x |
QUARTERLY
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
|
94-3025618
|
|
incorporation
or organization)
|
(IRS
Employer
Identification
Number)
|
As
of December 21, 2007, there were 26,090,434 shares of Common Stock
outstanding.
|
Page
|
|||
Facing
sheet
|
1
|
||
Index
|
2
|
||
Part
I.
|
Financial
Information
|
||
Item
1.
|
a)
|
Consolidated
Balance Sheets as of November
25, 2007
and May 27, 2007
|
3
|
b)
|
Consolidated
Statements of Operations for the Three Months and Six Months Ended
November
25, 2007 and
November 26, 2006
|
4
|
|
c)
|
Consolidated
Statements of Cash Flows for the Six Months Ended November
25, 2007
and November 26, 2006
|
5
|
|
d)
|
Notes
to Consolidated Financial Statements
|
6
|
|
Item
2.
|
Management's
Discussion and Analysis of Financial Condition and Results of
Operations
|
13
|
|
Item
3.
|
Quantitative
and Qualitative Disclosures About Market Risk
|
27
|
|
Item
4
|
Controls
and Procedures
|
27
|
|
Part
II.
|
Other
Information
|
28
|
|
Item
1.
|
Legal
Proceedings
|
28
|
|
Item 1A. | Risk Factors |
28
|
|
Item
2.
|
Unregistered
Sales of Equity Securities and Use of Proceeds
|
28
|
|
Item
3.
|
Defaults
Upon Senior Securities
|
28
|
|
Item
4.
|
Submission
of Matters to a Vote of Security Holders
|
28
|
|
Item
5.
|
Other
Information
|
29
|
|
Item
6.
|
Exhibits
|
29
|
|
Signatures
|
30
|
November
25,
2007
|
May
27,
2007
|
||||||
(Unaudited)
|
|||||||
ASSETS
|
|||||||
Current
Assets:
|
|||||||
Cash
and cash equivalents
|
$
|
45,130
|
$
|
62,556
|
|||
Accounts
receivable, less allowance for doubtful accounts of $209 and $206
at
November 25, 2007 and May 27, 2007
|
17,656
|
17,631
|
|||||
Accounts
receivable, related party
|
410
|
554
|
|||||
Inventories,
net
|
8,420
|
6,800
|
|||||
Notes
and advances receivable
|
1,575
|
282
|
|||||
Prepaid
expenses and other current assets
|
1,126
|
1,316
|
|||||
Total
Current Assets
|
74,317
|
89,139
|
|||||
Property,
plant and equipment, net
|
20,259
|
20,270
|
|||||
Goodwill,
net
|
22,535
|
21,402
|
|||||
Trademarks,
net
|
8,228
|
8,228
|
|||||
Notes
receivable
|
—
|
96
|
|||||
Other
assets
|
2,639
|
2,233
|
|||||
Total
Assets
|
$
|
127,978
|
$
|
141,368
|
|||
Current
Liabilities:
|
|||||||
Accounts
payable
|
$
|
14,088
|
$
|
13,705
|
|||
Related
party accounts payable
|
60
|
175
|
|||||
Income
taxes payable
|
537
|
458
|
|||||
Accrued
compensation
|
1,629
|
3,126
|
|||||
Other
accrued liabilities
|
1,593
|
1,340
|
|||||
Related
party note payable
|
82
|
—
|
|||||
Deferred
revenue
|
2,138
|
3,491
|
|||||
Total
Current Liabilities
|
20,127
|
22,295
|
|||||
Related
party note payable
|
76
|
—
|
|||||
Deferred
revenue
|
6,000
|
7,000
|
|||||
Minority
interest
|
1,302
|
1,845
|
|||||
Total
Liabilities
|
27,505
|
31,140
|
|||||
Shareholders’
Equity:
|
|||||||
Common
stock and additional paid in capital,
$0.001 par value; 50,000,000 shares authorized; 26,086,434 and 25,891,168
shares issued and outstanding at November 25, 2007 and May 27, 2007,
respectively
|
130,846
|
129,560
|
|||||
Accumulated
deficit
|
(30,373
|
)
|
(19,332
|
)
|
|||
Total
Shareholders’ Equity
|
100,473
|
110,228
|
|||||
Total
Liabilities and Shareholders’ Equity
|
$
|
127,978
|
