x
|
ANNUAL
REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE
ACT OF
1934
|
o
|
TRANSITION
REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE
ACT OF
1934
|
California
|
94-3025618
|
(State
or other jurisdiction of
|
(IRS
Employer
|
incorporation
or organization)
|
Identification
Number)
|
Title
of each class
|
Name
of each exchange on which registered
|
Common
Stock
|
The
NASDAQ Stock Market, Inc.
|
Large
Accelerated Filer o
|
Accelerated
Filer x
|
Non
Accelerated Filer o
|
Item
No.
|
Description
|
Page
|
||
Part
I
|
||||
1.
|
Business
|
4
|
||
1A.
|
Risk
Factors
|
15
|
||
|
||||
1B.
|
Unresolved
Staff Comments
|
21
|
||
|
||||
2.
|
Properties
|
22
|
||
|
||||
3.
|
Legal
Proceedings
|
22
|
||
|
||||
4.
|
Submission
of Matters to a Vote of Security Holders
|
22
|
||
|
||||
Part
II
|
|
|||
5.
|
Market
for Registrant’s Common Equity, Related Stockholder Matters and Issuer
Purchases of Equity Securities
|
23
|
||
|
||||
6.
|
Selected
Financial Data
|
24
|
||
|
||||
7.
|
Management’s
Discussion and Analysis of Financial Condition and Results of
Operations
|
26
|
||
7A.
|
Quantitative
and Qualitative Disclosures about Market Risk
|
39
|
||
8.
|
Financial
Statements and Supplementary Data
|
39
|
||
9.
|
Changes
in and Disagreements with Accountants on Accounting and Financial
Disclosure
|
39
|
||
9A.
|
Controls
and Procedures
|
40
|
||
9B.
|
Other
Information
|
41
|
||
|
||||
Part
III
|
|
|||
10.
|
Directors
and Executive Officers of the Registrant
|
42
|
||
|
||||
11.
|
Executive
Compensation
|
42
|
||
|
||||
12.
|
Security
Ownership of Certain Beneficial Owners and Management and Related
Stockholder Matters
|
42
|
||
|
||||
13.
|
Certain
Relationships and Related Transactions, and Director
Independence
|
42
|
||
|
||||
14.
|
Principal
Accountant Fees and Services
|
42
|
||
|
||||
Part
IV
|
|
|||
15.
|
Exhibits
and Financial Statement Schedules
|
43
|
·
|
High
Permeability.
Landec's BreatheWay
packaging technology
is
designed to permit transmission of oxygen and carbon dioxide at 300
times
the rate of conventional packaging films. The Company believes that
these
higher permeability levels will facilitate the packaging diversity
required to market many types of fresh-cut and whole produce.
|
·
|
Ability
to Adjust Oxygen and Carbon Dioxide Permeability. BreatheWay
packaging can
be tailored with carbon dioxide to oxygen transfer ratios ranging
from 1.0
to 12.0 and selectively transmit oxygen and carbon dioxide at optimum
rates to sustain the quality and shelf life of packaged
produce.
|
·
|
Temperature
Responsiveness.
Landec has developed breathable membranes that can be designed to
increase
or decrease permeability in response to environmental temperature
changes.
The Company has developed packaging that responds to higher oxygen
requirements at elevated temperatures but is also reversible, and
returns
to its original state as temperatures decline. The temperature
responsiveness of these membranes allows ice to be removed from the
distribution system which results in numerous benefits. These benefits
include (1) a substantial decrease in freight cost, (2) reduced risk
of
contaminated produce because ice can be a carrier of micro organisms,
(3)
the elimination of expensive waxed cartons that cannot be recycled,
and
(4) the potential decrease in work related accidents due to melted
ice.
|
·
|
Value-Added
Supplier:
Apio has structured its business as a marketer and seller of fresh-cut
and
whole value-added produce. It is focused on selling products under
its Eat
Smart® brand and other brands for its fresh-cut and whole value-added
products. As retail grocery and club store chains consolidate, Apio
is
well positioned as a single source of a broad range of products.
|
·
|
Reduced
Farming Risks:
Apio reduces its farming risk by not taking ownership of farmland,
and
instead, contracts with growers for produce. The year-round sourcing
of
produce is a key component to the fresh-cut and whole value-added
processing business.
|
·
|
Lower
Cost Structure:
Apio has strategically invested in the rapidly growing fresh-cut
and whole
value-added business. Apio’s 96,000 square foot value-added processing
plant, which was recently expanded from 60,000 square feet, is automated
with state-of-the-art vegetable processing equipment. Virtually all
of
Apio’s value-added products utilize Apio’s proprietary BreatheWay
packaging technology.
Apio’s strategy is to operate one large central processing facility in
one
of California’s largest, lowest cost growing regions (Santa Maria Valley)
and use packaging technology to allow for the nationwide delivery
of fresh
produce products.
|
·
|
Export
Capability:
Apio is uniquely positioned to benefit from the growth in export
sales to
Asia and Europe over the next decade with its export business, Cal-Ex.
Through Cal-Ex, Apio is currently one of the largest U.S. exporters
of
broccoli to Asia and is selling its iceless products to Asia
using
proprietary BreatheWay packaging
technology.
|
·
|
Expanded
Product Line Using Technology:
Apio, through the use of its BreatheWay
packaging technology,
is introducing on average fifteen new value-added products each year.
These new product offerings range from various sizes of fresh-cut
bagged
products, to vegetable trays, to whole produce, to a meal line of
products. During fiscal year 2007, Apio introduced 15 new
products.
|
·
|
the
seasonality of our supplies;
|
·
|
our
ability to process produce during critical harvest
periods;
|
·
|
the
timing and effects of ripening;
|
·
|
the
degree of perishability;
|
·
|
the
effectiveness of worldwide distribution
systems;
|
·
|
total
worldwide industry volumes;
|
·
|
the
seasonality of consumer demand;
|
·
|
foreign
currency fluctuations; and
|
·
|
foreign
importation restrictions and foreign political
risks.
|
·
|
price;
|
·
|
safety;
|
·
|
efficacy;
|
·
|
reliability;
|
·
|
conversion
costs;
|
·
|
marketing
and sales efforts; and
|
·
|
general
economic conditions affecting purchasing
patterns.
|
· |
fines,
injunctions, civil penalties, and
suspensions,
|
· |
withdrawal
of regulatory approvals,
|
· |
product
recalls and product seizures, including cessation of manufacturing
and
sales,
|
· |
operating
restrictions, and
|
· |
criminal
prosecution.
|
·
|
regulatory
approval process,
|
·
|
government
controls,
|
·
|
export
license requirements,
|
·
|
political
instability,
|
·
|
price
controls,
|
·
|
trade
restrictions,
|
·
|
changes
in tariffs, or
|
·
|
difficulties
in staffing and managing international operations.
|
·
|
technological
innovations applicable to our
products,
|
·
|
our
attainment of (or failure to attain) milestones in the commercialization
of our technology,
|
·
|
our
development of new products or the development of new products by
our
competitors,
|
·
|
new
patents or changes in existing patents applicable to our products,
|
·
|
our
acquisition of new businesses or the sale or disposal of a part of
our
businesses,
|
·
|
development
of new collaborative arrangements by us, our competitors or other
parties,
|
·
|
changes
in government regulations applicable to our business,
|
·
|
changes
in investor perception of our business,
|
·
|
fluctuations
in our operating results and
|
·
|
changes
in the general market conditions in our industry.
