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| 8-K - KEY TECHNOLOGY, INC. FORM 8-K 4-29-2010 - KEY TECHNOLOGY INC | form8kbody.htm |
Exhibit
99.1
FOR IMMEDIATE
RELEASE: April 29,
2010
KEY
TECHNOLOGY ANNOUNCES FISCAL 2010 SECOND QUARTER RESULTS
Record
Second Quarter Revenue and Profits
WALLA WALLA, WA -- Key
Technology, Inc. (Nasdaq: KTEC) announced today sales and operating results for
the second quarter of fiscal 2010 ended March 31, 2010.
Net sales
for the three-month period ended March 31, 2010 totaled $30.7 million, compared
to $23.3 million recorded in the corresponding quarter last year. The
Company reported net earnings for the quarter of $1.4 million, or $0.26 per
diluted share, compared to a net loss of $1.5 million, or $0.29 per diluted
share, in the same period a year ago.
Net sales
for the six months ended March 31, 2010 were $53.2 million, compared with $50.6
million for the comparable period in fiscal 2009. The Company
reported net earnings for the fiscal 2010 six-month period ended March 31, 2010
of $1.3 million, or $0.25 per diluted share, compared to a net loss of $901,000,
or $0.17 per diluted share, for the corresponding six-month period in fiscal
2009.
The net
earnings for the three- and six-month periods ended March 31, 2010 included
pre-tax gains of $325,000 and $475,000 respectively, related to actual and
anticipated collections of its note receivable from the sale in fiscal 2007 of
its interest in the InspX joint venture. The net loss for the three-
and six-month periods ended March 31, 2009 included pre-tax charges of $845,000
related to a workforce reduction and a $343,000 write-off of previously incurred
costs associated with a potential facility expansion.
David
Camp, President and Chief Executive Officer, stated, “We are pleased with the
market acceptance of our new products, which contributed to increased revenues
in the quarter. It is still difficult for us to determine the
strength and duration of the recovery we are experiencing; however, we are
encouraged by the improved results attributable to the hard work and actions we
initiated in 2009.”
The gross
profit for the second quarter of fiscal 2010 was $10.8 million, compared to $8.1
million in the corresponding period last year. As a percentage of
sales, gross profit was 35.2% and 35.0% in the second quarters of fiscal 2010
and 2009, respectively. For the six-month period ended March 31,
2010, gross profit was $18.7 million, compared to $19.4 million for the same
six-month period of fiscal 2009, or 35.1% and 38.4% of sales,
respectively.
Camp
continued, “Price competition in our markets remains fierce, reflecting excess
manufacturing capacity in our industry and adversely affecting gross
margins.”
Operating
expenses for the quarter ended March 31, 2010 were $9.0 million, or 29.2% of
sales, compared to $9.8 million, or 42.3% of sales, in the same quarter last
year. Operating expenses for the six months ended March 31, 2010 were
$16.9 million, or 31.8% of sales, compared to $20.3 million, or 40.2% of sales,
for the corresponding period of fiscal 2009.
Camp
further commented, “The increase in operating expenses from the first quarter to
the second quarter of fiscal 2010 was anticipated. This increase was
primarily the result of increased sales commissions due to higher sales volume
and increased sales by outside sales representatives, and the reinstatement of
employee salary and benefit reductions taken in the prior fiscal
year. In addition, there were cost savings in the first quarter of
fiscal 2010 due to holiday shutdowns that were not replicated in the second
quarter.”
Key’s
backlog at the end of the second quarter of fiscal 2010 was $31.6 million,
compared to $32.0 million one year ago. New orders received during
the second quarter were $26.9 million, compared to $25.9 million in the
corresponding period last year. New orders for the six months ended
March 31, 2010 were $55.2 million, compared to $48.8 million for the
corresponding period in fiscal 2009.
Conference
Call
The
Company's conference call for the Company’s fiscal 2010 second quarter can be
heard live on the Internet at 2:00 p.m. Pacific Time on Thursday, April
29. To access the call, go to the Company’s website at
www.key.net/investor.cfm at least fifteen minutes prior to the call to download
and install any necessary audio software.
About
Key Technology
Key
Technology, Inc., headquartered in Walla Walla, Washington, is a worldwide
leader in the design and manufacture of process automation systems for the food
processing, industrial and pharmaceutical markets. The Company’s
products integrate electro-optical inspection and sorting, specialized conveying
and product preparation equipment, which allow processors to improve quality,
increase yield and reduce cost. Key has manufacturing facilities in
Washington, Oregon, and the Netherlands, and worldwide sales and service
coverage.
This
release contains forward-looking statements within the meaning of the "safe
harbor" provisions of the Private Securities Litigation Reform Act of
1995. These statements are based on management's current expectations
or beliefs and are subject to a number of factors and uncertainties that could
cause actual results to differ materially from those described in the
forward-looking statements. The forward-looking statements in this
release address future financial and operating results.