$
|
141,368
|
Three
Months Ended
|
Six
Months Ended
|
||||||||||||
November
25,
|
November
26,
|
November
25,
|
November
26,
|
||||||||||
2007
|
2006
|
2007
|
2006
|
||||||||||
Revenues:
|
|||||||||||||
Product
sales
|
$
|
56,274
|
$
|
53,584
|
$
|
116,075
|
$
|
103,631
|
|||||
Services
revenue, related party
|
909
|
831
|
1,983
|
1,674
|
|||||||||
License
fees
|
1,550
|
681
|
3,131
|
881
|
|||||||||
Research,
development and royalty revenues
|
228
|
27
|
399
|
35
|
|||||||||
Royalty
revenues, related party
|
—
|
71
|
32
|
121
|
|||||||||
Total
revenues
|
58,961
|
55,194
|
121,620
|
106,342
|
|||||||||
Cost
of revenue:
|
|||||||||||||
Cost
of product sales
|
48,777
|
45,557
|
100,369
|
88,845
|
|||||||||
Cost
of product sales, related party
|
571
|
673
|
1,782
|
2,222
|
|||||||||
Cost
of services revenue
|
756
|
688
|
1,638
|
1,442
|
|||||||||
Total
cost of revenue
|
50,104
|
46,918
|
103,789
|
92,509
|
|||||||||
Gross
profit
|
8,857
|
8,276
|
17,831
|
13,833
|
|||||||||
Operating
costs and expenses:
|
|||||||||||||
Research
and development
|
788
|
840
|
1,610
|
1,624
|
|||||||||
Selling,
general and administrative
|
4,239
|
7,289
|
8,785
|
12,191
|
|||||||||
Total
operating costs and expenses
|
5,027
|
8,129
|
10,395
|
13,815
|
|||||||||
Operating
income
|
3,830
|
147
|
7,436
|
18
|
|||||||||
Interest
income
|
607
|
177
|
1,388
|
413
|
|||||||||
Interest
expense
|
(5
|
)
|
(121
|
)
|
(13
|
)
|
(191
|
)
|
|||||
Minority
interest expense
|
(109
|
)
|
(97
|
)
|
(229
|
)
|
(115
|
)
|
|||||
Other
income (expense)
|
—
|
2
|
—
|
(3
|
)
|
||||||||
Net
income before taxes
|
4,323
|
108
|
8,582
|
122
|
|||||||||
Income
tax expense
|
(1,198
|
)
|
—
|
(2,380
|
)
|
—
|
|||||||
Net
Income
|
$
|
3,125
|
$
|
108
|
$
|
6,202
|
$
|
122
|
|||||
Basic
net income per share
|
$
|
0.12
|
$
|
0.00
|
$
|
0.24
|
$
|
0.00
|
|||||
Diluted
net income (loss) per share (Note 6)
|
$
|
0.12
|
$
|
(0.00
|
)
|
$
|
0.23
|
$
|
(0.01
|
)
|
|||
Shares
used in per share computation:
|
|||||||||||||
Basic
|
26,070
|
25,039
|
26,004
|
24,988
|
|||||||||
Diluted
|
27,020
|
25,039
|
26,970
|
24,988
|
Six
Months Ended
|
|||||||
November
25,
|
November
26,
|
||||||
2007
|
2006
|
||||||
Cash
flows from operating activities:
|
|||||||
Net
income
|
$
|
6,202
|
$
|
122
|
|||
Adjustments
to reconcile net income to net cash provided by (used in) operating
activities:
|
|||||||
Depreciation
and amortization
|
1,469
|
1,766
|
|||||
Income
tax expense not payable
|
2,229
|
—
|
|||||
Stock-based
compensation expense
|
505
|
382
|
|||||
Loss
on sale of property and equipment
|
—
|
29
|
|||||
Minority
interest
|
233
|
123
|
|||||
Investment
in unconsolidated business
|
—
|
(481
|
)
|
||||
Changes
in current assets and current liabilities:
|
|||||||
Accounts
receivable, net
|
(25
|
)
|
(532
|
)
|
|||
Accounts
receivable, related party
|
144
|
—
|
|||||
Inventories,
net
|
(1,620
|
)
|
(9,553
|
)
|
|||
Issuance
of notes and advances receivable
|
(1,592
|
)
|
(1,427
|
)
|
|||
Collection
of notes and advances receivable
|
288
|
221
|
|||||
Prepaid
expenses and other current assets
|
190
|
1
|
|||||
Accounts
payable
|
383
|
1,920
|
|||||
Related
party accounts payable
|