|
Location
|
Business
Segment
|
Ownership
|
Facilities
|
Acres
of Land
|
Lease
Expiration
|
|||||
Menlo
Park, CA
|
Other
|
Leased
|
10,400
square feet of office and laboratory space
|
—
|
12/31/09
|
|||||
West
Lebanon, IN
|
Agricultural
Seed Technology
|
Owned
|
4,000
square feet of warehouse and manufacturing space
|
—
|
—
|
|||||
Oxford,
IN
|
Agricultural
Seed Technology
|
Leased
|
13,400
square feet of laboratory and manufacturing space
|
—
|
6/30/08
|
|||||
Guadalupe,
CA
|
Food
Products Technology
|
Owned
|
142,000
square feet of office space, manufacturing and cold
storage
|
17.7
|
—
|
|||||
Arroyo
Grande, CA
|
Food
Products Technology
|
Leased
|
1,100
square feet of office space
|
—
|
6/30/08
|
Fiscal
Year Ended May 27, 2007
|
High
|
Low
|
|||||
4th
Quarter ending May 27, 2007
|
$
|
15.13
|
$
|
12.01
|
|||
|
|||||||
3rd
Quarter ending February 25, 2007
|
$
|
13.80
|
$
|
9.49
|
|||
2nd
Quarter ending November 26, 2006
|
$
|
11.32
|
$
|
9.03
|
|||
1st
Quarter ending August 27, 2006
|
$
|
11.11
|
$
|
7.96
|
Fiscal
Year Ended May 28, 2006
|
High
|
Low
|
|||||
4th
Quarter ending May 28, 2006
|
$
|
9.65
|
$
|
6.71
|
|||
|
|||||||
3rd
Quarter ending February 26, 2006
|
$
|
7.84
|
$
|
6.23
|
|||
|
|||||||
2nd
Quarter ending November 27, 2005
|
$
|
8.01
|
$
|
6.32
|
|||
|
|||||||
1st
Quarter ending August 28, 2005
|
$
|
6.98
|
$
|
6.66
|
Year
Ended May 27, 2007
|
Year
Ended May 28, 2006
|
Year
Ended May 29, 2005
|
Year
Ended May 30, 2004
|
Seven
Months Ended
May
25, 2003
|
Seven
Months Ended
June
2, 2002 (unaudited)
|
Year
Ended October 27, 2002
|
||||||||||||||||
Statement
of Operations Data:
|
||||||||||||||||||||||
(in
thousands)
|
||||||||||||||||||||||
Revenues:
|
||||||||||||||||||||||
Product
sales
|
$
|
201,892
|
$
|
225,404
|
$
|
201,020
|
$
|
185,664
|
$
|
98,689
|
$
|
96,513
|
$
|
152,958
|
||||||||
Service
revenues
|
3,539
|
3,725
|
3,704
|
5,791
|
12,784
|
15,882
|
26,827
|
|||||||||||||||
License
fees
|
4,013
|
2,398
|
88
|
88
|
357
|
1,274
|
2,330
|
|||||||||||||||
R&D
and royalty revenues
|
1,054
|
426
|
418
|
549
|
429
|
402
|
1,040
|
|||||||||||||||
Total
revenues
|
210,498
|
231,953
|
205,230
|
192,092
|
112,259
|
114,071
|
183,155
|
|||||||||||||||
Cost
of revenue:
|
||||||||||||||||||||||
Cost
of product sales
|
175,252
|
188,904
|
170,359
|
158,911
|
82,339
|
80,680
|
131,352
|
|||||||||||||||
Cost
of service revenue
|
2,860
|
3,005
|
2,899
|
3,390
|
9,216
|
12,505
|
20,463
|
|||||||||||||||
Total
cost of revenue
|
178,112
|
191,909
|
173,258
|
162,301
|
91,555
|
93,185
|
151,815
|
|||||||||||||||
Gross
profit
|
32,386
|
40,044
|
31,972
|
29,791
|
20,704
|
20,886
|
31,340
|
|||||||||||||||
Operating
costs and expenses:
|
||||||||||||||||||||||
Research
and development
|
3,074
|
3,042
|
2,543
|
3,452
|
2,118
|
2,018
|
3,532
|
|||||||||||||||
Selling,
general and administrative
|
21,616
|
27,979
|
23,412
|
22,284
|
15,185
|
16,293
|
26,114
|
|||||||||||||||
Income
from sale of FCD
|
(22,669
|
)
|
—
|
—
|
—
|
—
|
—
|
—
|
||||||||||||||
Exit
domestic commodity vegetable business
|
—
|
—
|
—
|
—
|
1,095
|
—
|
—
|
|||||||||||||||
Total
operating costs and expenses
|
2,021
|
31,021
|
25,955
|
25,736
|
18,398
|
18,311
|
29,646
|
|||||||||||||||
Operating
profit
|
30,365
|
9,023
|
6,017
|
4,055
|
2,306
|
2,575
|
1,694
|
|||||||||||||||
Interest
income
|
1,945
|
633
|
214
|
164
|
144
|
177
|
247
|
|||||||||||||||
Interest
expense
|
(251
|
)
|
(452
|
)
|
(414
|
)
|
(811
|
)
|
(642
|
)
|
(1,097
|
)
|
(1,551
|
)
|
||||||||
Minority
interest expense
|
(412
|
)
|
(529
|
)
|
(411
|
)
|
(537
|
)
|
(235
|
)
|
(224
|
)
|
(525
|
)
|
||||||||
Other
(expense)/income, net
|
(2
|
)
|
(24
|
)
|
(4
|
)
|
29
|
218
|
71
|
336
|
||||||||||||
Income
from continuing operations before taxes
|
31,645
|
8,651
|
5,402
|
2,900
|
1,791
|
1,502
|
201
|
|||||||||||||||
Income
tax expense
|
(2,456
|
)
|
—
|
—
|
—
|
—
|
—
|
—
|
||||||||||||||
Income
from continuing operations
|
29,189
|
8,651
|
5,402
|
2,900
|
1,791
|
1,502
|
201
|
|||||||||||||||
Discontinued
operations:
|
||||||||||||||||||||||
Loss
from discontinued operations
|
—
|
—
|
—
|
—
|
—
|
—
|
—
|
|||||||||||||||
Loss
on disposal of operations
|
—
|
—
|
—
|
—
|
—
|
—
|
(1,688
|
)
|
||||||||||||||
Loss
from discontinued operations
|
—
|
—
|
—
|
—
|
—
|
—
|
(1,688
|
)
|
||||||||||||||
Net
income (loss)
|
$
|
29,189
|
$
|
8,651
|
$
|
5,402
|
$
|
2,900
|
$
|
1,791
|
$
|
1,502
|
$
|
(1,487
|
)
|
|||||||
Net
income (loss)
|
$
|
29,189
|
$
|
8,651
|
$
|
5,402
|
$
|
2,900
|
$
|
1,791
|
$
|
1,502
|
$
|
(1,487
|
)
|
|||||||
Dividends
on preferred stock
|
—
|
—
|
—
|
(464
|
)
|
(219
|
)
|
(202
|
)
|
(412
|
)
|
|||||||||||
Net
income (loss) applicable to common shareholders
|
$
|
29,189
|
$
|
8,651
|
$
|
5,402
|
$
|
2,436
|
$
|
1,572
|
$
|
1,300
|
$
|
(1,899
|
)
|
Year
Ended
May
27,
|
Year
Ended May
28,
|
Year
Ended
May
29,
|
Year
Ended
May
30,
|
Seven
Months Ended
May
25,
|
Seven
Months
Ended
June
2,
2002
|
Year
Ended
October
27,
|
||||||||||||||||
2007
|
2006
|
2005
|
2004
|
2003
|
(Unaudited)
|
2002
|
||||||||||||||||
Statements
of Operations Data:
|
||||||||||||||||||||||
(in
thousands, except per share data)
|
||||||||||||||||||||||
Basic
net income (loss) per share:
|
||||||||||||||||||||||
Continuing
operations
|
$
|
1.16
|
$
|
0.35
|
$
|
0.23
|
$
|
0.11
|
$
|
0.08
|
$
|
0.07
|
$
|
(0.01
|
)
|
|||||||
Discontinued
operations
|
—
|
—
|
—
|
—
|
—
|
—
|
(0.09
|
)
|
||||||||||||||
Basic
net income (loss) per share
|
$
|
1.16
|
$
|
0.35
|
$
|
0.23
|
$
|
0.11
|
$
|
0.08
|
$
|
0.07
|
$
|
(0.10
|
)
|
|||||||
Diluted
net income (loss) per share:
|
||||||||||||||||||||||
Continuing
operations
|
$
|
1.07
|
$
|
0.32
|
$
|
0.21
|
$
|
0.12
|
$
|
0.07
|
$
|
0.06
|
$
|
(0.01
|
)
|
|||||||
Discontinued
operations
|
—
|
—
|
—
|
—
|
—
|
—
|
(0.09
|
)
|
||||||||||||||
Diluted
net income (loss) per share
|
$
|
1.07
|
$
|
0.32
|
$
|
0.21
|
$
|
0.12
|
$
|
0.07
|
$
|
0.06
|
$
|
(0.10
|
)
|
|||||||
Shares
used in per share computation:
|
||||||||||||||||||||||
Basic
|
25,260
|
24,553
|
23,705
|
21,396
|
20,948
|
17,777
|
18,172
|
|||||||||||||||
Diluted
|
26,558
|
25,657
|
24,614
|
23,556
|
22,626
|
21,082
|
18,172
|
|
May
27,
2007 |
May
28,
2006
|
May
29,
2005 |
May
30,
2004 |
May
25,
2003 |
October
27,
2002
|
|||||||||||||
Balance
Sheet Data:
(in
thousands)
|
|||||||||||||||||||
Cash
and cash equivalents
|
$
|
62,556
|
$
|
15,164
|
$
|
7,426
|
$
|
4,966
|
$
|
3,610
|
$
|
7,813
|
|||||||
Total
assets
|
141,368
|
119,025
|
100,075
|
93,007
|
96,887
|
107,803
|
|||||||||||||
Debt
|
28
|
2,018
|
3,088
|
8,996
|
13,494
|
17,543
|
|||||||||||||
Convertible
preferred stock
|
—
|
—
|
—
|
—
|
5,531
|
14,461
|
|||||||||||||
Accumulated
deficit
|
(19,332
|
)
|
(41,239
|
)
|
(49,890
|
)
|
(55,292
|
)
|
(57,728
|
)
|
(59,300
|
)
|
|||||||
Total
shareholders' equity
|
$
|
110,228
|
$
|
85,049
|
$
|
72,060
|
$
|
61,549
|
$
|
57,903
|
$
|
55,963
|
Fiscal
Year ended May 27, 2007
|
Fiscal
Year ended May 28, 2006
|
Change
|
||||||||
Apio
Value Added
|
$
|
154,744
|
$
|
136,141
|
14
|
%
|
||||
Apio
Tech
|
1,730
|
685
|
153
|
%
|
||||||
Technology
Subtotal
|
156,474
|
136,826
|
14
|
%
|
||||||
Apio
Trading
|
49,706
|
57,990
|
(14
|
%)
|
||||||
Total
Apio
|
206,180
|
194,816
|
6
|
%
|
||||||
Landec
Ag
|
2,831
|
34,096
|
(92
|
%)
|
||||||
Corporate
|
1,487
|
3,041
|
(51
|
%)
|
||||||
Total
Revenues
|
$
|
210,498
|
$
|
231,953
|
(9
|
%)
|
Fiscal
Year ended May 27, 2007
|
|
Fiscal
Year ended May 28, 2006
|
Change
|
|||||||
Apio
Value Added
|
$
|
23,426
|
$
|
23,022
|
2
|
%
|
||||
Apio
Tech
|
1,639
|
619
|
165
|
%
|
||||||
Technology
Subtotal
|
25,065
|
23,641
|
6
|
%
|
||||||
Apio
Trading
|
3,187
|
3,212
|
(1
|
%)
|
||||||
Total
Apio
|
28,252
|
26,853
|
5
|
%
|
||||||
Landec
Ag
|
2,647
|
10,439
|
(75
|
%)
|
||||||
Corporate
|
1,487
|
2,752
|
(46
|
%)
|
||||||
Total
Gross Profit
|
$
|
32,386
|
$
|
40,044
|
(19
|
%)
|
Fiscal
Year ended May 27, 2007
|
Fiscal
Year ended May 28, 2006
|
Change
|
||||||||
Research
and Development:
|
||||||||||
Apio
|
$
|
1,169
|
$
|
1,108
|
6
|
%
|
||||
Landec
Ag
|
266
|
470
|
(43
|
%)
|
||||||
Corporate
|
1,639
|
1,464
|
(12
|
%)
|
||||||
Total
R&D
|
$
|
3,074
|
$
|
3,042
|
1
|
%
|
||||
|
||||||||||
Selling,
General and Administrative:
|
||||||||||
Apio
|
$
|
12,667
|
$
|
13,633
|
(7
|
%)
|
||||
Landec
Ag
|
(17,302
|
)
|
9,616
|
(280
|
%)
|
|||||
Corporate
|
3,582
|
4,730
|
(24
|
%)
|
||||||
Total
S,G&A
|
$
|
(1,053
|
)
|
$
|
27,979
|
(104
|
%)
|
Fiscal
Year ended May 27, 2007
|
Fiscal
Year ended May 28, 2006
|
Change
|
||||||||
Interest
Income
|
$
|
1,945
|
$
|
633
|
207
|
%
|
||||
Interest
Expense
|
(251
|
)
|
(452
|
)
|
(44
|
%)
|
||||
Minority
Interest Expense
|
(412
|
)
|
(529
|
)
|
(22
|
%)
|
||||
Other
Expenses
|
(2
|
)
|
(24
|
)
|
(92
|
%)
|
||||
Total
Other Income (Exp.)
