UPDATE 1-Landec Q1 net income falls marginally on higher tax
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Sept 30 (Reuters) - Landec Corp (LNDC.O), a maker of temperature-activated and other specialty polymer products, reported a marginal drop in its first-quarter net income, hurt mainly by higher income tax expense.
Operating income for the quarter ended Aug. 31 rose to $4.6 million from $3.6 million a year ago.
The company posted a netincome of $2.8 million, or 11 cents a share, compared with $3.1 million, or 11 cents per share a year ago.
Revenue rose 15 percent to $71.8 million.
Analysts on average had expected earnings of 10 cents a share, before special items, on revenue of $66.7 million, according to Reuters Estimates.
The company said income tax expense for the quarter rose 62 percent to $1.9 million.
For the full year 2009, the company expects revenue to grow by 10 percent. It also expects pre-tax income to grow 15 percent to 20 percent from fiscal 2008.
The company said it witnessed a slowdown in the growth of its fresh-cut produce category but it is too early to determine if this slowdown will continue.
Shares of the company closed at $8.19 Tuesday on Nasdaq. (Reporting by Mary Meyase in Bangalore; Editing by Gopakumar Warrier)