(115
|
)
|
(465
|
)
|
|||
Income
taxes payable
|
79
|
—
|
|||||
Accrued
compensation
|
(1,497
|
)
|
(1,123
|
)
|
|||
Other
accrued liabilities
|
253
|
(1
|
)
|
||||
Deferred
revenue
|
(2,353
|
)
|
2,248
|
||||
Net
cash provided by (used in) operating activities
|
4,773
|
(6,770
|
)
|
||||
Cash
flows from investing activities:
|
|||||||
Purchases
of property, plant and equipment
|
(1,458
|
)
|
(4,651
|
)
|
|||
Acquisition
of business and earnout payments
|
(29
|
)
|
(1,050
|
)
|
|||
Issuance
of notes and advances receivable
|
(9
|
)
|
(27
|
)
|
|||
Collection
of notes and advances receivable
|
116
|
161
|
|||||
Net
cash used in investing activities
|
(1,380
|
)
|
(5,567
|
)
|
|||
Cash
flows from financing activities:
|
|||||||
Proceeds
from sale of common stock
|
781
|
1,017
|
|||||
Proceeds
from the exercise of subsidiary options
|
—
|
10
|
|||||
Repurchase
of subsidiary common stock and options (Note 8)
|
(20,837
|
)
|
—
|
||||
(Increase)
decrease in other assets
|
(406
|
)
|
67
|
||||
Borrowings
on lines of credit
|
—
|
4,941
|
|||||
Payment
on related party note payable (Note 11)
|
(74
|
)
|
—
|
||||
Payments
on long term debt
|
—
|
(1,979
|
)
|
||||
Distributions
to minority interest
|
(283
|
)
|
(302
|
)
|
|||
Net
cash (used in) provided by financing activities
|
(20,819
|
)
|
3,754
|
||||
Net
decrease in cash and cash equivalents
|
(17,426
|
)
|
(8,583
|
)
|
|||
Cash
and cash equivalents at beginning of period
|
62,556
|
20,519
|
|||||
Cash
and cash equivalents at end of period
|
$
|
45,130
|
$
|
11,936
|
|||
Supplemental
schedule of noncash operating activities:
|
|||||||
Preferred
stock received from investment in unconsolidated business
|
$
|
—
|
$
|
481
|
Three Months
Ended
November
25,
2007
|
Three Months
Ended
November
26,
2006
|
Six
Months
Ended
November 25,
2007
|
Six
Months
Ended
November 26,
2006
|
||||||||||
Research
and development
|
$
|
39,000
|
$
|
23,000
|
$
|
70,000
|
$
|
42,000
|
|||||
Selling,
general and administrative
|
$
|
142,000
|
$
|
113,000
|
$
|
435,000
|
$
|
340,000
|
|||||
Total
amort. of stock-based compensation
|
$
|
181,000
|
$
|
136,000
|
$
|
505,000
|
$
|
382,000
|
Three
Months
Ended
November
25,
2007
|
Three
Months
Ended
November
26,
2006
|
Six
Months
Ended
November
25,
2007
|
Six
Months
Ended
November
26,
2006
|
||||||||||
Numerator:
|
|||||||||||||
Net
income
|
$
|
3,125
|
$
|
108
|
$
|
6,202
|
$
|
122
|
|||||
Less:
Minority interest in income of subsidiary
|
—
|
(228
|
)
|
(89
|
)
|
(341
|
)
|
||||||
Net
income for diluted net income per share
|
$
|
3,125
|
$
|
(120
|
)
|
$
|
6,113
|
$
|
(219
|
)
|
|||
Denominator:
|
|||||||||||||
Weighted
average shares for basic net income per share
|
26,070
|
25,039
|
26,004
|
24,988
|
|||||||||
Effect
of dilutive securities:
|
|||||||||||||
Stock
Options
|
950
|
—
|
966
|
—
|
|||||||||
Weighted
average shares for diluted net income per share
|
27,020
|
25,039
|
26,970
|
24,988
|
|||||||||
Diluted
net income per share
|
$
|
0.12
|
$
|
(0.00
|
)
|
$
|
0.23
|
$
|
(0.01
|
)
|
November
25,
2007
|
May
27,
2007
|
||||||
Finished
goods
|
$
|
2,442
|
$
|
2,273
|
|||
Raw
material
|
5,978
|
4,527
|
|||||
Total
|
$
|
8,420
|
$
|
6,800
|
12.