|
$
|
1,280
|
$
|
(372
|
)
|
444
|
%
|
|||
|
||||||||||
Income
taxes
|
$ | (2,456 | ) | $ | 0 | N/M |
Fiscal
Year ended May 28, 2006
|
|
Fiscal
Year ended May 29, 2005
|
|
Change
|
||||||
Apio
Value Added
|
$
|
136,141
|
$
|
120,445
|
13
|
%
|
||||
Apio
Tech
|
685
|
52
|
1217
|
%
|
||||||
Technology
Subtotal
|
136,826
|
120,497
|
14
|
%
|
||||||
Apio
Trading
|
57,990
|
58,660
|
(1
|
%)
|
||||||
Total
Apio
|
194,816
|
179,157
|
9
|
%
|
||||||
Landec
Ag
|
34,096
|
25,648
|
33
|
%
|
||||||
Corporate
|
3,041
|
425
|
616
|
%
|
||||||
Total
Revenues
|
$
|
231,953
|
$
|
205,230
|
13
|
%
|
Fiscal
Year ended May 28, 2006
|
|
Fiscal
Year ended May 29, 2005
|
|
Change
|
||||||
Apio
Value Added
|
$
|
23,022
|
$
|
19,062
|
21
|
%
|
||||
Apio
Tech
|
619
|
15
|
4027
|
%
|
||||||
Technology
Subtotal
|
23,641
|
19,077
|
24
|
%
|
||||||
Apio
Trading
|
3,212
|
3,118
|
3
|
%
|
||||||
Total
Apio
|
26,853
|
22,195
|
21
|
%
|
||||||
Landec
Ag
|
10,439
|
9,448
|
10
|
%
|
||||||
Corporate
|
2,752
|
329
|
736
|
%
|
||||||
Total
Gross Profit
|
$
|
40,044
|
$
|
31,972
|
25
|
%
|
Fiscal
Year ended May 28, 2006
|
|
Fiscal
Year ended May 29, 2005
|
|
Change
|
||||||
Research
and Development:
|
||||||||||
Apio
|
$
|
1,108
|
$
|
831
|
33
|
%
|
||||
Landec
Ag
|
470
|
647
|
(27
|
%)
|
||||||
Corporate
|
1,464
|
1,065
|
37
|
%
|
||||||
Total
R&D
|
$
|
3,042
|
$
|
2,543
|
20
|
%
|
||||
|
||||||||||
Selling,
General and Administrative:
|
||||||||||
Apio
|
$
|
13,633
|
$
|
12,354
|
10
|
%
|
||||
Landec
Ag
|
9,616
|
7,857
|
22
|
%
|
||||||
Corporate
|
4,730
|
3,201
|
48
|
%
|
||||||
Total
S,G&A
|
$
|
27,979
|
$
|
23,412
|
20
|
%
|
Fiscal
Year ended May 28, 2006
|
|
Fiscal
Year ended May 29, 2005
|
|
Change
|
||||||
Interest
Income
|
$
|
633
|
$
|
214
|
196
|
%
|
||||
Interest
Expense
|
(452
|
)
|
(414
|
)
|
9
|
%
|
||||
Minority
Interest Expense
|
(529
|
)
|
(411
|
)
|
29
|
%
|
||||
Other
Expenses
|
(24
|
)
|
(4
|
)
|
500
|
%
|
||||
Total
Other Expense
|
$
|
(372
|
)
|
$
|
(615
|
)
|
(40
|
%)
|
Due
in Fiscal Year Ended May
|
||||||||||||||||||||||
Obligation
|
Total
|
2008
|
2009
|
2010
|
2011
|
2012
|
Thereafter
|
|||||||||||||||
Capital
Leases
|
$
|
28
|
28
|
—
|
—
|
—
|
—
|
—
|
||||||||||||||
Operating
Leases
|
1,096
|
535
|
352
|
180
|
29
|
—
|
—
|
|||||||||||||||
Licensing
Obligation
|
500
|
100
|
100
|
100
|
100
|
100
|
—
|
|||||||||||||||
Purchase
Commitments
|
1,862
|
1,862
|
—
|
—
|
—
|
—
|
—
|
|||||||||||||||
Total
|
$
|
3,486
|
$
|
2,525
|
$
|
452
|
$
|
280
|
$
|
129
|
$
|
100
|
$
|
—
|
2008
|
2009
|
2010
|
2011
|
2012
|
There-after
|
Total
|
||||||||||||||||
Liabilities
(in 000’s)
|
||||||||||||||||||||||
Lines
of Credit
|
$
|
—
|
$
|
—
|
$
|
—
|
$
|
—
|
$
|
—
|
$
|
—
|
$
|
—
|
||||||||
Avg.
Int. Rate
|
||||||||||||||||||||||
Long
term debt, including current portion
|
||||||||||||||||||||||
Fixed
Rate
|
$
|
28
|
$
|
—
|
$
|
—
|
$
|
—
|
$
|
—
|
$
|
—
|
$
|
28
|
||||||||
Avg.
Int. Rate
|
5.90
|
%
|
5.90
|
%
|
(a)
1.
|
Consolidated
Financial Statements of Landec Corporation
|
Page
|
||||
Report
of Ernst & Young LLP, Independent Registered Public Accounting
Firm
|
44
|
|||
Consolidated
Balance Sheets at May 27, 2007 and May 28, 2006
|
45
|
|||
Consolidated
Statements of Income for the Years Ended May 27, 2007, May 28, 2006
and
May 29, 2005
|
46
|
|||
Consolidated
Statements of Changes in Shareholders’ Equity for the Years Ended May 27,
2007, May 28, 2006 and May 29, 2005
|
47
|
|||
Consolidated
Statements of Cash Flows for the Years Ended May 27, 2007, May 28,
2006
and May 29, 2005
|
48
|
|||
Notes
to Consolidated Financial Statements
|
49
|
|||
2.
|
All
schedules provided for in the applicable accounting regulations of
the
Securities and Exchange Commission have been omitted since they pertain
to
items which do not appear in the financial statements of Landec
Corporation and its subsidiaries or to items which are not significant
or
to items as to which the required disclosures have been made elsewhere
in
the financial statements and supplementary notes and such
schedules.
|
|||
3.
|
Index
of Exhibits
|
78
|
||
The
exhibits listed in the accompanying Index of Exhibits are filed or
incorporated by reference as part of this report.
|
May
27, 2007
|
May
28, 2006
|
||||||
ASSETS
|
|||||||
Current
assets:
|
|||||||
Cash
and cash equivalents
|
$
|
62,556
|
$
|
15,164
|
|||
Accounts
receivable, less allowance for doubtful accounts of $206 and $195
at May
27, 2007 and May 28, 2006, respectively
|
17,631
|
15,288
|
|||||
Accounts
receivable, related party
|
554
|
561
|
|||||
Inventories,
net
|
6,800
|
6,134
|
|||||
Notes
and advances receivable, net
|
282
|
376
|
|||||
Notes
receivable, related party
|
¾
|
14
|
|||||
Prepaid
expenses and other current assets
|
1,316
|
1,237
|
|||||
Assets
held for sale (Note 2)
|
¾
|
31,838
|
|||||
Total
current assets
|
89,139
|
70,612
|
|||||
Property
and equipment, net
|
20,270
|
16,882
|
|||||
Goodwill,
net
|
21,402
|
21,248
|
|||||
Trademarks,
net
|
8,228
|
8,228
|
|||||
Notes
receivable
|
96
|
631
|
|||||
Other
assets
|
2,233
|
1,424
|
|||||
Total
Assets
|
$
|
141,368
|
$
|
119,025
|
|||
LIABILITIES
AND SHAREHOLDERS' EQUITY
|
|||||||
Current
liabilities:
|
|||||||
Accounts
payable
|
$
|
13,705
|
$
|
12,443
|
|||
Related
party payables
|
175
|
533
|
|||||
Income
taxes payables
|
458
|
—
|
|||||
Accrued
compensation
|
3,126
|
2,764
|
|||||
Other
accrued liabilities
|
1,312
|
1,968
|
|||||
Deferred
revenue
|
3,491
|
811
|
|||||
Current
maturities of long term debt
|
28
|
2,018
|
|||||
Liabilities
assumed by buyer of FCD (Note 2)
|
─
|
11,668
|
|||||
Total
current liabilities
|
22,295
|
32,205
|
|||||
Deferred
revenue
|
7,000
|
—
|
|||||
Minority
interest
|
1,845
|
1,771
|
|||||
Total
liabilities
|
31,140
|
33,976
|
|||||
Shareholders'
equity:
|
|||||||
Common
stock, $0.001 par value; 50,000,000 shares authorized; 25,891,168
and
24,917,298 shares issued and outstanding at May 27, 2007 and May
28, 2006,
respectively
|
129,560
|
126,288
|
|||||
Accumulated
deficit
|
(19,332
|
)
|
(41,239
|
)
|
|||
Total
shareholders' equity
|
110,228
|
85,049
|
|||||
Total Liabilities and Shareholders’ Equity
|
$
|
141,368
|
$
|
119,025
|
Year
Ended
May
27,
2007
|
Year
Ended
May
28,
2006
|
Year
Ended
May
29,
2005
|
||||||||
Statement
of Operations Data:
|
||||||||||
Revenues:
|
||||||||||
Product
sales
|
$
|
201,892
|
$
|
225,404
|
$
|
201,020
|
||||
Services
revenue, related party
|
3,539
|
3,725
|
3,704
|
|||||||
License
fees
|
4,013
|
2,398
|
88
|
|||||||
Research,
development and royalty revenues
|
805
|
162
|
185
|
|||||||
Royalty
revenues, related party
|
249
|
264
|
233
|
|||||||
Total
revenues
|
210,498
|
231,953
|
205,230
|
|||||||
Cost
of revenue:
|
||||||||||
Cost
of product sales
|
172,251
|
184,345
|
164,027
|
|||||||
Cost of product sales, related party
|
3,001
|
4,559
|
6,332
|
|||||||
Cost
of services revenue
|
2,860
|
3,005
|
2,899
|
|||||||
Total
cost of revenue
|
178,112
|
191,909
|
173,258
|
|||||||
Gross
profit
|
32,386
|
40,044
|
31,972
|
|||||||
Operating
costs and expenses:
|
||||||||||
Research
and development
|
3,074
|
3,042
|
2,543
|
|||||||
Selling,
general and administrative
|
21,616
|
27,979
|
23,412
|
|||||||
Income
from sale of FCD (Note 2)
|
(22,669
|
)
|
—
|
—
|
||||||
Total
operating costs and expenses
|
2,021
|
31,021
|
25,955
|
|||||||
Operating
income
|
30,365
|
9,023
|
6,017
|
|||||||
Interest
income
|
1,945
|
633
|
214
|
|||||||
Interest
expense
|
(251
|
)
|
(452
|
)
|
(414
|
)
|
||||
Minority
interest expense
|
(412
|
)
|
(529
|
)
|
(411
|
)
|
||||
Other
expense, net
|
(2
|
)
|
(24
|
)
|
(4
|
)
|
||||
Net
income before taxes
|
$
|
31,645
|
$
|
8,651
|
$
|
5,402
|
||||
Income
tax expense
|
(2,456
|
)
|
—
|
—
|
||||||
Net
income
|
$
|
29,189
|
$
|
8,651
|
$
|
5,402
|
||||
Basic
net income per share
|
$
|
1.16
|
$
|
0.35
|
$
|
0.23
|
||||
Diluted
net income per share
|
$
|
1.07
|
$
|
0.32
|
$
|
0.21
|
||||
Shares
used in per share computation:
|
||||||||||
Basic
|
25,260
|
24,553
|
23,705
|
|||||||
Diluted
|
26,558
|
25,657
|
24,614
|
Common
Stock
|
Accumulated
|
Total
Shareholders'
|
|||||||||||
Shares
|
Amount
|
Deficit
|
Equity
|
||||||||||
Balance
at May 30, 2004
|
23,182,020
|
$
|
116,841
|
$
|
(55,292
|
)
|
$
|
61,549
|
|||||
Issuance
