Key Technology Announces Fiscal 2011 Fourth Quarter and Year-end Results
NOVEMBER 10, 2011 - Key Technology, Inc. (Nasdaq: KTEC) announced today sales and operating results for the fourth quarter and year ended September 30, 2011.
Net sales for fiscal 2011 were $116.3 million, compared to the $115.8 million reported for fiscal 2010. The Company reported net earnings for fiscal 2011 of $1.5 million, or $0.27 per diluted share, compared to $3.6 million, or $0.69 per diluted share, for fiscal 2010.
Key Technology also announced results for its fiscal 2011 fourth quarter. Net sales for the three-month period ended September 30, 2011 were $26.5 million, compared to the $31.0 million reported for the same quarter last year. The Company reported a net loss for the fourth quarter of $1.1 million, or $0.21 per diluted share, compared with net earnings of $1.0 million, or $0.19 per diluted share, in the same period a year ago.
David Camp, President and Chief Executive Officer commented, "As previously announced, both the fourth quarter and fiscal year results included a $1.1 million pre-tax charge related to the restructuring of our global operations."
For the 2011 fiscal year, gross profit was $37.8 million, compared to $40.2 million for fiscal 2010, or 32.5% and 34.7%, respectively, of net sales. Gross profit for the fourth quarter of fiscal 2011 was $8.1 million compared to $11.0 million in the corresponding period last year, or 30.7% compared to 35.6%, respectively, of net sales.
Camp continued, "The margin decrease in fiscal 2011, compared to fiscal 2010, resulted primarily from higher than expected customer support costs, continued competitive pricing pressures, and certain charges related to the restructuring of our operations. The margin decrease in the fourth quarter of fiscal 2011, compared to the fourth quarter of fiscal 2010, was also the result of these factors and, additionally, lower production volumes related to the lower net sales in the fourth quarter of fiscal 2011."
Operating expenses for the year ended September 30, 2011 were $35.3 million, or 30.4% of net sales, compared to $34.9 million, or 30.1% of net sales, for fiscal 2010. Operating expenses for the quarter ended September 30, 2011 were $9.7 million, or 36.8% of net sales, compared to $9.4 million, or 30.3% of net sales, in the same quarter last year.
Camp also commented, "We held our operating expenses consistent with the prior fiscal year, and at the same time expect to realize further benefits from leveraging our existing technical skills with the new expertise we have added to the Company in the last six months."
Orders received for the fiscal year ended September 30, 2011 were $116.8 million, compared to $121.1 million in fiscal 2010. New orders received during the fiscal 2011 fourth quarter were $33.9 million, compared to $36.2 million in the same period last year. At the close of the September 2011 quarter, the Company's backlog was $36.2 million, compared to $35.1 million at the close of the corresponding period one year ago. A significant portion of the backlog at the end of fiscal 2011 is scheduled to ship after the first quarter of fiscal 2012.
Camp further commented, "The net sales for the first quarter of fiscal 2012 are expected to be similar to the revenues recorded in the fourth quarter of fiscal 2011 and, consistent with historical patterns, net sales are expected to improve during the remainder of fiscal 2012. Also, we expect gross margins in the first quarter of 2012 will be challenged due to lower production volumes and continuing competitive pricing pressures. Gross margins later in fiscal 2012 are expected to improve as the production volumes increase due to the backlog and order volume."
Camp concluded, "We are encouraged by the year-end backlog and our order funnel is strong as we enter 2012. We also expect to realize a positive impact this year from our new product introductions in 2011 and additional new product releases planned for 2012."
Conference Call
The Company's conference call related to the 2011 fiscal fourth quarter and year-end results can be heard live on the Internet at 2:00 p.m. Pacific Time on Thursday, November 10, 2011. To access the audio webcast, go to 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.