|
Comprehensive
Income (Loss)
|
13.
|
Shareholders’
Equity
|
Three months ended November 25, 2007
|
Food Products
Technology
|
Technology
Licensing
|
Corporate
|
TOTAL
|
|||||||||
Net
revenues
|
$
|
57,296
|
$
|
1,665
|
$
|
—
|
$
|
58,961
|
|||||
International
sales
|
$
|
17,281
|
$
|
¾
|
$
|
¾
|
$
|
17,281
|
|||||
Gross
profit
|
$
|
7,192
|
$
|
1,665
|
$
|
—
|
$
|
8,857
|
|||||
Net
income (loss)
|
$
|
3,540
|
$
|
1,163
|
$
|
(1,578
|
)
|
$
|
3,125
|
||||
Interest
expense
|
$
|
5
|
$
|
—
|
$
|
¾
|
$
|
5
|
|||||
Interest
income
|
$
|
89
|
$
|
—
|
$
|
518
|
$
|
607
|
|||||
Depreciation
and amortization
|
$
|
695
|
$
|
58
|
$
|
—
|
$
|
753
|
|||||
Income
tax expense
|
$
|
—
|
$
|
—
|
$
|
1,198
|
$
|
1,198
|
|||||
Three
months ended November
26, 2006
|
|||||||||||||
Net
revenues
|
$
|
54,469
|
$
|
725
|
$
|
—
|
$
|
55,194
|
|||||
International
sales
|
$
|
17,964
|
$
|
¾
|
$
|
¾
|
$
|
17,964
|
|||||
Gross
profit
|
$
|
7,641
|
$
|
635
|
$
|
—
|
$
|
8,276
|
|||||
Net
income (loss)
|
$
|
4,027
|
$
|
(2,792
|
)
|
$
|
(1,127
|
)
|
$
|
108
|
|||
Interest
expense
|
$
|
4
|
$
|
117
|
$
|
¾
|
$
|
121
|
|||||
Interest
income
|
$
|
153
|
$
|
—
|
$
|
24
|
$
|
177
|
|||||
Depreciation
and amortization
|
$
|
660
|
$
|
219
|
$
|
—
|
$
|
879
|
|||||
Income
tax expense
|
$
|
—
|
$
|
—
|
$
|
—
|
$
|
—
|
|||||
Six
months ended November
25, 2007
|
|||||||||||||
Net
revenues
|
$
|
118,294
|
$
|
3,326
|
$
|
—
|
$
|
121,620
|
|||||
International
sales
|
$
|
36,531
|
$
|
¾
|
$
|
¾
|
$
|
36,531
|
|||||
Gross
profit
|
$
|
14,505
|
$
|
3,326
|
$
|
—
|
$
|
17,831
|
|||||
Net
income (loss)
|
$
|
7,216
|
$
|
2,372
|
$
|
(3,386
|
)
|
$
|
6,202
|
||||
Interest
expense
|
$
|
13
|
$
|
—
|
$
|
¾
|
$
|
13
|
|||||
Interest
income
|
$
|
312
|
$
|
—
|
$
|
1,076
|
$
|
1,388
|
|||||
Depreciation
and amortization
|
$
|
1,354
|
$
|
115
|
$
|
—
|
$
|
1,469
|
|||||
Income
tax expense
|
$
|
—
|
$
|
—
|
$
|
2,380
|
$
|
2,380
|
|||||
Six
months ended November
26, 2006
|
|||||||||||||
Net
revenues
|
$
|
105,295
|
$
|
1,047
|
$
|
—
|
$
|
106,342
|
|||||
International
sales
|
$
|
31,774
|
$
|
¾
|
$
|
¾
|
$
|
31,774
|
|||||
Gross
profit
|
$
|
12,995
|
$
|
838
|
$
|
—
|
$
|
13,833
|
|||||
Net
income (loss)
|
$
|
6,453
|
$
|
(5,459
|
)
|
$
|
(872
|
)
|
$
|
122
|
|||
Interest
expense
|
$
|
74
|
$
|
117
|
$
|
¾
|
$
|
191
|
|||||
Interest
income
|
$
|
345
|
$
|
—
|
$
|
68
|
$
|
413
|
|||||
Depreciation
and amortization
|
$
|
1,332
|
$
|
434
|
$
|
—
|
$
|
1,766
|
|||||
Income
tax expense
|
$
|
—
|
$
|
—
|
$
|
—
|
$
|
—
|
|||||
·
|
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 expanded in fiscal year 2007 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, CalEx.