of common stock at $0.86 to $7.20 per
share
|
904,348
|
5,109
|
—
|
5,109
|
|||||||||
Net
income and comprehensive income
|
—
|
—
|
5,402
|
5,402
|
|||||||||
Balance
at May 29, 2005
|
24,086,368
|
121,950
|
(49,890
|
)
|
72,060
|
||||||||
Issuance
of common stock at $0.86 to $6.75 per
share
|
678,744
|
3,378
|
—
|
3,378
|
|||||||||
Issuance
of common stock for the net assets of
Heartland Hybrids
|
152,186
|
960
|
—
|
960
|
|||||||||
Net
income and comprehensive income
|
—
|
—
|
8,651
|
8,651
|
|||||||||
Balance
at May 28, 2006
|
24,917,298
|
126,288
|
(41,239
|
)
|
85,049
|
||||||||
Issuance
of common stock at $1.66 to $8.86 per
share
|
973,870
|
2,657
|
—
|
2,657
|
|||||||||
Stock-based compensation
|
—
|
615
|
—
|
615
|
|||||||||
Repurchase
of subsidiary common stock and options
|
—
|
—
|
(7,282
|
)
|
(7,282
|
)
|
|||||||
Net
income and comprehensive income
|
—
|
—
|
29,189
|
29,189
|
|||||||||
Balance
at May 27, 2007
|
25,891,168
|
$
|
129,560
|
$
|
(19,332
|
)
|
$
|
110,228
|
Year
Ended
|
|
Year
Ended
|
|
Year
Ended
|
|
|||||
|
|
May
27,
|
|
May
28,
|
|
May
29,
|
|
|||
|
|
2007
|
|
2006
|
|
2005
|
||||
Cash
flows from operating activities:
|
||||||||||
Net
income
|
$
|
29,189
|
$
|
8,651
|
$
|
5,402
|
||||
Adjustments
to reconcile net income to net cash (used in) provided by operating
activities:
|
||||||||||
Depreciation
and amortization
|
3,260
|
3,203
|
3,467
|
|||||||
Gain
from sale of FCD (Note 2)
|
(24,587
|
)
|
—
|
—
|
||||||
Stock-based
compensation
|
615
|
—
|
—
|
|||||||
Net
loss (gain) on disposal of property and equipment
|
43
|
(120
|
)
|
149
|
||||||
Minority
interest
|
412
|
529
|
414
|
|||||||
Investment in unconsolidated business
|
(481
|
)
|
(1,311
|
)
|
—
|
|||||
Changes in assets and liabilities, net of effects from
acquisitions:
|
||||||||||
Accounts
receivable, net
|
(266
|
)
|
(1,968
|
)
|
(532
|
)
|
||||
Inventories,
net
|
(8,733
|
)
|
(3,123
|
)
|
1,310
|
|||||
Issuance
of notes and advances receivable
|
(2,186
|
)
|
(1,761
|
)
|
(448
|
)
|
||||
Collection
of notes and advances receivable
|
2,228
|
1,882
|
1,250
|
|||||||
Prepaid
expenses and other current assets
|
(268
|
)
|
431
|
(515
|
)
|
|||||
Accounts
payable
|
(3,425
|
)
|
3,685
|
2,553
|
||||||
Related
party payables
|
(358
|
)
|
(260
|
)
|
363
|
|||||
Income
taxes payable
|
458
|
—
|
—
|
|||||||
Accrued
compensation
|
95
|
1,396
|
337
|
|||||||
Other
accrued liabilities
|
(658
|
)
|
(146
|
)
|
(365
|
)
|
||||
Deferred
revenue
|
2,600
|
(223
|
)
|
(337
|
)
|
|||||
Net
cash (used in) provided by operating activities
|
(2,062
|
)
|
10,865
|
13,048
|
||||||
Cash
flows from investing activities:
|
||||||||||
Purchases
of property and equipment
|
(6,782
|
)
|
(4,746
|
)
|
(3,658
|
)
|
||||
Net
proceeds from sale of FCD (Note 2)
|
49,441
|
—
|
—
|
|||||||
Acquisition
of businesses, net of cash acquired
|
(1,218
|
)
|
(3,860
|
)
|
—
|
|||||
Issuance
of notes and advances receivable
|
(37
|
)
|
(425
|
)
|
—
|
|||||
Collection
of notes and advances receivable
|
638
|
224
|
408
|
|||||||
Proceeds
from the sale of property and equipment
|
—
|
1,350
|
22
|
|||||||
Purchase
of marketable securities
|
—
|
(991
|
)
|
(1,968
|
)
|
|||||
Proceeds
from maturities
of
marketable securities
|
—
|
2,959
|
—
|
|||||||
Net
cash provided by (used in) investing activities
|
42,042
|
(5,489
|
)
|
(5,196
|
)
|
|||||
Cash
flows from financing activities:
|
||||||||||
Proceeds
from sale of common stock
|
2,657
|
3,378
|
5,109
|
|||||||
Proceeds
from the exercise of subsidiary options
|
66
|
105
|
50
|
|||||||
Repurchase
of subsidiary common stock and options
|
(7,384
|
)
|
—
|
—
|
||||||
Net
change in other assets
|
(328
|
)
|
254
|
(140
|
)
|
|||||
Borrowings
on lines of credit
|
9,338
|
14,904
|
59,441
|
|||||||
Payments
on lines of credit
|
—
|
(14,904
|
)
|
(64,758
|
)
|
|||||
Payments
on long term debt
|
(1,990
|
)
|
(1,136
|
)
|
(1,791
|
)
|
||||
Proceeds
from issuance of long term debt
|
—
|
—
|
1,200
|
|||||||
Payments
to minority interest .
|
(302
|
)
|
(329
|
)
|
(550
|
)
|
||||
Net
cash provided by (used in) financing activities
|
2,057
|
2,272
|
(1,439
|
)
|
||||||
Net
increase in cash and cash equivalents
|
42,037
|
7,648
|
6,413
|
|||||||
Cash
and cash equivalents at beginning of year (including FCD)
|
20,519
|
12,871
|
6,458
|
|||||||
Cash
and cash equivalents at end of year (including FCD)
|
62,556
|
20,519
|
12,871
|
|||||||
Less:
Cash held in assets held for sale
|
—
|
(5,355
|
)
|
(5,445
|
)
|
|||||
Cash
and cash equivalents at end of year
|
$
|
62,556
|
$
|
15,164
|
$
|
7,426
|
||||
Supplemental
disclosure of cash flows information:
|
||||||||||
Cash
paid during the period for interest
|
$
|
179
|
$
|
312
|
$
|
511
|
||||
Cash
paid during the period for income taxes
|
$
|
1,998
|
$
|
—
|
$
|
50
|
||||
Supplemental
schedule of noncash operating and investing activities:
|
||||||||||
Preferred
stock
received from investment in unconsolidated business
|
$
|
481
|
$
|
1,311
|
$
|
—
|
||||
Sale
of land and
equipment for note receivable
|
$
|
—
|
$
|
380
|
$
|
—
|
Balance
at beginning of period
|
Additions
charged to costs and expenses
|
Deductions
|
Balance
at end of period
|
||||||||||
Year
ended May 29, 2005
|
|||||||||||||
Allowance
for doubtful accounts receivable and notes receivable
|
$
|
458
|
$
|
69
|
$
|
(182
|
)
|
$
|
345
|
||||
Year
ended May 28, 2006
|
|||||||||||||
Allowance
for doubtful accounts receivable and notes receivable
|
$
|
345
|
$
|
10
|
$
|
(135
|
)
|
$
|
220
|
||||
Year
ended May 27, 2007
|
|||||||||||||
Allowance
for doubtful accounts receivable and notes receivable
|
$
|
220
|
$
|
64
|
$
|
(78
|
)
|
$
|
206
|
May
27,
2007
|
May
28,
2006
|
||||||
Finished
goods
|
$
|
2,273
|
$
|
2,193
|
|||
Raw
materials
|
4,527
|
3,764
|
|||||
Work
in process
|
─
|
177
|
|||||
Inventories,
net
|
$
|
6,800
|
$
|
6,134
|
Fiscal
Year Ended
May
27, 2007
|
Fiscal
Year Ended
May
28, 2006
|
Fiscal
Year Ended
May
29, 2005
|
||||||||
Numerator:
|
||||||||||
Net
income
|
$
|
29,189
|
$
|
8,651
|
$
|
5,402
|
||||
Less:
Minority interest in income of subsidiary
|
(778
|
)
|
(556
|
)
|
(294
|
)
|
||||
Net
income for diluted net income per share
|
$
|
28,411
|
$
|
8,095
|
$
|
5,108
|
||||
Denominator:
|
||||||||||
Weighted
average
shares for basic net income per share
|
25,260
|
24,553
|
23,705
|
|||||||
Effect
of dilutive securities:
|
||||||||||
Stock
options
|
1,298
|
1,104
|
909
|
|||||||
Weighted
average shares for diluted net income per share
|
26,558
|
25,657
|
24,614
|
|||||||
Diluted
net income per share
|
$
|
1.07
|
$
|
0.32
|
$
|
0.21
|
Fiscal
Year Ended
May
27, 2007
|
||||
Research
and development
|
$
|
82,000
|
||
Sales,
general and administrative
|
$
|
533,000
|
||
Total
stock-based
compensation expense
|
$
|
615,000
|
Landec
Employee
Stock Options
|
||||||||||
Fiscal
Year Ended
May
27, 2007
|
Fiscal
Year Ended
May
28, 2006
|
Fiscal
Year Ended
May
29, 2005
|
||||||||
Expected
life (in years)
|
4.27
|
4.58
|
4.38
|
|||||||
Risk-free
interest rate
|
5.08
|
%
|
4.37
|
%
|
3.70
|
%
|
||||
Volatility
|
0.51
|
0.52
|
0.57
|
|||||||
Dividend
yield
|
0
|
%
|
0
|
%
|
0
|
%
|
Year
Ended
|
Year
Ended
|
||||||
May
28,
|
May
29,
|
||||||
2006
|
2005
|
||||||
Net
income - as reported
|
$
|
8,651
|
$
|
5,402
|
|||
Deduct:
|
|||||||
Stock-based
employee expense determined under SFAS 123
|
(1,160
|
)
|
(1,511
|
)
|
|||
Pro
forma net income
|
$
|
7,491
|
$
|
3,891
|
|||
Basic
net income per share
- as reported
|
$
|
0.35
|
$
|
0.23
|
|||
Diluted
net income per share
- as reported
|
$
|
0.32
|
$
|
0.21
|
|||
Basic
pro forma net income per
share
|
$
|
0.31
|
$
|
0.16
|
|||
Diluted
pro forma net income per
share
|
$
|
0.27
|
$
|
0.15
|
Cash
received at close
|
$
|
50,000
|
||
Fair
market value of FCD
|
40,000
|
|||
Proceeds
allocated to technology license agreement (1)
|
$
|
10,000
|
||
Fair
market value of FCD
|
$
|
40,000
|
||
Less:
Cost basis of assets sold net of liabilities assumed (2)
|
(14,856
|
)
|
||
Less:
Direct expenses of sale
|
(557
|
)
|
||
Net
gain from sale of FCD
|
24,587
|
|||
Less:
Bonuses paid to employees as a result of the sale
|
(1,918
|
)
|
||
Income
from sale of FCD
|
$
|
22,669
|
(1)
|
Represents
a deferred gain at the closing date which will be recognized as revenue
over 5 years as described below.
