Landec Q1 Profit Down

(RTTNews) - Landec Corp. (LNDC) Tuesday reported a profit for the first quarter that halved from last year, despite 22 percent revenue growth.

Net income for the quarter dropped to $2.35 million or $0.09 per share from $4.75 million or $0.18 per share last year. Analysts polled by Thomson Reuters expected earnings of $0.09 per share for the quarter. Analysts' estimates typically exclude one-time items.

The decrease in bottom line mainly reflects a $5.2 million decrease in the change in the fair market value of the company's Windset investment and a $1.2 million increase in the net loss at Lifecore from lower sales of higher margin fermentation products.

Consolidated revenues increased 22 percent to $133.6 million from $109.5 million last year, with Apio's value-added vegetable business up 26 percent and Apio's export business up 24 percent. Analysts had a consensus revenue estimate of $121.91 million for the quarter.

"For the first quarter, we exceeded both our revenue and operating income expectations because of positive operating results at Apio driven by sales increases in our higher margin vegetable salad kits and stir fry kits, which we collectively refer to as our superfood products," said CEO Gary Steele.