Ten in a Row at Monterey

SALINAS, Calif.--Monterey Pasta (NASDAQ:PSTA) recorded its tenth consecutive profitable quarter for the fiscal period ended Sept. 26. Revenues hit $9.9 million, up from $6.7 million a year ago, while gross margin dropped to 38 percent of sales from 40 percent achieved in the comparable 1998 quarter. Operating expense fell as a percentage of sales, compared to a year ago, helping Monterey to its first one million dollar earnings quarter. At $1.03 million or $.08 per share, the quarter's earnings were almost double the $.57 million or $.05 per share earned in the same period last year.

"Our sales and profits are at all time highs," noted Lance Hewitt, chief executive officer and president. "These records are attributed to growth with existing customers, the success of our national expansion strategy and the introduction of new products, such as Gnocchi with Parmesan. We were especially encouraged by the fact that our quarterly net income of $.08 per share was achieved even as we absorbed the transition costs associated with the recent acquisition of Frescala Foods and start-up costs for Homestyle Fresh Soups and gnocchi."