|
(2)
|
Included
in assets held for sale in the accompanying Consolidated Balance
Sheets at
May 28, 2006 is $5.4 million in cash which was retained by the Company
upon the close of the sale of FCD.
|
Net
assets and liabilities
|
$
|
(757
|
)
|
|
Customer
Base
|
800
|
|||
Trademark
|
1,700
|
|||
4,187
|
||||
$
|
5,930
|
May
27,
2007
|
May
28,
2006
|
||||||
Notes
and advances receivable at May 27, 2007 and May 28, 2006 consisted
of the
following (in thousands):
|
|||||||
Note
receivable due from buyer of fruit processing equipment in annual
installments of $98 plus interest at prime rate plus 1.0%, with final
payment due October 20, 2009, secured by purchased assets
(2)
|
|
205
|
|
413
|
|||
Note
receivable due from grower in annual installments in an amount equal
to
50% of net profits realized by borrower from the sale of grapes produced
from this property, plus interest at prime (8.00% at May 28, 2006),
with
final payment due December 31, 2009, secured by a deed of trust
(2)
|
—
|
380
|
|||||
Advances
to a grower under an agricultural sublease in semi-annual installments
of
$215 through October 31, 2006, to be repaid at $12 per week by withholding
proceeds from crop produced on this property (1)
|
—
|
156
|
|||||
Note
receivable due from grower in annual installments of $33 plus interest
at
prime rate plus 1.0%, with final payment due December 31, 2007, unsecured
(1)
|
33
|
67
|
|||||
Note
receivable due from Beachside Produce (related party) in monthly
installments of $7 including interest at 5%, with final payment due
June
30, 2006, secured by lien and security interest (2)
|
—
|
14
|
|||||
Advances
to a grower under agricultural subleases in semi-annual installments
of $144 and a single installment of $54, to be repaid
at $12 per week by withholding proceeds from crop produced
on this property. Leases expire October 31, 2009 and August
1, 2007 (1)
|
140
|
—
|
|||||
Notes
receivable due from growers, with principal and interest of prime
rate
plus 1.75%, secured by their respective partnership interest in Apio
Cooling LP. Payments to be deducted from distributions until notes
are
paid in full, with balances due December 31, 2008 (1)
|
—
|
4
|
|||||
Note
receivable due from buyer of fruit trademarks in annual installments
of $3
plus interest at prime rate plus 1.0%, with final payment due October
20,
2009 (2)
|
—
|
12
|
|||||
Gross
notes and advances receivable
|
378
|
1,046
|
|||||
Less
allowance for doubtful notes
|
—
|
(25
|
)
|
||||
Net
notes and advances receivable
|
378
|
1,021
|
|||||
Less
current portion of notes and advances receivable
|
(282
|
)
|
(390
|
)
|
|||
Non-current
portion of notes and advances receivable
|
$
|
96
|
$
|
631
|
Years
of
|
||||||||||
Useful
Life
|
May
27, 2007
|
May
28, 2006
|
||||||||
Land
and building
|
15-30
|
$
|
16,783
|
$
|
10,323
|
|||||
Leasehold
improvements
|
3-20
|
1,031
|
1,102
|
|||||||
Computer,
capitalized software, machinery, equipment and auto
|
3-7
|
20,383
|
19,737
|
|||||||
Furniture
and fixtures
|
5-7
|
456
|
448
|
|||||||
Construction
in process
|
204
|
2,042
|
||||||||
Gross
property and
equipment
|
38,857
|
33,652
|
||||||||
Less
accumulated depreciation and amortization
|
(18,587
|
)
|
(16,770
|
)
|
||||||
Net
property and
equipment
|
$
|
20,270
|
$
|
16,882
|
Food
Products
Technology
|
Agricultural
Seed
Technology
|
Total
|
||||||||
Balance
as of May 30, 2004
|
$
|
21,233
|
$
|
4,754
|
$
|
25,987
|
||||
Goodwill
changes during the period
|
—
|
—
|
—
|
|||||||
Balance
as of May 29, 2005
|
21,233
|
4,754
|
25,987
|
|||||||
Goodwill
acquired during the period
|
—
|
3,137
|
3,137
|
|||||||
Reclassed
to assets held for sale
|
(7,876
|
)
|
(7,876
|
)
|
||||||
Balance
as of May 28, 2006
|
21,233
|
15
|
21,248
|
|||||||
Goodwill
acquired during the period
|
169
|
1,050
|
1,219
|
|||||||
Goodwill
sold and amortized during the period
|
—
|
(1,065
|
)
|
(1,065
|
)
|
|||||
Balance
as of May 27, 2007
|
$
|
21,402
|
$
|
—
|
$
|
21,402
|
Trademarks
|
|
Other
|
|
Total
|
||||||
Balance
as of May 30, 2004
|
$
|
11,570
|
85
|
$
|
11,655
|
|||||
Amortization
expense
|
—
|
(27
|
)
|
(27
|
)
|
|||||
Balance
as of May 29, 2005
|
11,570
|
58
|
11,628
|
|||||||
Other
intangibles acquired
|
1,700
|
810
|
2,510
|
|||||||
Reclassed
to assets held for sale
|
(5,042
|
)
|
(860
|
)
|
(5,902
|
)
|
||||
Amortization
expense
|
—
|
(8
|
)
|
(8
|
)
|
|||||
Balance
as of May 28, 2006
|
8,228
|
—
|
8,228
|
|||||||
Amortization
expense
|
—
|
—
|
—
|
|||||||
Balance
as of May 27, 2007
|
$
|
8,228
|
$
|
—
|
$
|
8,228
|
Restricted Stock Outstanding
|
|
|
Stock Options Outstanding
|
|
||||||||||||
|
|
|
RSUs
and
Options
Available
for Grant
|
|
|
Number of
Restricted
Shares
|
|
|
Weighted
Average
Grant Date
Fair Value
|
|
|
Number of
Stock Options
|
|
|
Weighted
Average
Exercise Price (Fair
Value)
|
|
Balance
at May 30, 2004
|
1,538,545
|
—
|
—
|
3,922,761
|
$
|
4.81
|
||||||||||
Granted
|
(625,000
|
)
|
—
|
—
|
625,000
|
$
|
6.54
|
|||||||||
Exercised
|
—
|
—
|
—
|
(397,772
|
)
|
$
|
3.80
|
|||||||||
Forfeited
|
27,493
|
—
|
—
|
(27,493
|
)
|
$
|
4.98
|
|||||||||
Balance
at May 29, 2005
|
941,038
|
—
|
—
|
4,122,496
|
$
|
5.08
|
||||||||||
Additional
shares reserved
|
861,038
|
—
|
—
|
—
|
—
|
|||||||||||
Granted
|
(83,333
|
)
|
833
|
$
|
7.53
|
82,500
|
$
|
6.68
|
||||||||
Exercised
|
—
|
—
|
—
|
(1,027,718
|
)
|
$
|
5.83
|
|||||||||
Forfeited
|
59,762
|
—
|
$
|
7.53
|
(59,762
|
)
|
$
|
6.36
|
||||||||
Terminated
plans
|
(920,800
|
)
|
—
|
—
|
—
|
—
|
||||||||||
Balance
at May 28, 2006
|
857,705
|
833
|
$
|
7.53
|
3,117,516
|
$
|
4.85
|
|||||||||
Granted
|
(153,335
|
)
|
38,335
|
$
|
8.86
|
115,000
|
$
|
8.86
|
||||||||
Exercised
|
—
|
—
|
—
|
(1,163,234
|
)
|
$
|
4.72
|
|||||||||
Forfeited
|
8,778
|
(833
|
)
|
$
|
7.53
|
(7,945
|
)
|
$
|
4.93
|
|||||||
Plan
shares expired
|
(6,417
|
)
|
—
|
—
|
—
|
—
|
||||||||||
Balance
at May 27, 2007
|
706,731
|
38,335
|
$
|
8.86
|
2,061,337
|
$
|
5.14
|
Options Outstanding
|
Options Exercisable
|
||||||||||||||||||||||
Range of
Exercise
Prices
|
Number of Shares
Outstanding
|
Weighted
Average
Remaining
Contractual
Life
|
Weighted
Average
Exercise
Price
|
Aggregate
Intrinsic
Value
|
Number of
Shares
Exercisable
|
Weighted
Average
Exercise
Price
|
Aggregate
Intrinsic Value
|
||||||||||||||||
(in years)
|
(in years)
|
||||||||||||||||||||||
$
|
1.660
- $3.250
|
289,393
|
5.08
|
$
|
2.91
|
$
|
3,082,035
|
288,767
|
$
|
2.91
|
$
|
3,075,369
|
|||||||||||
$
|
3.375
- $3.375
|
278,000
|
3.53
|
$
|
3.38
|
$
|
2,830,040
|
278,000
|
$
|
3.38
|
$
|
2,830,040
|
|||||||||||
$
|
3.400
- $3.700
|
206,146
|
3.20
|
$
|
3.47
|
$
|
2,080,013
|
205,832
|
$
|
3.47
|
$
|
2,076,845
|
|||||||||||
$
|
3.750
- $4.938
|
217,323
|
3.54
|
$
|
4.48
|
$
|
1,973,293
|
217,323
|
$
|
4.48
|
$
|
