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Landec Corp. Reports Operating Results for Fiscal Quarter Ended on 2008-11-30

January 08, 2009 | About:

Landec Corp. (LNDC) filed Quarterly Report for the period ended 2008-11-30.

Landec Corporation designs develops manufactures and sells temperature-activated and other specialty polymer products for a variety of food products agricultural products specialty industrial and medical applications. This proprietary polymer technology is the foundation and a key differentiating advantage upon which they have built their business. Landec Corp. has a market cap of $167.26 million; its shares were traded at around $5.85 with a P/E ratio of 10.4 and P/S ratio of 0.7. Landec Corp. had an annual average earning growth of 27.3% over the past 5 years.

Highlight of Business Operations:

The decrease in Apio s value-added revenues for the three months ended November 30, 2008 compared to the same period last year was primarily due to a decrease in value-added unit sales volumes of 7%. The increase in value-added revenues for the six months ended November 30, 2008 compared to the same period last year was primarily due to an increase in value-added unit sales volumes of 1%.

Apio trading revenues consist of revenues generated from the purchase and sale of primarily whole commodity fruit and vegetable products to Asia through Apio s export company, Cal-Ex, and from the purchase and sale of whole commodity fruit and vegetable products domestically to Wal-Mart. The export portion of trading revenues for the three and six months ended November 30, 2008 was $17.9 million and $39.6 million, or 98% and 89%, respectively, of total trading revenues.

The decrease in gross profit for Apio s value-added specialty packaging vegetable business for the three months ended November 30, 2008 compared to the same period last year was primarily due the 5% decrease in revenues coupled with increased costs for raw materials and greater overhead absorption per unit due to lower sales volumes. The gross margin for Apio s value-added business for the second quarter of fiscal year 2009 was 11% compared to a gross margin of 15% during the second quarter of last year. The decrease in gross profit for Apio s value-added specialty packaged vegetable business for the six months ended November 30, 2008 compared to the same period last year was primarily due to increased costs for raw materials and greater overhead absorption per unit due to lower sales volumes. The gross margin for Apio s value-added business for the first six months of fiscal year 2009 was 13% compared to a gross margin of 15% during the first six months of fiscal year 2008.

Apio s trading business is a buy/sell business that realizes a commission-based margin in the 4-6% range. The increase in Apio trading gross profit for the three months ended November 30, 2008 compared to the same period last year was due to an increase in revenues coupled with a shift during the quarter to higher margin vegetable export products from lower margin fruit export products during the second quarter of fiscal year 2008 primarily due to a higher quantity of vegetable products available for export during the second quarter of this year compared to the same period last year. The increase in Apio trading gross profit during the six months ended November 30, 2008 compared to the same period last year was primarily due to increased trading revenues of 14%. The increase in revenues during the first six months of fiscal year 2009 was greater than the increase in gross profit because the revenues from domestic commodity sales, which is a 2% margin business, increased 82% whereas revenues from the higher margin export business increased 8%.

Read the The complete ReportMore on LNDC:

Gurus buys and sells of LNDC

10-year financial history of LNDC.

Insider buys/sells of LNDC.

Rating: 5.0/5 (1 vote)

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