% while operating income grew 26% and pre-tax income grew 12% compared to the first quarter last year. Even more notable, our cash balances grew to $62.0 million with no debt, resulting in the continued strengthening of Landec's positive financial position. It should be noted that both the results for the first quarter of fiscal year 2009 and our previously announced fiscal year 2009 guidance, included 14 weeks in the first quarter versus 13 weeks in the first quarter last year. At this point in time, we are not changing our guidance for fiscal year 2009, which is to grow overall revenues by 10% and to grow pre-tax income 15% to 20% compared to fiscal year 2008. We have seen a slow down in the growth of the fresh-cut produce category this past quarter. It is too early to determine if this slow down will continue. We are closely monitoring consumer demand, overall pricing and our operating costs to determine if we will need to adjust our guidance later in the year."
Mr. Steele continued, "Our food technology business was a major contributor to our growth during the first quarter of fiscal year 2009. The food technology business consists of Apio's value-added specialty packaged vegetables business plus Apio's separate packaging technology business. The two businesses combined generated revenue growth of 11% and an increase in gross profit of 17% during the first quarter of fiscal year 2009 compared to the same period last year. The revenues and gross profit from our value-added specialty packaged vegetables business grew in the first quarter of fiscal year 2009 despite a slowing economy and increased cost pressures. The packaging technology business benefited from expanded shipments of our BreatheWay(R) packaging technology to Chiquita Brands International, Inc. ("Chiquita") for its Chiquita-To-Go(TM) banana program which is focused on selling Chiquita(R) brand bananas to convenience stores, quick service restaurants ("QSRs") and coffee chains. In addition, Apio's trading business also recorded increases in revenue and gross profit of 23% and 10%, respectively, compared to the same period last year, primarily due to increased sales volume in the lower margin domestic buy/sell business."
After tax net income for the first quarter of fiscal year 2009 decreased $238,000 or 8% compared to the first quarter last year, primarily due to two expected changes. First, our income tax expense increased $729,000 or 62% due to an increase in Landec's effective tax rate for fiscal year 2009 to 40%. The percentage increase in our income tax expense for this year's first quarter compared to last year's first quarter was less than what is anticipated for all of fiscal year 2009 because the recorded tax rate for the first quarter of last fiscal year was 28% instead of the final adjusted tax rate (adjusted during the fourth quarter of fiscal year 2008) of 20% for all of fiscal year 2008. Second, interest income decreased $424,000 or 54% due to the Company's decision to invest only in FDIC-insured certificates of deposit, U.S. backed instruments, AAA rated commercial paper and money market funds, all of which have yields that are considerably lower than those the Company realized from its investments in the same period last year. These two decreases in net income were almost entirely offset by the $1.0 million increase in operating income in the first quarter of fiscal year 2009 compared to the first quarter of fiscal year 2008. In addition, during the first quarter of fiscal year 2009 the Company generated $2.2 million of positive cash flow from operations including a 7% increase in working capital to $66.9 million compared to the first quarter of fiscal year 2008. Cash and marketable securities increased $3 million during the first quarter of fiscal year 2009 to $62.0 million.
Landec's First Quarter of Fiscal Year 2009 Earnings Conference Call
A conference call will follow this release at 8:00 a.m. Pacific Time on Wednesday, October 1, 2008, during which senior management of Landec will present an overview of results for the first quarter of fiscal year 2009. Interested parties have the opportunity to listen to the conference call live on the Internet at www.landec.com on the Investor Relations web page. A replay of the webcast will be available for 30 days. Additionally investors can listen to the call by dialing (866) 814-1915 or (703) 639-1359 at least 5 minutes prior to the start. A replay of the call will be available through Wednesday, October 8, 2008 by calling (888) 266-2081 or (703) 925-2533, code #1281686.