1,973,293
|
|||||||||||
$
|
5.000
- $6.125
|
165,503
|
1.95
|
$
|
5.51
|
$
|
1,332,299
|
159,565
|
$
|
5.50
|
$
|
1,286,094
|
|||||||||||
$
|
6.130
- $6.130
|
262,000
|
4.98
|
$
|
6.13
|
$
|
1,946,660
|
187,000
|
$
|
6.13
|
$
|
1,389,410
|
|||||||||||
$
|
6.450
- $6.750
|
340,000
|
4.49
|
$
|
6.68
|
$
|
2,339,200
|
340,000
|
$
|
6.68
|
$
|
2,339,200
|
|||||||||||
$
|
6.790
- $8.860
|
302,972
|
6.92
|
$
|
7.75
|
$
|
1,760,267
|
243,937
|
$
|
7.49
|
$
|
1,480,698
|
|||||||||||
$
|
1.660
- $8.860
|
2,061,337
|
4.43
|
$
|
5.14
|
$
|
17,343,807
|
1,920,424
|
$
|
4.99
|
$
|
16,450,949
|
Stock Options
|
Restricted Stock
|
||||||||||||
Shares
|
Weighted
Average Fair
Value
|
Shares
|
Weighted
Average Fair
Value
|
||||||||||
Unvested
at May 28, 2006
|
182,586
|
$
|
2.43
|
833
|
$
|
7.53
|
|||||||
Granted
|
115,000
|
$
|
4.05
|
38,335
|
$
|
8.32
|
|||||||
Vested/Awarded
|
(148,728
|
)
|
$
|
2.44
|
—
|
—
|
|||||||
Forfeited
|
(7,945
|
)
|
$
|
3.27
|
(833
|
)
|
$
|
7.53
|
|||||
Unvested
at May 27, 2007
|
140,913
|
$
|
3.70
|
38,335
|
$
|
8.32
|
Outstanding
Options
|
||||||||||
Options
Available
|
Number
of Shares
|
Weighted
Average Exercise Price
|
||||||||
Balance
at May 30, 2004
|
414,068
|
1,259,850
|
$
|
0.41
|
||||||
Options
granted
|
—
|
—
|
—
|
|||||||
Options
exercised
|
—
|
(503,895
|
)
|
$
|
0.10
|
|||||
Options
forfeited
|
165,855
|
(165,855
|
)
|
$
|
1.00
|
|||||
Balance
at May 29, 2005
|
579,923
|
590,100
|
$
|
0.71
|
||||||
Options
granted
|
—
|
—
|
—
|
|||||||
Options
exercised
|
—
|
—
|
—
|
|||||||
Options
forfeited
|
52,313
|
(52,313
|
)
|
$
|
0.94
|
|||||
Expired
in Plan
|
(632,236
|
)
|
—
|
—
|
||||||
Balance
at May 28, 2006
|
—
|
537,787
|
$
|
0.69
|
||||||
Options
granted
|
—
|
—
|
—
|
|||||||
Options
exercised
|
—
|
(59,462
|
)
|
$
|
0.24
|
|||||
Options
forfeited
|
—
|
|
(625
|
)
|
$
|
1.00
|
||||
Repurchased
by Landec
|
— |
(477,700
|
)
|
$
|
5.62
|
|||||
Balance
at May 27, 2007
|
—
|
—
|
—
|
Outstanding
Options
|
||||||||||
Options
Available
|
Number
of Shares
|
Weighted
Average
Exercise
Price
|
||||||||
Balance
at May 30, 2004
|
1,563,472
|
2,386,779
|
$
|
2.10
|
||||||
Options
granted
|
—
|
—
|
—
|
|||||||
Options
exercised
|
—
|
—
|
—
|
|||||||
Options
forfeited
|
59,457
|
(59,457
|
)
|
$
|
2.10
|
|||||
Balance
at May 29, 2005
|
1,622,929
|
2,327,322
|
$
|
2.10
|
||||||
Options
granted
|
—
|
—
|
—
|
|||||||
Options
exercised
|
—
|
(50,158
|
)
|
$
|
2.10
|
|||||
Options
forfeited
|
8,469
|
(8,469
|
)
|
$
|
2.10
|
|||||
Balance
at May 28, 2006
|
1,631,398
|
2,268,695
|
$
|
2.10
|
||||||
Options
granted
|
—
|
—
|
—
|
|||||||
Options
exercised
|
—
|
(24,500
|
)
|
$
|
2.10
|
|||||
Options
forfeited
|
28,695
|
(28,695
|
)
|
$
|
2.10
|
|||||
Balance
at May 27, 2007
|
1,660,093
|
2,215,500
|
$
|
2.10
|
May
27,
|
May
28,
|
||||||
2007
|
2006
|
||||||
Note
payable of Apio to a commercial finance company; due in monthly
installments of $13 including variable interest currently at 7.23%
with
final payment due December 2019
|
$
|
—
|
$
|
1,338
|
|||
Note
payable of Apio to a bank; due in monthly installments of $8 including
variable interest currently at 7.76% with final payment due December
2015
|
—
|
630
|
|||||
Capitalized
lease obligations in monthly installments of $2 with an interest
rate of
5.90% with final payment due August 2008
|
28
|
50
|
|||||
28
|
2,018
|
||||||
Less
current portion
|
28
|
(2,018
|
)
|
||||
|
$ |
—
|
$
|
—
|
Year
Ended
May
27, 2007
|
Year
Ended
May
28, 2006
|
Year
Ended
May
29, 2005
|
||||||||
Provision
at U.S. statutory rate (1)
|
$
|
11,076
|
$
|
2,949
|
$
|
1,839
|
||||
State
income taxes, net of federal benefit
|
1,818
|
506
|
315
|
|||||||
Change
in valuation allowance
|
(10,026
|
)
|
(3,788
|
)
|
(2,017
|
)
|
||||
Tax
credit carryforwards
|
(78
|
)
|
375
|
(200
|
)
|
|||||
Other
|
(334
|
)
|
(31
|
)
|
69
|
|||||
Total
|
$
|
2,456
|
$
|
11
|
$
|
6
|
May
27,
|
May
28,
|
||||||
2007
|
2006
|
||||||
Deferred
tax assets:
|
|||||||
Net
operating loss carryforwards
|
$
|
2,385
|
$
|
14,900
|
|||
Research
and AMT credit carryforwards
|
2,495
|
2,100
|
|||||
Capitalized
research and development
|
40
|
100
|
|||||
Other
- net
|
(2,546
|
)
|
(4,700
|
)
|
|||
Net
deferred tax assets
|
2,374
|
12,400
|
|||||
Valuation
allowance
|
(2,374
|
)
|
(12,400
|
)
|
|||
Net
deferred tax assets
|
$
|
—
|
$
|
—
|
Amount
|
||||
FY2008
|
$
|
535
|
||
FY2009
|
352
|
|||
FY2010
|
180
|
|||
FY2011
|
29
|
|||
FY2012
|
—
|
|||
$
|
1,096
|
Fiscal
Year Ended May 27, 2007
|
Food
Products Technology
|
|
Agricultural
Seed Technology
|
|
Corporate
and Other
|
|
TOTAL
|
||||||
Net
sales
|
$
|
206,180
|
$
|
2,831
|
$
|
1,487
|
$
|
210,498
|
|||||
International
sales
|
$
|
46,406
|
$
|
¾
|
$
|
¾
|
$
|
46,406
|
|||||
Gross
profit
|
$
|
28,252
|
$
|
2,647
|
$
|
1,487
|
$
|
32,386
|
|||||
Net
income (loss)
|
$
|
10,916
|
$
|
17,174
|
$
|
1,099
|
$
|
29,189
|
|||||
Identifiable
assets
|
$
|
93,985
|
$
|
2,577
|
$
|
44,806
|
$
|
141,368
|
|||||
Depreciation
and amortization
|
$
|
2,684
|
$
|
474
|
$
|
102
|
$
|
3,260
|
|||||
Capital
expenditures
|
$
|
6,277
|
$
|
477
|
$
|
28
|
$
|
6,782
|
|||||
Interest
income
|
$
|
751
|
$
|
45
|
$
|
1,149
|
$
|
1,945
|
|||||
Interest
expense
|
$
|
80
|
$
|
171
|
$
|
¾
|
$
|
251
|
|||||
Income
tax expense
|
$
|
918
|
$
|
1,446
|
$
|
92
|
$
|
2,456
|
|||||
Fiscal
Year Ended May 28, 2006
|
|||||||||||||
Net
sales
|
$
|
194,816
|
$
|
34,096
|
$
|
3,041
|
$
|
231,953
|
|||||
International
sales
|
$
|
50,337
|
$
|
¾
|
$
|
¾
|
$
|
50,337
|
|||||
Gross
profit
|
$
|
26,853
|
$
|
10,439
|
$
|
2,752
|
$
|
40,044
|
|||||
Net
income (loss)
|
$
|
9,128
|
$
|
(1,387
|
)
|
$
|
910
|
$
|
8,651
|
||||
Identifiable
assets
|
$
|
83,531
|
$
|
32,613
|
$
|
2,881
|
$
|
119,025
|
|||||
Depreciation
and amortization
|
$
|
2,572
|
$
|
533
|
$
|
98
|
$
|
3,203
|
|||||
Capital
expenditures
|
$
|
4,263
|
$
|
439
|
$
|
44
|
$
|
4,746
|
|||||
Interest
income
|
$
|
502
|
$
|
75
|
$
|
56
|
$
|
633
|
|||||
Interest
expense
|
$
|
300
|
$
|
152
|
$
|
¾
|
$
|
452
|
|||||
Income
tax expense
|
$
|
¾
|
$
|
¾
|
$
|
¾
|
$
|
¾
|
|||||
Seven
Months Ended May 29, 2005
|
|||||||||||||
Net
sales
|
$
|
179,157
|
$
|
25,648
|
$
|
425
|
$
|
205,230
|
|||||
International
sales
|
$
|
48,773
|
$
|
¾
|
$
|
¾
|
$
|
48,773
|
|||||
Gross
profit
|
$
|
22,195
|
$
|
9,448
|
$
|
329
|
$
|
31,972
|
|||||
Net
income (loss)
|
$
|
5,621
|
$
|
(316
|
)
|
$
|
97
|
$
|
5,402
|
||||
Identifiable
assets
|
$
|
72,511
|
$
|
22,711
|
$
|
4,853
|
$
|
100,075
|
|||||
Depreciation
and amortization
|
$
|
2,890
|
$
|
472
|
$
|
105
|
$
|
3,467
|
|||||
Capital
expenditures
|
$
|
3,134
|
$
|
426
|
$
|
98
|
$
|
3,658
|
|||||
Interest
income
|
$
|
130
|
$
|
57
|
$
|
27
|
$
|
214
|
|||||
Interest
expense
|
$
|
305
|
$
|
109
|
$
|
¾
|
$
|
414
|
|||||
Income
tax expense
|
$
|
¾
|
