MENLO PARK, Calif., Apr 23, 2012 (BUSINESS WIRE) –Landec Corporation (Nasdaq:LNDC), a company that develops and markets patented products for food, agricultural and biomedical applications, announced today that its wholly owned food subsidiary, Apio, Inc., has acquired GreenLine Foods, Inc. from The Riverside Company, a global private equity firm. GreenLine Foods, headquartered in Perrysburg, Ohio, is the leading processor and marketer of value-added, fresh-cut green beans in North America. The acquisition is expected to be immediately accretive to Landec. For Landec’s upcoming fiscal year 2013 beginning May 28, 2012, GreenLine’s revenues are projected to be approximately $95 million to $100 million and EBITDA is estimated to be between $10 million to $11 million.

The acquisition of GreenLine combines two leading brands in the fresh-cut produce market, the Apio Eat Smart® brand and the GreenLine® brand, resulting in combined market presence in approximately 80% of North American retail grocery store sites, supported by GreenLine’s strategic and extensive East Coast processing and distribution facilities. Read entire release…

MENLO PARK, Calif.–(BUSINESS WIRE)–Mar. 26, 2012– Landec Corporation (Nasdaq: LNDC), today reported results for the third quarter and first nine months of fiscal year 2012. Revenues for the third quarter of fiscal year 2012 increased 9% to $80.1 million compared to revenues of $73.5 million for the third quarter of fiscal year 2011. Net income increased 107% to $4.8 million, or $0.18 per diluted share, compared to net income of $2.3 million, or $0.09 per diluted share, during the third quarter of fiscal year 2011. Read entire release…

MENLO PARK, Calif.–(BUSINESS WIRE)—March 6, 2012–Landec Corporation (Nasdaq:LNDC) announced today that it will report financial results for the fiscal year 2012 third quarter ended February 26, 2012, after market close on Monday, March 26, 2012.

The news release will be followed the next morning, Tuesday, March 27, 2012, by a teleconference and webcast open to all interested parties at 8:00 a.m., Pacific Time. The teleconference can be accessed by calling 866-244-4530 or 703-639-1173. Please log in 5 – 10 minutes prior to the beginning of the call.

Read entire release…

MENLO PARK,CA– January 3, 2012 — Landec Corporation (Nasdaq: LNDC), today reported results for the second quarter and first half of fiscal year 2012.  Revenues for the second quarter of fiscal year 2012 increased 16% to $81.6 million compared to revenues of $70.2 million for the second quarter of fiscal year 2011.  Net income increased 63% to $3.3 million, or $0.13 per share, compared to net income of $2.1 million, or $0.08 per share, during the second quarter of fiscal year 2011. Read entire release…

MENLO PARK, Calif.–(BUSINESS WIRE)–Dec. 13, 2011– Landec Corporation (NASDAQ:LNDC) announced today that it will report financial results for the fiscal year 2012 second quarter ended November 27, 2011, after market close on Tuesday, January 3, 2012.

The news release will be followed the next morning, Wednesday, January 4, 2012, by a teleconference and webcast open to all interested parties at 8:00 a.m., Pacific Time. The teleconference can be accessed by calling 866-238-1645 or 703-639-1163. Please log in 5 – 10 minutes prior to the beginning of the call.

This call is being webcast by Thomson Reuters and can be accessed at Landec’s web site at www.Landec.com by selecting Investors and the Financial Releases & Events page. The webcast will be available for 30 days through February 3, 2012. A replay of the teleconference will be available for one week until midnight Eastern Time, Wednesday, January 11, 2012, by calling 888-266-2081 or 703-925-2533. The access code for the replay is 1561486.

For further information, please call Greg Skinner 650-261-3677.

The webcast is also being distributed over Thomson Reuters’ Investor Distribution Network to both institutional and individual investors. Individual investors can listen to the call through Thomson’s individual investor center at www.fulldisclosure.com or by visiting any of the investor sites in Thomson’s Individual Investor Network such as America Online’s Personal Finance Channel, Fidelity Investments(R) (Fidelity.com) and others. Institutional investors can access the call via Thomson’s password-protected event management site, StreetEvents (www.streetevents.com). StreetEvents allows institutional investors to identify, organize, and track the hundreds of conference calls that occur each day during earnings season, to download events of interest to their Outlook calendar, and to RSVP to events online.

