ML Macadamia Orchards LP said yesterday it returned to profitability after five straight losing quarters but warned that its stock likely will be delisted from the New York Stock Exchange for failing to achieve a required market capitalization.

The state's largest macadamia nut grower posted third-quarter earnings of $886,000, or 12 cents per Class A unit, compared with a loss of $436,000, or 6 cents a unit, a year ago. Last quarter's results included a crop insurance recovery of $886,000 for the production year ended June 30, 2008.

Revenue more than doubled to $5.8 million from $2.8 million. Macadamia nut sales jumped 132 percent to $4.6 million from $2 million.

The harvest of 6.8 million pounds was 64 percent higher than the year-earlier quarter “;and significantly better”; than the historical average for the period, according to Dennis Simonis, president and chief executive of ML Macadamia. Contract farming revenue rose 46 percent to $1.2 million from $797,000 due to the timing of farming activities.

“;The third quarter of 2008 marked the return to profitability for the partnership as a good crop of nuts enabled us to begin the harvest early and benefit from higher nut prices, as well as from improved operating efficiencies,”; Simonis said.

He said with continued positive market conditions that he anticipates improved results for the balance of this year.

ML Macadamia said the expected delisting is due to the partnership being unable to maintain the NYSE's required market cap of at least $25 million on a 30-trading-day average. At the end of trading yesterday, the company had a market cap of $18 million.

“;The partnership expects to receive formal notice of a decision to delist the partnership's depositary receipts (representing Class A units of limited partners' interests) from the NYSE,”; ML Macadamia said yesterday. “;While the NYSE decision to delist the depositary receipts is subject to appeal, the partnership believes that it would be in the best interest of its unitholders not to contest this action.”;

ML Macadamia said it is pursuing alternatives for repositioning itself on another exchange and, in the interim, is making arrangements for its depositary receipts to continue to be traded through the Over-the-Counter Bulletin Board.

The company's shares rose

  1 cent yesterday to close at $2.40 after hitting a 52-week low of $2.21 earlier in the session.