$
|
¾
|
$
|
¾
|
$
|
¾
|
The
following is a summary of the unaudited quarterly results of operations
for fiscal years 2007, 2006 and 2005 (in thousands, except for per
share
amounts):
|
FY
2007
|
1st
Quarter
|
|
2nd
Quarter
|
|
3rd
Quarter
|
|
4th
Quarter
|
|
FY
2007
|
|||||||
Revenues
|
$
|
51,147
|
$
|
55,194
|
$
|
52,956
|
$
|
51,201
|
$
|
210,498
|
||||||
Gross
profit
|
$
|
5,556
|
$
|
8,276
|
$
|
9,091
|
$
|
9,463
|
$
|
32,386
|
||||||
Net
income
|
$
|
14
|
$
|
108
|
$
|
24,644
|
$
|
4,423
|
$
|
29,189
|
||||||
Net
income per basic share
|
$
|
0.00
|
$
|
0.00
|
$
|
0.97
|
$
|
0.17
|
$
|
1.16
|
||||||
Net
income per diluted share
|
$
|
0.00
|
$
|
0.00
|
$
|
0.92
|
$
|
0.16
|
$
|
1.07
|
FY
2006
|
1st
Quarter
|
|
|
2nd
Quarter
|
|
|
3rd
Quarter
|
|
|
4th
Quarter
|
|
|
FY
2006
|
|||
Revenues
|
$
|
49,705
|
$
|
53,712
|
$
|
57,249
|
$
|
71,287
|
$
|
231,953
|
||||||
Gross
profit
|
$
|
6,590
|
$
|
7,089
|
$
|
11,415
|
$
|
14,950
|
$
|
40,044
|
||||||
Net
(loss) income
|
$
|
(521
|
)
|
$
|
(1,037
|
)
|
$
|
3,514
|
$
|
6,695
|
$
|
8,651
|
||||
Net
(loss)/income per basic share
|
$
|
(0.02
|
)
|
$
|
(0.04
|
)
|
$
|
0.14
|
$
|
0.27
|
$
|
0.35
|
||||
Net
(loss)/income per diluted share
|
$
|
(0.02
|
)
|
$
|
(0.04
|
)
|
$
|
0.13
|
$
|
0.24
|
$
|
0.32
|
FY
2005
|
1st
Quarter
|
|
|
2nd
Quarter
|
|
|
3rd
Quarter
|
|
|
4th
Quarter
|
|
|
FY
2005
|
|||
Revenues
|
$
|
46,854
|
$
|
50,672
|
$
|
51,532
|
$
|
56,172
|
$
|
205,230
|
||||||
Gross
profit
|
$
|
5,741
|
$
|
5,997
|
$
|
9,242
|
$
|
10,992
|
$
|
31,972
|
||||||
Net
(loss) income
|
$
|
(692
|
)
|
$
|
(808
|
)
|
$
|
2,293
|
$
|
4,609
|
$
|
5,402
|
||||
Net
(loss)/income per basic share
|
$
|
(0.03
|
)
|
$
|
(0.03
|
)
|
$
|
0.10
|
$
|
0.19
|
$
|
0.23
|
||||
Net
(loss)/income per diluted share
|
$
|
(0.03
|
)
|
$
|
(0.03
|
)
|
$
|
0.09
|
$
|
0.17
|
$
|
0.21
|
Exhibit
Number:
|
Exhibit
Title
|
|
2.3
|
Form
of Agreement and Plan of Merger and Purchase Agreement by and among
the
Registrant, Apio, Inc. and related companies and each of the respective
shareholders dated as of November 29, 1999, incorporated herein by
reference to Exhibit 2.1 to the Registrant’s Current Report on Form
8-K dated December 2, 1999.
|
|
2.4
|
Stock
Purchase Agreement between The Lubrizol Corporation and the Registrant
dated as of October 24, 2002, incorporated herein by reference to
Exhibit
2.1 to the Registrant’s Current Report on Form 8-K dated October 24,
2002.
|
|
2.5
|
Purchase
Agreement between the Registrant and Apio Fresh LLC and the Growers
listed
therein, dated as of July 3, 2003, incorporated herein by reference
to
Exhibit 2.1 to the Registrant’s Current Report on Form 8-K dated July 3,
2003.
|
|
3.1
|
Amended
and Restated Bylaws of Registrant, incorporated herein by reference
to
Exhibit 3.1 to the Registrant’s Current Report on Form 8-K dated May 19,
2005.
|
|
3.2
|
Ninth
Amended and Restated Articles of Incorporation of Registrant, incorporated
herein by reference to Exhibit 3.2 to the Registrant’s Registration
Statement on Form S-1 (File No. 33-80723) declared effective on February
12, 1996.
|
|
3.3
|
Certificate
of Determination of Series A Preferred Stock, incorporated herein
by
reference to Exhibit 3.3 to the Registrant’s Annual Report on Form 10-K
for the fiscal year ended October 31, 1999.
|
|
3.4
|
Certificate
of Determination of Series B Preferred Stock, incorporated
herein by reference to Exhibit 3.1 to the Registrant’s Current Report on
Form 8-K dated October 25, 2001.
|
|
10.1
|
Form
of Indemnification Agreement, incorporated herein by reference to
Exhibit
10.1 to the Registrant’s Annual Report on Form 10-K for the fiscal year
ended May 29, 2005.
|
Exhibit
Number:
|
Exhibit
Title
|
|
10.5*
|
Form
of Option Agreement for 1995 Directors’ Stock Option Plan, incorporated
herein by reference to Exhibit 10.4 to the Registrant’s Annual Report on
Form 10-K for the fiscal year ended October 31, 1996.
|
|
10.6
|
Industrial
Real Estate Lease dated March 1, 1993 between the Registrant and
Wayne R.
Brown & Bibbits Brown, Trustees of the Wayne R. Brown & Bibbits
Brown Living Trust dated December 30, 1987, incorporated
by reference to Exhibit 10.6 to the Registrant’s Registration Statement on
Form S-1 (File No. 33-80723) declared effective on February 12,
1996.
|
|
10.15*
|
1996
Landec Ag Stock Option Plan and form of Option Agreements, incorporated
herein by reference to Exhibit 10.15 to the Registrant’s Annual Report on
Form 10-K for the fiscal year ended October 31, 1996.
|
|
10.16*
|
Form
of Option Agreement for the 1996 Non-Executive Stock Option Plan,
as
amended, incorporated herein by reference to Exhibit 10.16 to the
Registrant’s Annual Report on Form 10-K for the fiscal year ended October
31, 1996.
|
|
10.17*
|
1996
Amended and Restated Stock Option Plan, incorporated herein by reference
to Exhibit 10.17 to the Registrant’s Quarterly Report on Form 10-Q for the
fiscal quarter ended April 29, 2001.
|
|
10.18*
|
Form
of Option Agreement for 1996 Amended and Restated Stock Option Plan,
incorporated herein by reference to Exhibit 10.17 to the Registrant’s
Quarterly Report on Form 10-Q for the fiscal quarter ended April
30,
1997.
|
|
10.25*
|
Stock
Option Agreement between the Registrant and Nicholas Tompkins dated
as of
November 29, 1999, incorporated herein by reference to Exhibit 10.25
to
the Registrant’s Annual Report on Form 10-K for the fiscal year ended
October 31, 1999.
|
|
10.26*
|
1999
Apio, Inc. Stock Option Plan and form of Option Agreement, incorporated
herein by reference to Exhibit 10.26 to the Registrant’s Annual Report on
Form 10-K for the fiscal year ended October 31,
1999.
|
Exhibit
Number:
|
Exhibit
Title
|
||
10.28*
|
2000
Apio, Inc. Stock Option Plan and form of Option Agreement, incorporated
herein by reference to Exhibit 10.28 to the Registrant’s Annual Report on
Form 10-K filed for the fiscal year ended October 29,
2000.
|
||
10.30*
|
New
Executive Stock Option Plan, incorporated herein by reference to
Exhibit
10.30 to the Registrant’s Annual Report on Form 10-K for the fiscal year
ended October 29, 2000.
|
||
10.35*
|
1996
Non-Executive Stock Option Plan, as amended, incorporated herein
by
reference to Exhibit 10.35 to the Registrant’s Annual Report on Form 10-K
for the fiscal year ended October 28, 2001.
|
||
10.45*
|
Employment
Agreement between the Registrant and Gary T. Steele effective as
of
January 1, 2006, incorporated herein by reference to Exhibit 99.1
to the
Registrant’s Current Report on Form 8-K dated December 15,
2005.
|
||
10.48
|
Supply
Agreement between the Registrant and Apio Fresh LLC and the Growers
listed
therein, dated as of July 3, 2003, incorporated herein by reference
to
Exhibit 2.3 to the Registrant’s Current Report on Form 8-K dated July 3,
2003.