The
following factors, among others, could cause actual results to differ materially
from those described in the forward-looking statements:
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·
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current
worldwide economic conditions may adversely affect the Company’s business
and results of operations, and the business of the Company’s
customers;
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·
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adverse
economic conditions, particularly in the food processing industry, either
globally or regionally, may adversely affect the Company's
revenues;
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·
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the
loss of any of the Company’s significant customers could reduce the
Company’s revenues and
profitability;
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·
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the
Company is subject to pricing pressure from its larger customers, which
may reduce the Company’s
profitability;
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·
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the
failure of any of the Company's independent sales representatives to
perform as expected would harm the Company's net
sales;
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·
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the
Company may make acquisitions that could disrupt the Company’s operations
and harm the Company’s operating
results;
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·
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the
Company's international operations subject the Company to a number of
risks that could adversely affect the Company’s revenues, operating
results and growth;
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·
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competition
and advances in technology may adversely affect sales and
prices;
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·
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the
failure of the Company’s new products to compete successfully in either
existing or new markets;
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·
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the
Company's inability to retain and recruit experienced personnel may
adversely affect the Company’s business and prospects for
growth;
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·
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the
loss of members of the Company’s management team could substantially
disrupt the Company’s business
operations;
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·
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the
inability of the Company to protect the Company’s intellectual property,
especially as the Company expands geographically, may adversely affect the
Company’s competitive advantage;
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·
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intellectual
property-related litigation expenses and other costs resulting from
infringement claims asserted against the Company by third parties may
adversely affect the Company’s results of operations and the Company’s
customer relations;
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·
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the
Company's dependence on certain suppliers may leave the Company
temporarily without adequate access to raw materials or
products;
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·
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the
limited availability and possible cost fluctuations of materials used in
the Company’s products could adversely affect the Company’s gross profits;
and
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·
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the
price of the Company's common stock may fluctuate significantly and this
may make it difficult for shareholders to resell common stock when they
want or at prices they find
attractive.
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For a
detailed discussion of these and other cautionary statements, please refer to
the Company's filings with the Securities and Exchange Commission, particularly
Item 1A, "Risk Factors," of the Company's Annual Report on Form 10-K for the
fiscal year ended September 30, 2009.
Note: News
releases and other information about Key Technology, Inc. can be
accessed
at www.key.net.
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Key
Technology, Inc. and Subsidiaries
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Statement
of Selected Operating Information
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||||||||||||||||
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(Unaudited,
in thousands, except per share data)
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||||||||||||||||
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Three
Months
Ended
March 31,
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Six
Months
Ended
March 31,
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2010
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2009
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2010
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2009
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Net
sales
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$ | 30,728 | $ | 23,250 | $ | 53,171 | $ | 50,625 | ||||||||
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Cost
of sales
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19,926 | 15,118 | 34,504 | 31,177 | ||||||||||||
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Gross
profit
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10,802 | 8,132 | 18,667 | 19,448 | ||||||||||||
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Operating
expenses:
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||||||||||||||||
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Sales
and marketing
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4,655 | 4,559 | 8,602 | 9,178 | ||||||||||||
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Research
and development
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1,811 | 2,053 | 3,311 | 4,315 | ||||||||||||
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General
and administrative
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2,179 | 2,909 | 4,382 | 6,220 | ||||||||||||
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Amortization
of intangibles
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317 | 317 | 635 | 635 | ||||||||||||
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Total
operating expenses
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8,962 | 9,838 | 16,930 | 20,348 | ||||||||||||
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Loss
on disposition of assets
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(2 | ) | (343 | ) | - | (334 | ) | |||||||||
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Earnings
(loss) from operations
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1,838 | (2,049 | ) | 1,737 | (1,234 | ) | ||||||||||
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Other
income (expense)
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154 | (69 | ) | 174 | (281 | ) | ||||||||||
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Earnings
(loss) before income taxes
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1,992 | (2,118 | ) | 1,911 | (1,515 | ) | ||||||||||
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Income
tax expense (benefit)
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598 | (649 | ) | 573 | (614 | ) | ||||||||||
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Net
earnings (loss)
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$ | 1,394 | $ | (1,469 | ) | $ | 1,338 | $ | (901 | ) | ||||||
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Net
earnings (loss) per share
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||||||||||||||||
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-
basic
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$ | 0.27 | $ | (0.29 | ) | $ | 0.25 | $ | (0.17 | ) | ||||||
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-
diluted
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$ | 0.26 | $ | (0.29 | ) | $ | 0.25 | $ | (0.17 | ) | ||||||
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Shares
used in per share calculations - basic
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5,258 | 5,016 | 5,253 | 5,234 | ||||||||||||
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Shares
used in per share calculation - diluted
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5,274 | 5,016 | 5,269 | 5,234 | ||||||||||||
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Selected
Balance Sheet Information
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||||||||
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(Unaudited,
in thousands)
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March
31,
2010
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September
30,
2009
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Cash
and cash equivalents
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$ | 20,073 | $ | 18,142 | ||||
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Trade
accounts receivable, net
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13,137 | 12,332 | ||||||
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Inventories
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24,727 | 22,433 | ||||||
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Total
current assets
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64,621 | 59,550 | ||||||
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Property,
plant and equipment, net
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15,968 | 16,175 | ||||||
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Goodwill
and other intangibles, net
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2,885 | 3,520 | ||||||
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Investment
in Proditec
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1,178 | 1,272 | ||||||
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Total
assets
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85,555 | 80,715 | ||||||
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Total
current liabilities, including current portion of long-term
debt
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25,467 | 22,517 | ||||||
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Long
term debt
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5,710 | 5,876 | ||||||
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Shareholders'
equity
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$ | 53,442 | $ | 51,457 | ||||
###
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CONTACT:
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Key
Technology, Inc., Walla Walla, Washington
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David Camp,
Chief Executive Officer –
509-529-2161
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