The company attributed the improved earnings to an increase in nut prices and lower administrative and other expenses.

Revenue totaled $3.7 in the third quarter, up from $3.3 million a year earlier. Net cash flow for the third quarter was $609,000, compared to negative cash flow of $107,000 the previous year.

ML Macadamia Orchards recently completed a review of its 2004 nut purchase contracts with Mauna Loa Macadamia Nut Corporation. As a result, ML Macadamia Orchards received three cents per pound more for its nuts, or $552,000, which was paid to the company Oct. 15.

Nut revenues, including the 2004 adjustment, were $2.8 million for the third quarter, compared to $2.5 million in the prior year. The third quarter harvest was 4.2 million pounds or 17% lower than the quarter ended September 30, 2004, and 39% below the historical average for this period. Farming service revenues were $897,000 or 19% higher than the third quarter of last year.

The continued drought in Hawaii has resulted in a smaller crop in the Kea'au region and a late harvest in the Ka'u region, which may delay some deliveries from 2005 to 2006.

Tax Department to charge fee for Act 215 "comfort ruling"

Technology companies wishing to receive a "comfort ruling" from the state Department of Taxation verifying their status as an eligible investment vehicle under Act 215 will now have to pay a $1,000 fee to receive such a ruling.

Act 215 provides a 100 percent tax break for investments in technology companies. Every dollar invested in a qualifying high-technology ventures can be used to reduce state tax obligations by $1. The tax credits are spread over a five-year period and capped at $2 million.