|
||
10.53*
|
1995
Directors’ Stock Option Plan, as amended, incorporated herein by reference
to Exhibit 10.53 to the Registrant’s Annual Report on Form 10-Q for the
fiscal quarter ended May 25, 2003.
|
||
10.56
|
Form
of Notice regarding acceleration of stock option vesting , incorporated
herein by reference to Exhibit 10.56 to the Registrant’s Annual Report on
Form 10-K for the fiscal year ended May 29, 2005.
|
||
10.59
|
Amended
and Restated Credit Agreement by and among Apio, Inc. as Borrower,
and
Wells Fargo Bank, National Association, dated as of November 1, 2005,
incorporated herein by reference to Exhibit 10.57 to the Registrant’s
Quarterly Report on Form 10-Q for the fiscal quarter ended November
27,
2005.
|
||
10.63
|
License
and research and development agreement between the Registrant and
Air
Products and Chemical, Inc. dated March 14, 2006, incorporated herein
by
reference to Exhibit 10.63 to the Registrant’s Annual Report on Form 10-K
for the fiscal year ended May 28, 2006.
|
||
10.64
|
2005
Stock Incentive Plan, incorporated herein by reference to Exhibit
99.1 to
the Registrant's Current Report on Form 8-K dated October 14,
2005.
|
||
10.65
|
Form
of Stock Grant Agreement for 2005 Stock Incentive Plan, incorporated
herein by reference to Exhibit 99.2 to the Registrant's Current Report
on
Form 8-K dated October 14, 2005.
|
||
10.66
|
Form
of Notice of Stock Option Grant and Stock Option Agreement for 2005
Stock
Incentive Plan incorporated herein by reference to Exhibit 10.66
to the
Registrant’s Annual Report on Form 10-K for the fiscal year ended May 28,
2006.
|
||
10.67
|
Form
of Stock Unit Agreement for 2005 Stock Incentive Plan incorporated
herein
by reference to Exhibit 10.67 to the Registrant’s Annual Report on Form
10-K for the fiscal year ended May 28, 2006.
|
||
10.68
|
Form
of Stock Appreciation Right Agreement for 2005 Stock Incentive Plan
incorporated
herein by reference to Exhibit 99.5 to the Registrant's Current Report
on
Form 8-K dated October 14, 2005.
|
10.70
|
Stock
Purchase Agreement dated as of December 1, 2006 by and among the
Registrant, Landec Ag and American Seeds, Inc. incorporated herein
by
reference to Exhibit 10.70 to the Registrant’s Current Report on Form 8-k
dated December 6, 2006.
|
|||
10.71
|
License,
Supply and R&D Agreement dated as of December 1, 2006 by and among the
Registrant, Landec Ag and Monsanto Company incorporated herein by
reference to Exhibit 10.71 to the Registrant’s Current Report on Form 8-k
dated December 6, 2006.
|
|||
10.72*
|
2008
Cash Bonus Plan incorporated herein by reference to the Registrant’s
Current Report on Form 8-k dated May 22, 2007.
|
|||
21.1
|
Subsidiaries
of the Registrant
|
|||
Subsidiary
|
State
of Incorporation
|
|||
Landec
Ag, Inc.
|
Delaware
|
|||
Apio,
Inc.
|
Delaware
|
|||
23.1+
|
Consent
of Independent Registered Public Accounting Firm.
|
|||
24.1+
|
Power
of Attorney - See page 77
|
|||
31.1+
|
CEO
Certification pursuant to section 302 of the Sarbanes-Oxley Act of
2002
|
|||
31.2+
|
CFO
Certification pursuant to section 302 of the Sarbanes-Oxley Act of
2002
|
|||
32.1+
|
CEO
Certification pursuant to section 906 of the Sarbanes-Oxley Act of
2002
|
|||
32.2+
|
CFO
Certification pursuant to section 906 of the Sarbanes-Oxley Act of
2002
|
|||
*
|
Represents
a management contract or compensatory plan or arrangement required
to be
filed as an exhibit to this report pursuant to item 15(b) of Form
10-K.
|
+ | Filed herewith. |
#
|
Confidential
treatment requested as to certain portions. The term “confidential
treatment” and the mark “*” as used throughout the indicated Exhibit means
that material has been omitted and separately filed with the
SEC.
|
LANDEC
CORPORATION
|
||
|
|
|
By: | /s/ Gregory S. Skinner | |
Gregory
S. Skinner
Vice
President of Finance and Administration
and
Chief Financial Officer
|
Signature
|
Title
|
Date
|
||
/s/
Gary T. Steele
|
President and Chief Executive Officer | |||
Gary
T. Steele
|
and
Director (Principal Executive Officer)
|
July
27, 2007
|
||
/s/
Gregory S. Skinner
|
Vice President of Finance and Administration and | |||
Gregory
S. Skinner
|
Chief
Financial Officer (Principal Financial and Accounting
Officer)
|
July
27, 2007
|
||
/s/
Nicholas Tompkins
|
Chief Executive Officer of Apio, Inc., | |||
Nicholas
Tompkins
|
Senior
Vice President and Director
|
July
27, 2007
|
||
/s/
Robert Tobin
|
||||
Robert
Tobin
|
Director
|
July
27, 2007
|
||
/s/
Duke K. Bristow, Ph.D
|
||||
Duke
K. Bristow, Ph.D
|
Director
|
July
27, 2007
|
||
/s/
Frederick Frank
|
||||
Frederick
Frank
|
Director
|
July
27, 2007
|
||
/s/
Stephen E. Halprin
|
||||
Stephen
E. Halprin
|
Director
|
July
27, 2007
|
||
/s/
Richard S. Schneider, Ph.D
|
||||
Richard
S. Schneider, Ph.D
|
Director
|
July
27, 2007
|
||
/s/
Kenneth E. Jones
|
||||
Kenneth
E. Jones
|
Director
|
July
27, 2007
|
Exhibit
Number
|
Exhibit
Title
|
|
23.1
|
Consent
of Independent Registered Public Accounting Firm
|
|
24.1
|
Power
of Attorney. See page 77.
|
|
31.1
|
CEO
Certification pursuant to section 302 of the Sarbanes-Oxley Act of
2002.
|
|
31.2
|
CFO
Certification pursuant to section 302 of the Sarbanes-Oxley Act of
2002.
|
|
32.1
|
CEO
Certification pursuant to section 906 of the Sarbanes-Oxley Act of
2002.
|
|
32.2
|
CFO
Certification pursuant to section 906 of the Sarbanes-Oxley Act of
2002.
|
|
|
|
|
(a) |
Designed
such disclosure controls and procedures, or caused such disclosure
controls and procedures to be designed under our supervision, to
ensure
that material information relating to the registrant, including its
consolidated subsidiaries, is made known to us by others within those
entities, particularly during the period in which this report is
being
prepared;
|
(b) |
Designed
such internal control over financial reporting, or caused such internal
control over financial reporting to be designed under our supervision,
to
provide reasonable assurance regarding the reliability of financial
reporting and the preparation of financial statements for external
purposes in accordance with generally accepted accounting
principles;
|
(c) |
Evaluated
the effectiveness of the registrant's disclosure controls and procedures
and
presented in this report our conclusions about the effectiveness
of the
disclosure controls and procedures, as of the end of the period covered
by
this report based on such evaluation;
and
|
(d) |
Disclosed
in this report any change in the registrant’s internal control over
financial reporting that occurred during the registrant’s most recent
fiscal quarter (the registrant’s fourth fiscal quarter in the case of an
annual report) that has materially affected, or is reasonably likely
to
materially affect, the registrant’s internal control over financial
reporting; and
|
(a) |
All
significant deficiencies and material weaknesses in the design or
operation of internal control over financial reporting which are
reasonably likely to adversely affect the registrant’s ability to record,
process, summarize and report financial information; and
|
(b) |
Any
fraud, whether or not material, that involves management or other
employees who have a significant role in the registrant’s internal control
over financial reporting.
|
Date: July 27, 2007 | ||
/s/ Gary T. Steele | ||
Gary
T. Steele
President
and Chief Executive Officer
|
(a) |
Designed
such disclosure controls and procedures, or caused such disclosure
controls and procedures to be designed under our supervision, to
ensure
that material information relating to the registrant, including its
consolidated subsidiaries, is made known to us by others within those
entities, particularly during the period in which this report is
being
prepared;
|
(b) |
Designed
such internal control over financial reporting, or caused such internal
control over financial reporting to be designed under our supervision,
to
provide reasonable assurance regarding the reliability of financial
reporting and the preparation of financial statements for external
purposes in accordance with generally accepted accounting
principles;
|
(c) |
Evaluated
the effectiveness of the registrant's disclosure controls and procedures
and presented in this report our conclusions about the effectiveness
of
the disclosure controls and procedures, as of the end of the period
covered by this report based on such evaluation; and
|
(d) |
Disclosed
in this report any change in the registrant’s internal control over
financial reporting that occurred during the registrant’s most recent
fiscal quarter (the registrant’s fourth fiscal quarter in the case of an
annual report) that has materially affected, or is reasonably likely
to
materially affect, the registrant’s internal control over financial
reporting; and
|
(a) |
All
significant deficiencies and material weaknesses in the design or
operation of internal control over financial reporting which are
reasonably likely to adversely affect the registrant’s ability to record,
process, summarize and report financial information;
and
|
(b) |
Any
fraud, whether or not material, that involves management or other
employees who have a significant role in the registrant's internal
control
over financial reporting.
|
Date: July 27, 2007 | ||
/s/
Gregory S. Skinner
|
||
Gregory
S. Skinner
Vice
President of Finance and Administration
and
Chief Financial Officer
|
Date: July 27, 2007 | ||
/s/ Gary T. Steele | ||
Gary
T. Steele
Chief
Executive Officer and President
(Principal
Executive Officer)
|
* |
The
foregoing certification is being furnished solely pursuant to Section
906
of the Sarbanes-Oxley Act of 2002 (subsections (a) and (b) of Section
1350, Chapter 63 of Title 18, United States Code) and is not being
filed
as part of the Form 10-K or as a separate disclosure
document.
|
Date: July 27, 2007 | ||
/s/
Gregory S. Skinner
|
||
Gregory
S. Skinner
Vice
President and Chief Financial Officer
(Principal
Accounting Officer)
|
* |
The
foregoing certification is being furnished solely pursuant to Section
906
of the Sarbanes-Oxley Act of 2002 (subsections (a) and (b) of Section
1350, Chapter 63 of Title 18, United States Code) and is not being
filed
as part of the Form 10-K or as a separate disclosure
document.
|