WALLA WALLA, Wash., Aug. 6, 2009 (GLOBE NEWSWIRE) -- Key Technology, Inc. (Nasdaq: KTEC) announced today sales and operating results for the third quarter of fiscal 2009 ended June 30, 2009.
Net sales for the three-month period ended June 30, 2009 totaled $26.2 million, compared to $35.8 million recorded in the corresponding quarter last year. Net earnings for the third quarter of fiscal 2009 were $455,000, or $0.09 per diluted share, compared to net earnings of $3.0 million, or $0.53 per diluted share, in the same period a year ago.
Net sales for the nine months ended June 30, 2009 were $76.8 million, compared with $93.9 million for the comparable period in fiscal 2008. The Company reported a net loss for the fiscal 2009 nine-month period ended June 30, 2009 of $446,000, or $0.09 per diluted share, compared to net earnings of $5.2 million, or $0.95 per diluted share, for the same nine-month period in fiscal 2008.
David Camp, President and Chief Executive Officer, stated, "We continue to have significant numbers of trials and requests for quotes; however, the time between inquiries, closed orders and shipments is longer than we have previously experienced. We believe that Key continues to be affected by the continuing uncertainty regarding the global economy. Until industry demand returns to previous levels, we expect continued pressure on sales levels and margins in our current competitive environment."
Gross profit for the third quarter of fiscal 2009 was $9.6 million, compared to $15.0 million in the corresponding period last year. As a percentage of net sales, gross profit in the third quarter of fiscal 2009 was 36.6%, compared to 42.0% in the same quarter of fiscal 2008. For the 2009 nine-month period ended June 30, 2009, gross profit was $29.0 million, compared to $37.8 million for the same period of fiscal 2008, or 37.8% and 40.3% as a percentage of net sales, respectively.
Camp commented, "In addition to lower sales volume, there continues to be pricing pressures on Key's products and solutions that exceed the benefit from our cost control efforts. We are continuing our focus on lowering costs and improving quality and customer services."
Operating expenses for the quarter ended June 30, 2009 were $9.1 million, or 34.8% of net sales, compared to $10.9 million, or 30.5% of net sales, in the same quarter last year. Operating expenses for the nine months ended June 30, 2009 were $29.5 million, or 38.3% of net sales, compared to $31.2 million, or 33.2% of net sales, for the corresponding period of fiscal 2008.
Camp further commented, "Our quarterly operational costs have now come down by $1.4 million since the first quarter of fiscal 2009, reflecting the actions that we took in March 2009. We are committed to continued spending constraints; however, we do not expect significant further decreases in our operating costs in the next fiscal quarter."
New orders received during the third quarter of fiscal 2009 were $20.7 million, compared to $30.7 million in the same period last year. For the nine-month period, new orders received were $69.5 million, compared to $105.1 million for the same period in fiscal 2008. The Company's backlog at the end of the third quarter of fiscal 2009 was $26.2 million, compared to $42.2 million one year ago.
Camp concluded, "During this fiscal year, we have brought sixteen product offerings to market that include new products, application solutions, and new value-added features for our current products. Based on the positive response from our customers, we anticipate these products will generate increased business for Key in the future. We cannot be certain, however, when order activity from our customer base will break out of the current climate. Given our current backlog and the continued conservatism of our customers' capital expenditures budgets, we do not expect the Company's results in the fourth quarter of fiscal 2009 to reach the results obtained in our fiscal 2009 third quarter."
Conference Call
The Company's conference call discussion for the third quarter results can be heard live on the Internet at 2:00 p.m. Pacific Time on Thursday, August 6. To access the call, go to http://www.key.net/investors/investor-events/default.html 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:
* current worldwide economic conditions may adversely affect the
Company's business and results of operations, and the business
of the Company's customers;
* adverse economic conditions, particularly in the food processing
industry, either globally or regionally, may adversely affect
the Company's revenues;
* the loss of any of the Company's significant customers could
reduce the Company's revenues and profitability;
* the Company is subject to pricing pressure from its larger
customers which may reduce the Company's profitability;
* the failure of any of the Company's independent sales
representatives to perform as expected would harm the Company's
net sales;
* the Company may make acquisitions that could disrupt the
Company's operations and harm the Company's operating results;
* issues arising during the implementation of the Company's
enterprise resource planning ("ERP") system could affect the
Company's operating results and ability to manage the Company's
business effectively;
* if the Company's ERP system is not implemented properly, it could
cause errors in the Company's financial reporting;
* 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;
* competition and advances in technology may adversely affect sales,
prices and the marketability of the Company's products;
* failure of the Company's new products to compete successfully in
either existing or new markets;
* the Company's inability to retain and recruit experienced
personnel may adversely affect the Company's business and
prospects for growth;
* the loss of members of the Company's management team could
substantially disrupt the Company's business operations;
* 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;
* 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;
* the Company's dependence on certain suppliers may leave the
Company temporarily without adequate access to raw materials or
products;
* the limited availability and possible cost fluctuations of
materials used in the Company's products could adversely affect
the Company's gross profits; and
* 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.
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, 2008.
Note: News releases and other information about Key Technology, Inc. can be accessed at www.key.net.
Key Technology, Inc. and Subsidiaries
Statement of Selected Operating Information
(Unaudited, in thousands, except per share data)
Three Months Nine Months
Ended June 30, Ended June 30,
-------------------- --------------------
2009 2008 2009 2008
-------------------- --------------------
Net sales $ 26,209 $ 35,831 $ 76,834 $ 93,884
Cost of sales 16,609 20,795 47,787 56,083
--------- --------- --------- ---------
Gross profit 9,600 15,036 29,047 37,801
Operating expenses:
Sales and marketing 4,152 5,552 13,330 15,726
Research and development 1,868 1,984 6,183 5,958
General and
administrative 2,772 3,083 8,992 8,532
Amortization of
intangibles 317 327 952 981
--------- --------- --------- ---------
Total operating expenses 9,109 10,946 29,457 31,197
--------- --------- --------- ---------
Gain (loss) on sale of
assets 19 13 (315) 44
--------- --------- --------- ---------
Earnings (loss) from
operations 510 4,103 (725) 6,648
Other income (expense) (96) 252 (377) 1,066
--------- --------- --------- ---------
Earnings (loss) before
income taxes 414 4,355 (1,102) 7,714
Income tax expense
(benefit) (41) 1,392 (656) 2,468
--------- --------- --------- ---------
Net earnings (loss) $ 455 $ 2,963 $ (446) $ 5,246
========= ========= ========= =========
Net earnings (loss) per
share
- basic $ 0.09 $ 0.54 $ (0.09) $ 0.97
========= ========= ========= =========
- diluted $ 0.09 $ 0.53 $ (0.09) $ 0.95
========= ========= ========= =========
Shares used in per share
calculations - basic 4,845 5,461 4,994 5,417
Shares used in per share
calculation - diluted 4,887 5,574 4,994 5,533
Key Technology, Inc. and Subsidiaries
Selected Balance Sheet Information
(Unaudited, in thousands)
June 30, September 30,
2009 2008
------------- -------------
Cash and cash equivalents $ 11,021 $ 36,322
Trade accounts receivable, net 11,499 13,577
Inventories 25,417 21,915
Receivable from sale of property 1,494 --
Total current assets 54,674 76,027
Property, plant and equipment, net 16,091 8,705
Goodwill and other intangibles, net 3,837 4,790
Investment in Proditec 1,491 --
Total assets 76,584 89,625
Total current liabilities, including
current portion of debt 19,284 28,496
Long term debt 5,956 --
Shareholders' equity $ 51,050 $ 60,368