Landec 1Q profit falls 23 pct, but tops view

Landec 1Q profit falls on slumping economy and consumer spending but beats estimates

• On 4:53 pm EDT, Tuesday September 29, 2009

MENLO PARK, Calif. (AP) -- Landec Corp., which makes agricultural and food packaging products, said Tuesday that its fiscal 2010 first-quarter profit fell 23 percent on the slumping U.S. economy and decline in consumer spending.

Net income for the period totaled $2.2 million, or 8 cents per share, down from $2.8 million, or 11 cents per share, during the year-ago period. However, that beat Wall Street's average estimate by a penny per share, according to a Thomson Reuters poll.

Revenue dropped 15 percent to $60.9 million from $71.8 million a year earlier. Analysts had expected $61 million in revenue.

"Despite the recession, our fresh-cut vegetable business continues to gain market share and outperform the overall industry category," Gary Steele, Landec's chairman and chief executive, said in a statement.

The company noted that the first quarter of fiscal year 2010 had 13 weeks of operations while the first quarter of fiscal year 2009 had 14 weeks.

Landec shares lost 27 cents, or 4.1 percent, to close at $6.33 on Tuesday before the results were announced.