Key Technology Announces Cost Reduction Initiative to Drive a Profitable and Sustainable Business Model
WALLA WALLA, Wash. –Â Key Technology, Inc. (NASDAQ: KTEC), a worldwide leader and full-solutions provider in the design and manufacture of process automation systems, announced today that it has implemented a cost reduction initiative during the second quarter of fiscal 2015 that includes a strategic reduction of approximately 4% of its global workforce. Company earnings for the second quarter of fiscal 2015 will be adversely affected by an estimated pre-tax charge of approximately $500,000 related to the workforce reduction. The Company expects this cost reduction to be fully implemented by the end of the third quarter of fiscal 2015, and expects to realize the payback of this charge within the same period.
Jack Ehren, President and Chief Executive Officer commented, “We are committed to putting in place a profitable and sustainable business model that generates returns for our shareholders. We believe in our overall corporate vision and strategy, and continue to refine and advance all aspects of our business. This planned cost reduction is one of many initiatives that the Company is implementing to drive profitable growth. Our entire team remains focused on our primary initiative to develop new, innovative solutions that we plan to commercialize in late fiscal 2015. Also, as part of our ongoing initiative to increase our European market penetration, we will soon formally announce that we have hired a new senior director of sales for the EMEIA region, who will add extensive industry and market experience to our team. We are confident in our ability to continue building a strong, successful, and growing business.”
About Key Technology
Key Technology (NASDAQ: KTEC) is a global leader in the design and manufacture of process automation systems including digital sorters, conveyors, and processing equipment. Applying processing knowledge and application expertise, Key helps customers in the food processing and other industries improve quality, increase yield, and reduce cost. An ISO-9001 certified company, Key manufactures its products at its headquarters in Walla Walla, Washington, USA; and in Beusichem, the Netherlands; Hasselt, Belgium; and Redmond, Oregon, USA. Key offers customer demonstration and testing services at five locations including Walla Walla, Beusichem, and Hasselt as well as Sacramento, California, USA and Melbourne, Australia; and maintains a sales and service office in Santiago de Queretaro, Mexico.
Contact
Jeff Siegal
Vice President and CFO
Key Technology, Inc.
150 Avery Street
Walla Walla, WA 99362
Tel: +1 509-394-3300
Email: jsiegal@key.net