Landec Corporation is a materials science company that leverages its proprietary polymer technologies, application development and innovation capabilities to develop and commercialize new products in biomedical, agricultural and industrial markets. Landec has two proprietary polymer technology platforms: Intelimer Polymers^® and Sodium Hyaluronate (“NaHy”) that are the foundation for its business. Landec’s subsidiary, Apio, has become the leader in US fresh-cut specialty packaged vegetables by combining Landec’s proprietary food packaging technology with the capabilities of a large national food supplier, processor and distributor. Through its subsidiary, Lifecore Biomedical, Landec is now a premium supplier of hyaluronan-based materials and medical products to ophthalmic, orthopedic and veterinary markets worldwide. Landec’s Licensing Partnershipswork closely with market-leading companies to develop and commercialize differentiated polymer-based products. For more information about the Company, visit Landec’s website at www.landec.com.

Source: Landec Corporation

Landec Corporation
Greg Skinner, 650-261-3677

 
MENLO PARK, Calif., Nov 01, 2011 (BUSINESS WIRE) — Landec Corporation (Nasdaq:LNDC), a materials science company that leverages its proprietary polymer technologies to develop and commercialize new products for food, biomedical, agricultural and industrial markets, today announced the launch of its new corporate website at http://www.landec.com. The new site provides insight into Landec’s businesses, technologies, and commercial applications to deliver a deeper understanding of Landec’s unique products and capabilities. The site highlights Landec’s materials science and innovation expertise and identifies specific areas of interest in which Landec is currently seeking partners for development of new technology solutions.

Molly Hemmeter, Landec Chief Commercial Officer, commented, “We are proud to announce our new corporate website for the benefit of the many parties interested in Landec, including customers, partners and employees across our diverse businesses, as well as our investors, media and others. It is an exciting time at Landec, with our recent entry into the biomaterials market through the acquisition of Lifecore Biomedical, our continued investment in and expansion of our food business, and the continued development of new technology solutions and partner relationships. The new website articulates Landec’s underlying expertise in materials science and the Company’s vision for innovation and growth within each of our core businesses.”

“As Landec continues to grow, our website will provide a new platform for understanding our businesses, keeping investors informed and engaging with potential new partners in areas where we see strategic opportunities for our technology. We invite you to visit our website for what we hope will be a productive and interactive experience with Landec,” concluded Hemmeter.

MENLO PARK, Calif., Oct 04, 2011 (BUSINESS WIRE) — Landec Corporation (Nasdaq:LNDC), today reported results for the first quarter of fiscal year 2012 ended August 28, 2011. Revenues for the first quarter of fiscal year 2012 increased 13% to $73.3 million compared to revenues of $65.0 million for the first quarter a year ago. Net income was $1.8 million or $0.07 per share in the first quarter of fiscal year 2012 compared to $2.3 million or $0.09 per share for the first quarter of last year.

Revenues increased $8.3 million during the first quarter of fiscal year 2012 compared to the first quarter of fiscal year 2011 primarily due to a $3.2 million increase in value-added fresh-cut vegetable revenues at Apio Inc., Landec’s food subsidiary, primarily driven by the growth of the overall produce category and new product introductions and a $4.9 million increase in Apio export revenues due to greater availability of fruit to export.

The decrease in net income for the first quarter of fiscal year 2012 compared to the first quarter of fiscal year 2011 was primarily due to (1) a $348,000 decrease in gross profit for Apio Packaging because of lower BreatheWay® packaging sales to Chiquita compared to the initial large orders of BreatheWay for avocados to build inventory for initial product launch that occurred during the first quarter of last year, (2) a $280,000 decrease in gross profit for Lifecore from a product sales mix change resulting from the timing of shipments of aseptically filled products versus fermentation products, which reduced Lifecore’s gross margin to 38% for the quarter, compared to Lifecore’s expected gross margin of approximately 50% for all of fiscal year 2012, and (3) a $493,000 decrease in operating income due to higher operating expenses as a result of increased brokerage and commission sales expenses from higher sales at Apio and from accruing for bonuses at Apio and Corporate which were not accrued during the first quarter of last year. These decreases in operating income were partially offset by $281,000 in accrued dividend income from our preferred stock investment in Windset Farms, and a $242,000 reduction in income tax expense due to lower pre-tax income.

