Landec Corporation Reports Fiscal Fourth Quarter and Full Year 2016 Results

Fourth Quarter Gross Profit Increased 22% and Gross Margin Improved 300 Basis Points

In Fiscal 2017 Company Expects Net Income Increase of 50% to 70%

MENLO PARK, Calif., July 26, 2016 (GLOBE NEWSWIRE) — Landec Corporation (NASDAQ:LNDC), a leading developer and marketer of innovative and proprietary products for healthy living applications in the food and biomaterials markets, reported results for the fiscal 2016 fourth quarter and fiscal year ended May 29, 2016.

“Lifecore Biomedical, Inc. had a very strong fourth quarter with revenues increasing 50% and operating income increasing 137% compared to the fourth quarter of last year, driven by increased fermentation and product development revenues,” stated Molly Hemmeter, Landec’s President and CEO. “At Apio, Inc., our food subsidiary, gross margin in the fourth quarter increased 50 basis points to 12.2% due to a favorable product mix that nearly offset the gross profit impact from lower revenues and from $3.0 million of excess costs related to the produce shortages early in the quarter. As we enter fiscal 2017, based on current weather patterns, we believe these sourcing issues should be behind us and we look forward to stronger overall Apio results in fiscal 2017.”

Summary of Fourth Quarter 2016 Results Compared to Fourth Quarter of 2015

Revenues increased 1% to $135.3 million
Gross profit increased 22% to $22.8 million leading to a gross margin increase of 300 basis points to 16.8%
Operating income increased 14% to $7.1 million
Net income increased 13% to $4.7 million or $0.17 per share

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