Key Technology Announces Fiscal 2011 Second Quarter Results
QUARTERLY LOSS OF $0.01 PER SHARE
STRONG ORDERS AND BACKLOG
APRIL 28, 2011 -- Key Technology, Inc. (Nasdaq: KTEC) announced today sales and operating results for the second quarter of fiscal 2011 ended March 31, 2011.
Net sales for the three-month period ended March 31, 2011 totaled $27.9 million, compared to $30.7 million recorded in the corresponding quarter last year. The Company reported a net loss for the quarter of $71,000, or $0.01 per diluted share, compared to net earnings of $1.4 million, or $0.26 per diluted share, in the same period a year ago.
Net sales for the six-months ended March 31, 2011 were $56.1 million, compared with $53.2 million for the comparable period in fiscal 2010. The Company reported net earnings for the fiscal 2011 six-month period ended March 31, 2011 of $533,000, or $0.10 per diluted share, compared to $1.3 million, or $0.25 per diluted share, for the corresponding six-month period in fiscal 2010.
David Camp, President and Chief Executive Officer, stated, "Although our second quarter revenues were consistent with our expectations, our gross profit was adversely affected by higher than expected costs associated with specific large projects and complex customer applications. The Company continues to address these issues by strengthening project management and product validation processes, in addition to implementing specific technical product enhancements. The Company believes these actions will be successful in reducing the effect of these cost issues on future results."
Key's backlog at the end of the second quarter of fiscal 2011 was $38.2 million, compared to $31.6 million one year ago. New orders received during the second quarter were $34.3 million, compared to $26.9 million in the corresponding period last year. New orders for the six months ended March 31, 2011 were $59.2 million, compared to $55.2 million for the corresponding period in fiscal 2010.
Camp continued, "Quarterly orders increased 28% and year-to-date orders increased 7% over the same periods a year ago. Our ending backlog is the largest reported backlog since our record-setting levels reported in fiscal 2008. We believe our order and backlog trends reflect positively on the strength of our product portfolio, including our latest product releases, such as Veo(TM) and Horizon(TM)."
The gross profit for the second quarter of fiscal 2011 was $8.1 million, compared to $10.8 million in the corresponding period last year. As a percentage of sales, gross profit was 29.2% and 35.2% in the second quarters of fiscal 2011 and 2010, respectively. For the six-month period ended March 31, 2011, gross profit was $17.5 million, compared to $18.7 million for the same six-month period of fiscal 2010, or 31.1% and 35.1% of sales, respectively.
Operating expenses for the quarter ended March 31, 2011 were $8.1 million, or 29.0% of sales, compared to $9.0 million, or 29.2% of sales, in the same quarter last year. Operating expenses for the six-months ended March 31, 2011 were $16.5 million, or 29.5% of sales, compared to $16.9 million, or 31.8% of sales, for the corresponding period of fiscal 2010.
Camp further commented, "We continue to control operating expenses as a percentage of net sales. We expect a modest increase in these expenses in the second half of the fiscal year as we strategically add specific project and engineering talent to our organization. In addition, sales expenses will increase related to higher expected sales volumes."
As of March 31, 2011, the Company's financial condition remained strong with over $41.7 million in working capital, including $31.5 million in cash.
Camp concluded, "Net sales for the first half of fiscal 2011 increased 5% over the comparable period in fiscal 2010. We expect to exceed that percentage increase in the second half of fiscal 2011. Taking into account our increasing order rate, current backlog and financial position, we believe we are well-positioned for the second half of fiscal 2011."
Conference Call
The Company's conference call discussing the fiscal 2011 second quarter results can be heard live via the Internet at 2:00 p.m. Pacific Time on Thursday, April 28, 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 allows 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.
Contact:
David Camp
President and Chief Executive Officer
Key Technology, Inc.
509-529-2161