Gary Steele, Landec Chairman and CEO, commented, “We had a productive first quarter, achieving revenue growth of 13% and cash flow from operations of $4.4 million, which is the same amount of operating cash generated in the first quarter last year. While net income was lower during the first quarter this year compared to the same quarter last year, we exceeded our internal plan for the quarter. We are tracking well towards meeting or exceeding our financial guidance for fiscal year 2012 of 5% or better revenue growth and 30% to 40% net income growth after adding back the one-time impairment charge of $4.8 million to net income for fiscal year 2011.”

“On September 14, 2011, we announced that Monsanto Company had informed us that it intends to allow the co-exclusive technology license agreement between Landec and Monsanto to expire in accordance with its terms on December 1, 2011, without Monsanto exercising its purchase option. As a result, Monsanto will pay Landec a $4 million termination fee on or prior to December 1, 2011. Since entering into the license agreement with Monsanto, the Company has been recognizing $200,000 in revenue per quarter as a result of this guaranteed termination fee. Importantly, all rights to the Intellicoat®seed coating and controlled release technology will be returned to Landec, allowing us to broaden our early stage discussions with other leading seed and crop protection companies,” added Steele.

“Also during the first quarter, Chiquita decided to renew its licensing and distribution agreement with Apio for an additional five years, thus maintaining Chiquita’s exclusive right to use our BreatheWay technology for existing programs with bananas, avocados and mangos, and adding selective shipping container applications to the agreement. We are very pleased to continue working with Chiquita, one of the global market leaders in tropical fruit sourcing, distribution and marketing. Our agreement with Chiquita includes guaranteed minimum purchases of BreatheWay membranes for all fields in which Chiquita has exclusive rights,” concluded Steele.

Landec First Quarter 2012 Earnings Conference Call

A conference call will follow this release at 8:00 a.m. Pacific Time on Wednesday, October 5, 2011 during which senior management of Landec will present an overview of results for the first quarter of fiscal year 2012. Interested parties have the opportunity to listen to the conference call live on the Internet at http://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) 238-1665 or (703) 639-1164 at least 5 minutes prior to the start. A replay of the call will be available through Wednesday, October 12, 2011 by calling (888) 266-2081or(703) 925-2533, code #1551099.

Landec is a materials science company, leveraging its capability in polymer science and bio-application development in order to commercialize new products within a variety of life science fields, including food, agricultural, personal care and medical device applications. With its Intelimer^® polymers, Landec is able to customize its proprietary polymer materials for each application through the manipulation of controlled release, temperature activation and biocompatibility properties. Landec’s subsidiary, Apio, has leveraged Landec’s BreatheWay^® membrane to become the leader in U.S. fresh-cut specialty vegetables. Landec Ag offers a full solution of seed coatings and enhancements that work with the latest genetic technologies to drive continuous improvements in crop yield. Landec has also commercialized dozens of personal care, industrial and adhesive products through its long-standing partner relationships. Through its subsidiary, Lifecore Biomedical, Landec is now a premium supplier of hyaluronan-based biomaterials to the ophthalmic, orthopedic and veterinary markets worldwide. For more information about the Company visit Landec’s website at http://www.landec.com.

Except for the historical information contained herein, the matters discussed in this news release are forward-looking statements that involve certain risks and uncertainties that could cause actual results to differ materially, including such factors among others, as the timing and expenses associated with operations, the ability to achieve acceptance of the Company’s new products in the market place, the severity of the current economic slowdown, weather conditions that can affect the supply and price of produce, the amount and timing of research and development funding and license fees from the Company’s collaborative partners, the timing of regulatory approvals, the mix between domestic and international sales, and the risk factors listed in the Company’s Form 10-K for the fiscal year ended May 29, 2011 (See item 1A: Risk Factors) which may be updated in Part II. Item 1A Risk Factors in the Company’s Quarterly Reports on Form 10-Q. As a result of these and other factors, the Company expects to continue to experience significant fluctuations in quarterly operating results and there can be no assurance that the Company will remain consistently profitable. The Company undertakes no obligation to update or revise any forward-looking statements whether as a result of new developments or otherwise.

