Food technology specialist Landec Corporation has reported results for the first nine months and third quarter of the fiscal year 2009, with year-on-year net income falling during both periods.
Through the first nine months, revenue increased 1.4 per cent to hit US$183.7m, while net income dropped to US$5.9m compared with US$10.2m last year.
In the third-quarter of the year, revenues fell to US$53.9m from US$59.6m in the same period of 2008, while net income fell from US$4m to US$1.5m.
'For the first nine months of fiscal year 2009, we have increased revenues, generated net income and generated cash flow from operations,' said group chairman and CEO Gary Steele. 'Since November 2008, we have been feeling the impact from the slumping US economy and the decline in consumer spending. However, we have held and slightly improved our gross margin and operating margin during the third quarter relative to the second quarter.'
Success during the period came in the shape of the group's fresh-cut vegetable business, which outperformed the overall industry category, according to Mr Steele. Year-on-year sales in the category for the nine-month and third-quarter periods fell 13 per cent and 8 per cent respectively on the previous year, while Landec registered drops of just 5 per cent and 1 per cent.
Greg Kinnear, Landec's chief financial officer, said that the group is anticipating a full-year fall in revenue due to the slowing economy, although uncertainty remains as to how much it will be affected.
'We expect our fourth-quarter revenues to follow the normal seasonal pattern resulting in a decrease of about 5 per cent from third-quarter revenues,' he said. 'In our fourth quarter we expect operating income to be higher than in our third quarter and we expect to generate positive cash-flow from operations.
'Our balance sheet remains very strong, with no debt and with a record level of nearly US$64m of cash and marketable securities,' Mr Kinnear added.
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