Landec Corporation (NASDAQ:LNDC) shares fell Friday after the company reported a wider-than-expected loss for its second quarter.
The Santa Maria, Calif.-based health and wellness company reported Thursday revenues of $142.6 million increased 14% year over year, driven by a 48% and 10% increase in Lifecore and Curation Foods revenues, respectively
Gross profit decreased 8% year over year, Lifecore gross profit increased 52% year over year, partially offsetting Curation Foods’ decrease
Lifecore net income increased 166% year-over-year, partially offsetting Curation Foods’ net loss
Net income decreased during the second quarter of fiscal 2020 compared to the second quarter of fiscal 2019 due to: (1) a $1.4-million decrease in gross profit, (2) a $1.9 million increase in operating expenses resulting from the addition of Yucatan Foods, (3) a $1.4-million increase in interest expense due to the incremental debt associated with the acquisition of Yucatan Foods, (4) a $0.2 million increase in the fair market value of the Company’s Windset investment compared to a $0.6 million increase during the fiscal second quarter of last year and (5) restructuring fees and non-recurring charges of $2.4 million or $0.07 per share, net of tax.
Said CEO Albert Bolles, “Our Lifecore business had another tremendous quarter with impressive year-over-year growth in revenues, operating income and EBITDA. Lifecore continues to demonstrate success in moving customers through the product development lifecycle to commercialization and advancing its deep pipeline of development customers that will drive long-term, profitable growth.”
Landec shares crumbled 87 cents, or 7.8%, to $10.30