Click here to view Tables and Q&A

SOURCE: Landec Corporation

Landec Corporation
Gregory S. Skinner, 650-261-3677
Vice President Finance and CFO

Landec Corporation Reports Fiscal Year 2011 and Fourth Quarter Results

Landec revenues increased $9.9 million or 17% to $68.1 million during the fourth quarter of fiscal year 2011 compared to the fourth quarter of fiscal year 2010, primarily due to a $4.1 million increase in revenues at Lifecore which was acquired on April 30, 2010. In addition, revenues in Apio Inc.’s value-added vegetable business increased $3.9 million or 9% to $46.8 million and Apio export revenues increased $1.7 million, or 15% to $13.4 million compared to the fourth quarter last year.

The net loss for the fourth quarter of fiscal year 2011 increased $1.3 million to $2.7 million, or $0.10 per diluted share. The increase in the net loss was due to the $4.8 million impairment charge and a $455,000 loss at Lifecore due to the timing of shipments between the third and fourth quarters. These increases in the net loss were partially offset by the absence of the $3.7 million of non-recurring charges recorded during the fourth quarter of last year and from a $363,000 increase in pre-tax income for Apio. Excluding the impairment charge during the fourth quarter of fiscal year 2011 and the non-recurring charges during the fourth quarter of fiscal year 2010, adjusted earnings per share for the fourth quarter of fiscal years 2011 and 2010 would have been $0.08 and $0.09, respectively.

Gary Steele, Landec Chairman and CEO, commented, “Considerable progress was made during Landec’s fourth quarter including: (1) the continuing successful integration of Lifecore, (2) the use of Landec’s Intelimer(R) technology for personal care products which has now been formulated into over 50 products, (3) the return to growth for Apio’s value-added vegetable business, and (4) initiation of new licensing discussions with future potential partners in our Technology Licensing business.”

At fiscal year end 2011, Landec performed its annual goodwill impairment analysis and concluded that Landec Ag’s $4.8 million of goodwill was fully impaired. As a result, Landec recorded the goodwill impairment charge as of May 29, 2011 in other operating expenses. While Landec has made good technical progress on the program with Monsanto for the controlled release of actives from seed applied coatings, it became apparent during the fourth quarter that conclusive biological test results are probably not achievable in the four months left in the agreement before Monsanto has to make its purchase option decision. The uncertainty related to whether Monsanto Company will exercise its purchase option for the exclusive licensed field of technology, and the fact that Landec Ag is projected to be unprofitable for several years absent any ongoing relationship with Monsanto, were the main factors contributing to the decrease in the estimated fair value of the Landec Ag business and the full impairment of the related goodwill. Landec and Monsanto may decide before the current agreement terminates on December 1, 2011, to extend the purchase option date for Monsanto in order to have more biological test data.

Fiscal Year 2011 Results

Landec revenues increased $38.5 million, or 16%, to $276.7 million for fiscal year 2011 compared to the same period a year ago. The increase in revenues was primarily due to a $31.0 million increase in revenues from Lifecore and a $7.4 million increase in revenues from Apio.

Net income for fiscal year 2011 was virtually flat with last year at $3.9 million or $0.15 per diluted share. There were several offsetting items which resulted in net income being virtually unchanged from last year. Items that decreased net income were (1) the $4.8 million impairment charge discussed above, (2) a net decrease in pre-tax income of $3.0 million at Apio primarily due to weather related produce sourcing issues in Apio’s value-added vegetable business, and (3) a $2.9 million increase in Technology Licensing and Corporate operating expenses due primarily to (a) a full year of Landec Ag operating expenses compared to only a half year in fiscal year 2010 as operating expenses for the first half of fiscal year 2010 were reimbursed by Monsanto, (b) an increase in stock based compensation expenses, (c) an increase in R&D expenses due to the hiring of additional scientific staff, and (d) an increase in accounting and tax service fees. Items that increased net income were (1) Lifecore’s net income of $7.3 million, and (2) the absence of $3.7 million of non-recurring charges which negatively impacted net income in fiscal year 2010.

