"Gross profit in Apio's value-added vegetable business was lower in the first quarter of fiscal 2014 compared to the first quarter last year as a result of an increase in lower margin food service sales and higher than expected raw produce sourcing costs from lower yields due to heavy rains in the Midwest and along the East Coast and cooler than normal temperatures in California."Other operating highlights for the first quarter included Apio launching additional product offerings in its family of new superfood products and the company continuing to benefit from our partner Windset's 64-acres of newly constructed hydroponic greenhouses in Santa Maria, California. Windset has already begun harvesting from the first 32 acres (Phase 3) of its expansion and expects to begin harvesting from the next 32 acres (Phase 4) within two months delivering both phases several months ahead of plan. The accelerated harvesting of both phases has been incorporated into Windset's revised projections used to calculate the change in the fair market value of our investment in Windset for both the first quarter of fiscal 2014 and the estimate for all of fiscal 2014. This expansion has doubled Windset's capacity in California to 128 acres or 6 million square feet of greenhouse operations." Fiscal First Quarter 2014 Results Revenue in the first quarter of fiscal 2014 increased by 7%, or $7.4 million, to $109.5 million, compared to $102.1 million in the year-ago quarter, with the improvement primarily due to a $10.8 million, or 16%, increase in revenues in Apio's value-added businesses (which includes Apio's fresh-cut specialty packaged vegetable business, Apio Cooling and Apio Packaging), and a $614,000, or 8%, increase in revenues at Lifecore as a result of increased sales to existing customers. Apio's 16% growth in its value-added revenues in the first quarter compared to the prior year quarter was primarily due to a 13% increase in sales volumes. The increase in value-added revenues in the first quarter was partially offset by an expected $4.0 million decrease in revenues in Apio's export business due to a decline in volume sales primarily resulting from Indonesian import quotas on fruit.