MENLO PARK, Calif., Jan. 2, 2013 (GLOBE NEWSWIRE) -- Landec Corporation (Nasdaq:LNDC), today reported that the Company has restated its financial statements for the first quarter of fiscal year 2013 to reflect a $2.9 million increase in the previously reported first quarter fiscal year 2013 fair market value of Windset Holdings 2010 Ltd. ("Windset").
In December 2012, during the second quarter review of the most recently updated fair market value appraisal of our minority equity investment in Windset for fiscal year 2013, the Company became aware that it had miscalculated the fair market value of Windset at the end of its first quarter of fiscal year 2013. This miscalculation has no impact on our projected annual fair market value of Windset which has been independently valued. As a result, in the first fiscal quarter ended August 26, 2012, the Company understated the recorded value of its Windset investment, and the related investment income, by $2.9 million, and understated its net income by $1.8 million, or $0.07 per share. Therefore, the Company has today filed with the Securities and Exchange Commission an amendment to its Form 10-Q for the first quarter of fiscal year 2013 which contains its restated financial statements for that period. The restated financial statements for the first quarter of fiscal year 2013 reflect that the fair market value of its Windset investment has been increased by $2.9 million and net income by $1.8 million, net of related income taxes of $1.1 million. As a result, earnings per share for the first quarter of fiscal year 2013 have increased to $0.17 per share from the previously reported $0.10 per share.
Gary Steele, Landec's Chairman and CEO, commented, "As reported today in the Second Quarter and First Half Fiscal Year Earnings Release for fiscal year 2013, Landec's share of the increase in Windset's fair market value for fiscal year 2013 is projected to be $6.5 million, up from $5.8 million recognized in fiscal year 2012, and up from $6.0 million previously estimated by Landec for fiscal year 2013 before the new appraisal was completed by our outside independent appraiser. It was determined during the second quarter review of the appraisal that the Company incorrectly recorded the fair market value of Windset at the end of its first quarter of fiscal year 2013. As a result, $2.9 million of the annual fair market value that the Company had originally planned to record in its second and third fiscal quarters should have been recorded during its first fiscal quarter of fiscal year 2013. The Company has updated its policies and controls surrounding its accounting for the change in the fair market value of Windset to ensure that in the future such changes are recorded properly each quarter."