For fiscal year 2011, Landec’s gross margin improved 2.7 percentage points to 16.9% compared to 14.2% in fiscal year 2010, representing a 38%, or $12.9 million, increase in gross profit. This increase is attributed to the $16.4 million increase in gross profit contributed by Lifecore, partially offset by the $3.6 million decrease in gross profit in Apio’s value-added business.

Landec ended fiscal year 2011 with $36.3 million in cash and marketable securities and during fiscal year 2011, Landec generated $14.5 million in cash from operations, a 93% increase over fiscal year 2010.

Management Comments andGuidance

On February 15, 2011, Apio purchased $15 million of Senior Preferred Shares and $201 of Common Shares in Windset Holdings 2010 Ltd. (“Windset”). The investment represents a 20.1% equity ownership by Apio in Windset. The investment will result in a 7.5% annual cash dividend on the Senior Preferred Shares. In addition, Apio will recognize quarterly 20.1% of the change in the fair value of Windset as non-operating income (loss). From the closing date of February 15, 2011 through the end of fiscal year 2011, Landec recognized $328,000 of dividends and $662,000 in other income from the increase in the fair value of its investment in Windset.

Dennis Allingham, Lifecore’s CEO, said, “Customer service is a cornerstone of Lifecore’s product and sales offerings. As a result, Lifecore strives to meet diverse customer requirements, which can fluctuate notably from quarter to quarter and impact margins based upon sales mix. Certain orders originally planned for the fourth quarter were filled and shipped at customers’ requests in the third quarter, resulting in lower revenues and operating income in the fourth quarter. Overall, Lifecore had an exceptionally good year and exceeded its plan for fiscal year 2011 for both revenues and income.”

Ron Midyett, Apio’s CEO stated, “Although March was a wet month in California, weather conditions improved in April and May and as a result revenues in our value-added vegetable business grew 9% during the fourth quarter of fiscal year 2011 compared to the fourth quarter last year and the gross profit from these increased revenues offset increased produce sourcing costs due to weather-related sourcing issues in March.”

Continued Mr. Steele, “For fiscal year 2012, we plan to grow revenues approximately 5% and, after adding back the $4.8 million impairment charge to net income for fiscal year 2011, we plan to grow net income in fiscal year 2012 by 30% to 40%. This guidance excludes the gain that would be recognized if Monsanto elects to exercise its purchase option. Please see the Questions and Answers section in this release following the financial statements pages for more details concerning the projected growth in net income.”

“Landec’s strategy, as evidenced by the growth in revenues and gross margin during fiscal year 2011, is to continue to shift its revenue mix to higher margin businesses by identifying and taking advantage of high margin business opportunities and by investing in new product development,” concluded Mr. Steele.

Landec Fourth Quarter 2011 Earnings Conference Call

A conference call will follow this release at 8:00 a.m. Pacific Time on Wednesday, July 27, 2011 during which senior management of Landec will present an overview of results for the fourth quarter and fiscal year 2011. Interested parties have the opportunity to listen to the conference call live on the Internet at http://www.landec.comon 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) 253-5757 or (703) 639-1206 at least 5 minutes prior to the start. A replay of the call will be available through Wednesday, August 3, 2011 by calling (888) 266-2081or(703) 925-2533, code #1540771.

Landec is a materials science company, leveraging its capability in polymer science and bio-application development in order to commercialize new products within a variety of life science fields, including food, agricultural, personal care and medical applications. With its Intelimer^(R) polymers, Landec is able to customize its proprietary polymer materials for each application through the manipulation of controlled release, temperature activation and biocompatibility properties. Landec’s subsidiary, Apio, has leveraged Landec’s BreatheWay^(R)membrane to become the leader in U.S. fresh-cut specialty vegetables. Landec Ag offers a full solution of seed coatings and enhancements that work with the latest genetic technologies to drive continuous improvements in crop yield. Landec has also commercialized dozens of personal care, industrial and adhesive products through its long-standing partner relationships. Through its subsidiary, Lifecore Biomedical, Landec is a premium supplier of hyaluronan-based biomaterials to the ophthalmic, orthopedic and veterinary markets worldwide. For more information about the Company visit Landec’s website at http://www.landec.com.

