XML 29 R19.htm IDEA: XBRL DOCUMENT v2.4.0.6
Note 14 - Business Segment Reporting
 6 Months Ended
Nov. 27, 2011
Segment Reporting Disclosure [Text Block]
  14.       Business Segment Reporting

The Company manages its business operations through four strategic business units. Based upon the information reported to the chief operating decision maker, who is the Chief Executive Officer, the Company has the following reportable segments: the Food Products Technology segment, the Food Export segment, the Hyaluronan-based Biomaterials segment and the Technology Licensing segment.

The Food Products Technology segment markets and packs specialty packaged whole and fresh-cut vegetables that incorporate the BreatheWay specialty packaging for the retail grocery, club store and food services industry.  In addition, the Food Products Technology segment sells BreatheWay packaging to partners for non-vegetable products.  The Food Export segment consists of revenues generated from the purchase and sale of primarily whole commodity fruit and vegetable products to Asia and domestically.  The HA-based Biomaterials segment sells products utilizing hyaluronan, a naturally occurring polysaccharide that is widely distributed in the extracellular matrix of connective tissues in both animals and humans for medical use primarily in the Ophthalmic, Orthopedic and Veterinary markets.  The Technology Licensing segment licenses Landec’s patented Intellicoat seed coatings to the farming industry and licenses the Company’s Intelimer polymers for personal care products and other industrial products.  Corporate includes corporate general and administrative expenses, non Food Products Technology and non HA-based Biomaterials interest income and Company-wide income tax expenses.  All of the assets of the Company are located within the United States of America.  The Company’s international sales were as follows (in millions):

   
Three Months Ended
   
Six Months Ended
 
   
November 27,
   
November 28,
   
November 27,
   
November 28,
 
   
2011
   
2010
   
2011
   
2010
 
Taiwan
  $ 9.6     $ 8.3     $ 19.0     $ 16.8  
Indonesia
  $ 6.4     $ 5.0     $ 13.9     $ 8.7  
Canada
  $ 4.9     $ 4.5     $ 9.9     $ 9.2  
 Belgium
  $ 6.3     $ 4.7     $ 8.1     $ 7.7  
Japan
  $ 3.8     $ 2.6     $ 6.2     $ 5.0  
All Other Countries
  $ 5.8     $ 0.4     $ 9.7     $ 8.1  

Operations by segment consisted of the following (in thousands):

 
Three Months Ended November 27, 2011
 
Food Products Technology
   
Food Export
   
HA-based Biomaterials
   
Technology Licensing
   
Corporate
   
TOTAL
 
                                     
Net sales
  $ 46,693     $ 24,229     $ 9,235     $ 1,413     $ —     $ 81,570  
International sales
  $ 4,640     $ 24,150     $ 7,884     $ —      $ —     $ 36,674  
Gross profit
  $ 4,531     $ 1,802     $ 5,264     $ 1,413     $ —     $ 13,010  
Net income (loss)
  $ 2,637     $ 1,093     $ 2,838     $ 364     $ (3,592 )   $ 3,340  
Depreciation and amortization
  $ 771     $ 2     $ 555     $ 46     $ —     $ 1,374  
Dividend income
  $ 281     $ —     $ —     $ —     $ —     $ 281  
Interest income
  $ 22     $ —     $ 58     $ —     $ 1     $ 81  
Interest expense
  $ —     $ —     $ 163     $ —     $ —     $ 163  
Income tax expense
  $ —     $ —     $ —     $ —     $ 2,049     $ 2,049  
                                                 
Three Months Ended November 28, 2010
                                               
Net sales
  $ 40,649     $ 19,635     $ 8,422     $ 1,462     $ —     $ 70,168  
International sales
  $ 4,166     $ 19,571     $ 6,325     $ —     $ —     $ 30,062  
Gross profit
  $ 3,752     $ 1,230     $ 5,411     $ 1,462     $ —     $ 11,855  
Net income (loss)
  $ 853     $ 607     $ 2,841     $ 544     $ (2,790 )   $ 2,055  
Depreciation and amortization
  $ 777     $ 2     $ 478     $ 38     $ —     $ 1,295  
Interest income
  $ 45     $ —     $ 36     $ —     $ 36     $ 117  
Interest expense
  $ —     $ —     $ 209     $ —     $ —     $ 209  
Income tax expense
  $ —     $ —     $ —     $ —     $ 1,209     $ 1,209  

Six Months Ended November 27, 2011
                                   
Net sales
  $ 90,056     $ 45,584     $ 16,356     $ 2,875     $ —     $ 154,871  
International sales
  $ 9,711     $ 45,460     $ 11,650     $ —     $ —     $ 66,821  
Gross profit
  $ 10,590     $ 2,816     $ 7,979     $ 2,875     $ —     $ 24,260  
Net income (loss)
  $ 5,995     $ 1,390     $ 3,300     $ 738     $ (6,271 )   $ 5,152  
Depreciation and amortization
  $ 1,551     $ 4     $ 1,083     $ 91     $ —     $ 2,729  
Dividend income
  $ 563     $ —     $ —     $ —     $ —     $ 563  
Interest income
  $ 30     $ —     $ 105     $ —     $ 22     $ 157  
Interest expense
  $ —     $ —     $ 340     $ —     $ —     $ 340  
Income tax expense
  $ —     $ —     $ ―     $ —     $ 3,159     $ 3,159  

 
Six Months Ended November 28, 2010
 
 
Food Products Technology
   
 
Food Export
   
HA-based Biomaterials
   
Technology Licensing
   
 
Corporate
   
 
TOTAL
 
Net sales
  $ 81,207     $ 36,118     $ 14,806     $ 2,989     $ —     $ 135,120  
International sales
  $ 8,771     $ 36,017     $ 10,758     $ —     $ —     $ 55,546  
Gross profit
  $ 10,115     $ 2,161     $ 8,406     $ 2,989     $ —     $ 23,671  
Net income (loss)
  $ 4,456     $ 984     $ 3,535     $ 1,116     $ (5,732 )   $ 4,359  
Depreciation and amortization
  $ 1,561     $ 4     $ 962     $ 75     $ —     $ 2,602  
Interest income
  $ 74     $ —     $ 62     $ —     $ 88     $ 224  
Interest expense
  $ 2     $ —     $ 433     $ —     $ —     $ 435  
Income tax expense
  $ —     $ —     $ ―     $ —     $ 2,561     $ 2,561  

During the six months ended November 27, 2011 and November 28, 2010, sales to the Company’s top five customers accounted for 42% and 43%, respectively, of revenues.  The Company’s top customer from the Food Products Technology segment accounting for 16% and 15% for the six months ended November 27, 2011 and November 28, 2010, respectively.  The Company expects that, for the foreseeable future, a limited number of customers may continue to account for a significant portion of its net revenues.