Landec Corporation reported unaudited consolidated earnings results for the second quarter and first six months ended November 24, 2013. Revenue in the second quarter of fiscal 2014 increased by 5%, or $5.4 million, to $120.0 million, compared to $114.7 million in the year-ago quarter. The improvement was primarily due to a $9.5 million, or 12%, 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 $1.0 million, or 13%, increase in revenues at Lifecore as a result of increased sales to existing customers, as well as from development revenue associated with new aseptic filling opportunities. Net income in the second quarter of fiscal 2014 was $3.5 million or $0.13 per share compared to $8.9 million or $0.34 per share in the year-ago quarter. Net income during the second quarter of last fiscal year was increased by a $3.9 million, or $0.15 per share, one-time earn-out adjustment associated with the acquisition of GreenLine Foods. The decrease in net income in the second quarter was primarily due to a $4.4 million reduction in gross profit because of severe produce shortages in Apio's value-added vegetable business. Operating income was $3.176 million against $11.093 million a year ago. Net income before taxes was $5.367 million against $11.892 million a year ago. Net income available to common stockholders was $3.451 million against $8.913 million a year ago.

Revenue in the first six months of fiscal 2014 increased by 6%, or $12.8 million, to $229.5 million, compared to $216.7 million in the same period last year. The improvement was primarily due to a $20.3 million, or 14%, increase in revenues from Apio's value-added businesses and a $1.7 million, or 11%, increase in revenues at Lifecore resulting from increased sales to existing customers and from development project revenue. Net income in the first six months of fiscal 2014 was $8.2 million or $0.30 per share compared to $13.3 million or $0.50 per share in the first six months of last year. Net income in the first six months of last fiscal year was increased by $3.9 million, or $0.15 per share, due to a one-time earn-out adjustment associated with the acquisition of GreenLine Foods. The decrease in net income in the first six months of fiscal 2014 was primarily due to a $6.8 million reduction in gross profit because of severe produce shortages in Apio's value-added vegetable business. For the first six months of fiscal 2014, Landec generated $4.3 million in cash flow from operations and purchased $7.7 million of capital equipment for capacity expansion at both Apio and Lifecore. The Company also paid down debt by $6.1 million during the first six months of this year. The Company had $27.7 million available under its lines of credit as of November 24, 2013. Operating income was $5.152 million against $14.096 million a year ago. Net income before taxes was $12.653 million against $18.919 million a year ago. Net income available to common stockholders was $8.203 million against $13.279 million a year ago.

The company continues to expect revenues to meet or exceed its original guidance of 6% growth for fiscal 2014 and expects net income to be flat to up 5% compared to fiscal 2013, after excluding the $3.9 million earn out adjustment in fiscal 2013, barring any additional significant negative weather-related events beyond normal historical levels during the remainder of fiscal 2014.