Landec Corporation (LNDC) swung to a net profit for the quarter ended Feb. 26, 2017. The company has made a net profit of $3.50 million, or $ 0.13 a share in the quarter, against a net loss of $21.19 million, or $0.78 a share in the last year period.

Revenue during the quarter grew 5.06 percent to $136.57 million from $129.99 million in the previous year period. Gross margin for the quarter expanded 721 basis points over the previous year period to 17.16 percent. Operating margin for the quarter period stood at positive 3.17 percent as compared to a negative 25.87 percent for the previous year period.

Operating income for the quarter was $4.33 million, compared with an operating loss of $33.62 million in the previous year period.

"Landec is focused on innovating new products at both Apio and Lifecore and shifting our product mix to higher value items to increase gross margin over time. For the third quarter, our consolidated gross margin increased 730 basis points to 17.2% compared to 9.9% in the third quarter of fiscal 2016, demonstrating the benefits of our ongoing commitment to innovation which drove a record quarter for Lifecore, Landec's biomaterials business," commented Molly Hemmeter, Landec's president and chief executive officer. "During the third quarter, Apio, Inc., Landec's food business, experienced an improved operating environment that led to an increase in its gross margin. We also launched several significant strategic initiatives that will advance our long-term strategy to broaden our offerings beyond produce into higher margin and less volatile natural products."

For fiscal year 2017, Landec Corporation expects diluted earnings per share to be in the range of $0.38 to $0.40.

For the fourth-quarter 2017, Landec Corporation expects diluted earnings per share to be in the range of $0.09 to $0.11.