Except for the historical information contained herein, the matters discussed in this news release are forward-looking statements that involve certain risks and uncertainties that could cause actual results to differ materially, including such factors among others, as the timing and expenses associated with operations, the ability to achieve acceptance of the Company’s new products in the market place, the integration of Lifecore’s operations into the Company, the severity of the current economic slowdown, weather conditions that can affect the supply and price of produce, the amount and timing of research and development funding and license fees from the Company’s collaborative partners, the timing of regulatory approvals, the mix between domestic and international sales, and the risk factors listed in the Company’s Form 10-K for the fiscal year ended May 30, 2010 (See item 1A: Risk Factors) which may be updated in Part II. Item 1A Risk Factors in the Company’s Quarterly Reports on Form 10-Q. As a result of these and other factors, the Company expects to continue to experience significant fluctuations in quarterly operating results and there can be no assurance that the Company will remain consistently profitable. The Company undertakes no obligation to update or revise any forward-looking statements whether as a result of new developments or otherwise.

–Tables and Q&A to Follow–

LANDEC CORPORATION
FISCAL YEAR ENDED MAY 29, 2011
QUESTIONS AND ANSWERS

1. What are the details surrounding the Company’s expectations for fiscal year 2012?

For fiscal year 2012, we are projecting revenue growth of approximately 5% and net income growth of 30% to 40% over fiscal year 2011 net income adjusted for the impairment charge. The estimated range of earnings per share growth is outlined in the following table:

Due to timing of shipments at Lifecore and seasonality in Apio’s business, in fiscal year 2012 we expect that the EPS for the first quarter will be less than half of the second and third quarters and we expect EPS for the fourth quarter to be approximately 50% higher than the second and third quarters.

2. What is the projected cash flow from operations and the projected capital expenditures during fiscal year 2012?

Cash flow from operations is projected to increase 5% to 10% in fiscal year 2012 compared to fiscal year 2011 net cash flow from operations of $14.5 million.Capital expenditures, compared to fiscal year 2011 capital expenditures of $6.7 million, are projected to decrease by approximately 10% in fiscal year 2012.

3. Is the fresh-cut produce category returning to a growth mode?

We have seen some growth over the last few months and are hopeful this is a trend that will continue during our fiscal year 2012.Overall, consumers are not increasing their purchases at retail grocery chains as unemployment remains high and consumers are hesitant to spend.Price pressures on retailers remain very strong. The overall fresh-cut produce category, however, has experienced a 3% growth in volume in the last three months.This growth is coming mostly in the bagged fresh-cut vegetable category whereas the fresh-cut vegetable tray demand has yet to rebound.For our internal planning for fiscal year 2012, we expect year-over-year growth in our industry category to be about 3%.

4. Why is Landec projecting 5% revenue growth and could it be higher than 5%?

We are projecting that our value-added vegetable business will have higher growth than the 3% overall fresh-cut vegetable category growth but we are being cautious with our projections given the flat to negative growth of this category over the past two years and due to our difficult experience with bad weather this past year.We expect revenues in Apio’s export business to be flat to slightly lower after growing 12% in fiscal year 2011 and achieving record annual revenues of $61.7 million.In our Lifecore business, we are projecting revenue growth of nearly 10% after a year in which Lifecore’s revenues grew approximately 60%.It should be noted that some of Lifecore’s growth in fiscal year 2011 was associated with the management of inventory directed by certain Lifecore customers.Lastly, in our Technology Licensing business, we will be recognizing only a half year, or $2.7 million, of license fees from our licensing agreement with Monsanto compared to recognizing $5.4 million from this agreement in fiscal year 2011.If the fresh-cut vegetable category grows more than projected and if Lifecore’s new customers and new products begin selling sooner than planned, then we could exceed the 5% projected revenue growth.

5. When does the Monsanto license agreement expire and what occurs at that time?

The Monsanto license agreement expires on December 1, 2011.For fiscal year 2012, Landec will recognize $2.7 million in revenues and profits under the original terms of this agreement during the first six months of fiscal year 2012 compared to $5.4 million during fiscal year 2011.On or before December 1, 2011, Monsanto can exercise its option to purchase the rights to the exclusive field for $10.0 million.If Monsanto does not exercise its option, Monsanto must pay Landec Ag, Landec’s wholly-owned seed coating subsidiary, a $4 million termination fee and all rights to the Intellicoat(R)seed coating technology will revert to Landec. Since December 2006, the Company has been recognizing $200,000 of revenue per quarter as a result of this guaranteed termination fee.If Monsanto exercises its purchase option, we expect to enter into a new long-term supply agreement and/or a royalty/profit sharing agreement. If Monsanto terminates the agreement, Landec will evaluate its strategic options at that time.

