Landec Corporation (NASDAQ: LNDC) today reported results for the first quarter of fiscal year 2013 ended August 26, 2012. Revenues increased 39% to $102.1 million compared to revenues of $73.3 million for the first quarter a year ago. Net income increased 40% to $2.5 million or $0.10 per share compared to $1.8 million or $0.07 per share for the first quarter of last year.
The revenue growth of $28.8 million during the first quarter of fiscal year 2013 compared to the first quarter of last year was due to (1) $19.9 million of revenues from GreenLine Holding Company, (“GreenLine”) which was acquired by Apio, Inc., our specialty packaged food subsidiary, on April 23, 2012, (2) a $5.4 million increase in revenues in Apio’s non-GreenLine value-added businesses, which includes the Apio fresh-cut specialty packaged vegetable business, Apio Cooling and Apio Packaging, (3) a $4.0 million increase in Apio’s export revenues due to a 3% increase in export unit volume sales and favorable pricing, and (4) an $851,000 increase in revenues at Lifecore Biomedical, Inc., our biomaterials subsidiary, due primarily to a shipment of product in the first quarter that was planned for the second quarter. The first quarter growth of $5.4 million in Apio’s non-GreenLine value-added businesses resulted primarily from a year-over-year 22% increase in unit volume sales of fresh-cut specialty packaged products due to new product offerings, new distribution gains and overall growth in the fresh-cut vegetable category. These increases in revenue were partially offset by a $1.3 million decrease in revenues in our Technology Licensing business due to the termination of the Monsanto license agreement at the end of the second quarter of fiscal year 2012.
For the first quarter of fiscal year 2013, net income increased $727,000, or 40%, due to a $2.9 million net increase in Apio’s pre-tax income. The increases in Apio’s pre-tax income were comprised of: (1) $1.2 million from GreenLine, (2) a $1.2 million increase from Apio’s non-GreenLine value-added and export businesses, and (3) a $1.3 million increase in the fair market value of our Windset investment compared to the increase in Windset’s fair market value during the first quarter of last year. These increases in Apio’s pre-tax income were partially offset by new amortization expenses associated with the acquisition of GreenLine and increased variable operating expenses from the increase in non-GreenLine revenues at Apio. The net Apio increase in pre-tax income of $2.9 million was partially offset by: (1) a $1.3 million reduction in license fees from the termination of the Monsanto license agreement, (2) a $593,000 decrease in pre-tax income at Lifecore due primarily to the timing of production and operating expenses within the fiscal year, and (3) a $382,000 increase in the income tax expense.
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