Through CalEx, 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 vegetable salads
and
snack packs. During the last twelve months, Apio has introduced 11
new
products.
|
Three months
ended 11/25/07
|
|
Three months
ended 11/26/06
|
Change
|
|
Six months
ended 11/25/07
|
|
Six months
ended 11/26/06
|
|
Change
|
||||||||||
Apio
Value Added
|
$
|
39,264
|
$
|
35,812
|
10
|
%
|
$
|
78,658
|
$
|
70,842
|
11
|
%
|
|||||||
Apio
Packaging
|
177
|
41
|
332
|
%
|
330
|
54
|
511
|
%
|
|||||||||||
Technology
Subtotal
|
39,441
|
35,853
|
10
|
%
|
78,988
|
70,896
|
11
|
%
|
|||||||||||
Apio
Trading
|
17,855
|
18,616
|
(4
|
)%
|
39,306
|
34,399
|
14
|
%
|
|||||||||||
Total
Apio
|
57,296
|
54,469
|
5
|
%
|
118,294
|
105,295
|
12
|
%
|
|||||||||||
Tech.
Licensing
|
1,665
|
725
|
130
|
%
|
3,326
|
1,047
|
218
|
%
|
|||||||||||
Total
Revenues
|
$
|
58,961
|
$
|
55,194
|
7
|
%
|
$
|
121,620
|
$
|
106,342
|
14
|
%
|
Three months
ended 11/25/07
|
|
Three months
ended 11/26/06
|
|
Change
|
|
Six months
ended 11/25/07
|
|
Six months
ended 11/26/06
|
|
Change
|
|||||||||
Apio
Value Added
|
$
|
6,029
|
$
|
6,420
|
(6
|
)%
|
$
|
12,132
|
$
|
10,943
|
11
|
%
|
|||||||
Apio
Packaging
|
146
|
16
|
813
|
%
|
265
|
20
|
1225
|
%
|
|||||||||||
Technology
Subtotal
|
6,175
|
6,436
|
(4
|
)%
|
12,397
|
10,963
|
13
|
%
|
|||||||||||
Apio
Trading
|
1,017
|
1,205
|
(16
|
)%
|
2,108
|
2,032
|
4
|
%
|
|||||||||||
Total
Apio
|
7,192
|
7,641
|
(6
|
)%
|
14,505
|
12,995
|
12
|
%
|
|||||||||||
Tech.
Licensing
|
1,665
|
635
|
162
|
%
|
3,326
|
838
|
297
|
%
|
|||||||||||
Total
Gross Profit
|
$
|
8,857
|
$
|
8,276
|
7
|
%
|
$
|
17,831
|
$
|
13,833
|
29
|
%
|
Three months
ended 11/25/07
|
|
Three months
ended 11/26/06
|
|
Change
|
|
Six months
ended 11/25/07
|
|
Six months
ended 11/26/06
|
|
Change
|
|||||||||
Research and
Development:
|
|||||||||||||||||||
Apio
|
$
|
286
|
$
|
323
|
(11
|
)%
|
$
|
656
|
$
|
563
|
17
|
%
|
|||||||
Tech.