6. Can you remind us about the investment in Windset that Apio made during the third quarter?

As mentioned earlier, during the third quarter of fiscal year 2011, Apio purchased $15 million of Senior Preferred Shares and $201 of Common Shares of Windset. The investment represents a 20.1% equity ownership by Apio in Windset. The Company adopted the fair value accounting option for its Windset investment effective with the date of its investment.

Landec’s management team views Windset as the most advanced hydroponic greenhouse operator in North America, where the demand for greenhouse grown varieties is rising rapidly.The hydroponic process uses no soil and a fraction of the water required in field production while benefiting from higher yields per acre without traditional weather-related risks.Windset has purchased 222 acres of land in the Santa Maria Valley of California near Apio’s operations, and is initially constructing 64 acres of indoor vegetable production for numerous varieties of hydroponically grown tomatoes to be completed this fall.

The non-voting Senior Preferred Shares yield an annual cash dividend of 7.5%. In addition, over the period of its minority interest ownership in Windset, Apio will recognize quarterly 20.1% of the change in the fair value of Windset and the amount will be reported as other income (expense). Since entering into the agreement, the Company has recognized a $662,000 increase in the fair value of its investment in Windset during the fourth quarter of fiscal year 2011 and dividends of $328,000.Also under the terms of the agreement, Apio is entitled to designate one of five members on the Board of Directors of Windset.

7. How is the roll-out of Chiquita’s Fresh & Ready Avocado program progressing?

The BreatheWay technology is performing as designed, maintaining shelf life for both retailers and consumers, and delivering fully ripened and ready-to-eat avocados.The program is delivering good revenue growth in a new category to Chiquita and providingdouble digit sales increases, compared to conventional avocados, to participating retailers.

8. What is happening in the area of corporate licensing deals?

We are exploring licensing deals in a number of areas which include drug delivery, agricultural and industrial coatings, temperature monitoring and food packaging.We are currently in early stage discussions with several different companies.These discussions range from R&D agreements to licensing/royalty agreements to supply agreements or some combination thereof.We believe the climate for large licensing deals is limited given the severity of the recession and the cutbacks large companies have made in their R&D budgets.We thus have become more focused on strategic partners who can successfully commercialize our technology in a timely way within well defined and more narrow exclusive fields. We will report more on licensing deals as they occur.

9. What new products and/or programs does the Company plan to introduce during fiscal year 2012?

We expect Windset to launch new BreatheWay packaged products for cucumbers and we plan to purchase tomatoes from Windset’s new Santa Maria operation for Apio’s vegetable tray business.In addition, we plan to introduce several new products and product lines at Apio plus offer expanded opportunities and offerings from Lifecore and enter into one or more licensing deals.

10. What are Landec’s priorities for the next 12 to 24 months?

Our goals are as follows: (1) grow Lifecore’s business by utilizing Lifecore’s strengths in ophthalmology, viscoelastic materials and sterile filling, (2) grow Apio’s food business and maintain Apio’s margins, (3) maintain a strong balance sheet, (4) find new investment opportunities for growth and margin enhancement, (5) support Chiquita with its roll-out plans for avocados, (6) support Monsanto with strong technical contributions, and (7) find new applications for BreatheWay packaging technology and Intelimer polymer technology that can be commercialized through Landec’s subsidiaries or third party partners. We see growth opportunities and we are expanding our investment in R&D to take advantage of these opportunities, while continuing the shift in revenue mix to higher margin businesses, as evidenced in the results for fiscal year 2011.

11. How do the pre-tax results by line of business for the three and twelve months ended May 29, 2011 compare with the same periods last year?

The results are as follows (unaudited and in thousands):

a) Apio’s Value-Added business includes revenues and gross profit from Apio Cooling LP. and Apio Packaging.

b) Apio’s Export business includes (1) its commission-based commodity export business, and (2) its commission-based domestic buy/sell business through the fourth quarter of fiscal year 2010.

c) Included in Tech. Licensing are the Intellicoat license fees from Monsanto and Landec Ag’s operating expenses beginning in the third quarter of fiscal year 2010.

d) Included in Other are net interest income/(expense), dividend income, non-operating income/(expense), income tax expense and impairment charges and acquisition costs.

