Monterey Gourmet Foods (PSTA), a manufacturer of fresh gourmet refrigerated food products, reported Tuesday a loss in its fourth quarter.
Monterey reported a fourth-quarter net loss of $20.3 million, or $1.21 a share, as against net income of $641,000, or $0.04 a share, posted in the prior year. The results for the quarter included impairment charges and write-down of $19.1 million.
Revenue decreased to $24.5 million from $26.8 million, reflecting a decline in revenues across all segments - Gourmet Foods, Casual Gourmet brand and Sonoma Foods.
Eric Eddings, President and Chief Executive of Monterey said that the company would focus more on its core competencies in natural foods and fresh pastas and exit from non-core businesses. He added that the company reduced headcount, froze wages, and cut other selling, general and administrative expenses, which could lower expenses by about $2 million in 2009.
For the full year, net loss was $22.5 million, or $1.34 a share, as compared to a net income of $1.7 million, or $0.10 a share posted in 2007. The results of 2008 included charges of $20.6 million. Revenue dipped to $97.2 million from $100.5 million.
PSTA closed Monday at $0.78 on the Nasdaq.
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