Gross Margin Improves 270 Basis Points and Operating Income Increases 39%
Company Reiterates Full Year Fiscal 2017 Guidance
MENLO PARK, Calif., Sept. 27, 2016 (GLOBE NEWSWIRE) — Landec Corporation (NASDAQ:LNDC), a leading innovator of diversified health and wellness solutions within the packaged food and biomaterial markets, reported results for the fiscal 2017 first quarter ended August 28, 2016.
“For the first quarter, our consolidated gross margin increased 270 basis points to 16.0% and net income increased 12% to $0.12 per share compared to the first quarter of last year. These results are in line with our strategy to innovate new products and continually shift our product mix to higher value items,” commented Molly Hemmeter, Landec’s President and CEO. “As expected, revenues for the first quarter decreased 2% compared to the first quarter of last year primarily due to a strategic decision to reduce low margin business in our packaged fresh vegetables business during the second half of fiscal 2016. However, our efforts to shift away from non-strategic low margin business and to innovate and grow higher margin products as a larger percent of our business is resulting in continued improvement of gross margin, operating income and net income, and has us on target to meet our stated performance goals for fiscal 2017.”
Summary of First Quarter 2017 Results Compared to First Quarter of 2016
- Revenues decreased 2% to $132.4 million
- Gross profit increased 18% to $21.1 million
- Operating income increased 39% to $5.5 million
- Net income increased 12% to $3.3 million or $0.12 per share