SOURCE: Landec Corporation

Landec Corporation
Gregory S. Skinner, 650-261-3677
Vice President Finance and CFO ]]> http://landec.com/landec-corporation-reports-fiscal-year-2011-and-fourth-quarter-results/feed/ 0 http://landec.com/apio%e2%80%99s-clearly-fresh-bags-extend-the-life-of-fresh-produce/?utm_source=rss&utm_medium=rss&utm_campaign=apio%25e2%2580%2599s-clearly-fresh-bags-extend-the-life-of-fresh-produce http://landec.com/apio%e2%80%99s-clearly-fresh-bags-extend-the-life-of-fresh-produce/#comments Thu, 21 Apr 2011 19:17:52 +0000 johnmr1 http://landec.com/?p=4303 Read more]]> Clearly Fresh® Bags Extend Storage Live of Fresh Produce by Up to 50%. New from Apio, Inc. & utilizing patented BreatheWay® technology.

Guadalupe, CA (PRWEB) April 21, 2011

Clearly Fresh Bags

Apio, Inc., a wholly owned subsidiary of Landec Corporation (LNDC) and a leading producer of fresh-cut vegetable products, today introduced Clearly Fresh® bags, a new consumer product that extends the shelf life of fresh fruits and vegetables by as much as 50 percent. Beginning April 8, 2011, the bags will be available for purchase online at http://www.clearlyfreshbags.com.

Based on the company’s patented BreatheWay® packaging technology, Clearly Fresh bags are clear zip-closure 1.25 gallon bags with a breathable membrane and handy write-in space for product notes. The recyclable bags work with a variety of fruits and vegetables, allowing them to naturally create their own ideal atmosphere for natural storage life extension by allowing just the right amount of oxygen in, and more carbon dioxide out. These bags are highly effective with some of the most challenging and yet popular fresh items – including; apples, asparagus, avocados, bananas, berries, broccoli, carrots, cucumbers, lettuce, mangoes, and papayas.

“Consumers are interested buying healthy fresh produce items at the local market or farmers markets – Clearly Fresh bags will help them utilize more of what they bring home.” says Apio Director of Marketing Cali Tanguay. “Our storage solution uses the produce items own respiration to create a modified atmosphere in the bag. Thus it’s a great solution for organic or pesticide free produce as well as conventional grocery store produce.”

BreatheWay has a successful 15-year track record in the commercial shipment of fruits and vegetables. It’s used in the packaging of our Eat Smart fresh cut vegetable line nationwide, Chiquita Brands uses it for shipment of select products, and the technology has been used in research and development with the U.S. Navy for use onboard ships and to forward locations.

“Using these bags is easy. Consumers simply place individual types of produce in a bag as soon as they return from shopping, and store as usual—lettuce in the refrigerator, bananas on the counter,” says Tanguay. “The bags’ large size allows for the storage of an entire bunch of bananas or a head of lettuce with room to spare.”

A package of 10 re-useable and recyclable bags will be priced at $3.99. In the coming months, the bags will also be available at select retail grocery outlets around the country.

Apio encourages consumers to contact us via our website http://www.clearlyfreshbags.com with questions or to request an easy-to-follow in-home comparison trial. The proof will be clear to see!

About Apio, Inc.
Apio, Inc., founded in 1979 by five growers of celery in the Santa Maria Valley in the central coastal region of California, and named “Apio” for “celery” in Spanish, is today the leader in processing and marketing fresh-cut specialty vegetables in the U.S. Headquartered in Guadalupe, California, Apio sells its specialty vegetables and party tray products under the Eat Smart® brand. Apio’s fresh-cut specialty vegetable products are unique in that they utilize the Landec Corporation BreatheWay® proprietary breathable packaging technology to extend the shelf life of specific produce. Landec Corporation (NYSE: LNDC), a polymer science and specialty materials company based in Menlo Park, California, acquired Apio in 1999. For more information about the Company visit Apio’s website at http://www.apioinc.com.