Licensing
|
502
|
517
|
(3
|
)%
|
954
|
1,061
|
(10
|
)%
|
|||||||||||
Total
R&D
|
$
|
788
|
$
|
840
|
(6
|
)%
|
$
|
1,610
|
$
|
1,624
|
(1
|
)%
|
|||||||
Selling,
General and Administrative:
|
|||||||||||||||||||
Apio
|
$
|
3,340
|
$
|
3,343
|
0
|
%
|
$
|
6,701
|
$
|
6,134
|
9
|
%
|
|||||||
Corporate
|
899
|
3,946
|
(77
|
)%
|
2,084
|
6,057
|
(66
|
)%
|
|||||||||||
Total
S,G&A
|
$
|
4,239
|
$
|
7,289
|
(42
|
)%
|
$
|
8,785
|
$
|
12,191
|
(28
|
)%
|
Three months
ended 11/25/07
|
|
Three months
ended 11/26/06
|
|
Change
|
|
Six months
ended 11/25/07
|
|
Six months
ended 11/26/06
|
|
Change
|
|||||||||
Interest Income
|
$
|
607
|
$
|
177
|
243
|
%
|
$
|
1,388
|
$
|
413
|
236
|
%
|
|||||||
Interest
Expense
|
(5
|
)
|
(121
|
)
|
(96
|
)%
|
(13
|
)
|
(191
|
)
|
(93
|
)%
|
|||||||
Minority
Int. Exp.
|
(109
|
)
|
(97
|
)
|
12
|
%
|
(229
|
)
|
(115
|
)
|
99
|
%
|
|||||||
Other
Income (Exp.)
|
—
|
2
|
N/M
|
—
|
(3
|
)
|
N/M
|
||||||||||||
Total
Other
|
$
|
493
|
$
|
(39
|
)
|
N/M
|
$
|
1,146
|
$
|
104
|
1002
|
%
|
|||||||
Income
Taxes
|
$
|
(1,198
|
)
|
$
|
—
|
N/M
|
$
|
(2,380
|
)
|
$
|
—
|
N/M
|
·
|
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.
|
Number
of Shares
|
|||||||
Voted
For
|
Withheld
|
||||||
1. Four
Class II directors were elected by the margins indicated to serve
for a
term of office to expire at the second succeeding annual meeting
of
shareholders at which their successors will be elected and
qualified:
|
|||||||
Gary
T. Steele
Nicholas
Tompkins
Duke
K. Bristow, Ph.D.
Robert
Tobin
|
22,213,700
22,213,999
22,271,388
22,215,379
|
704,710
704,411
647,022
703,031
|
|||||
The
Class I directors were not up for election at the Annual Meeting.
The four
current Class I directors, Frederick Frank, Stephen E. Halprin, Richard
S.
Schneider, Ph.D. and Kenneth E. Jones will serve as Class I directors
until the next Annual Meeting, when their successors will be elected
and
qualified.
|
Voted
For
|
Voted
Against
|
Abstain
|
||||||||
2. To
ratify the appointment of Ernst & Young LLP as independent public
accountants of the Company for the 2008 fiscal year.
|
22,800,719
|
104,601
|
13,089
|
Voted
For
|
Voted
Against
|
Abstain
|
||||||||
3. To
reincorporate the Company from California to Delaware.
|
9,528,239
|
7,165,449
|
26,492
|
Exhibit
|
|
|
Number
|
Exhibit Title: | |
10.73+
|
Amendment
No. 1 to the Amended and Restated Credit Agreement between Apio,
Inc. and
Wells Fargo Bank, N.A., dated as of September 1, 2007.
|
|
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.
|
LANDEC
CORPORATION
|
||
By:
|
/s/
Gregory S. Skinner
|
|
Gregory S. Skinner
|
||
Vice
President, Finance and Chief Financial Officer
|
||
(Principal
Financial and Accounting
Officer)
|
Fiscal
Year to Date Period Ending
|
Minimum
Net Income
|
August 31
of each year
|
$1,000,000
|
November 30
of each year
|
$2,000,000
|
February 28
or 29, as applicable,
of
each year
|
$3,000,000
|
May 31
of each year
|
$4,000,000
|
APIO,
INC.
|
WELLS
FARGO BANK, NATIONAL ASSOCIATION
|
|||
By: | By: | |||
Kathleen Morgan Chief
Financial Officer
|
Tim
Palmer
Vice
President
|
APIO,
INC.
|
WELLS
FARGO BANK, NATIONAL ASSOCIATION
|
|||
By: | By: | |||
Kathleen Morgan Chief
Financial Officer
|
Tim
Palmer
Vice
President
|
/s/
Gary T. Steele
|
Gary
T. Steele
|
Chief
Executive Officer
|
/s/
Gregory S. Skinner
|
Gregory
S. Skinner
|
Chief
Financial Officer
|
/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-Q or as a separate disclosure
document.
|
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-Q or as a separate disclosure
document.
|