Key Technology Announces Fiscal 2011 Third Quarter Results
Strong Quarterly Sales and Earnings
July 28 2011 - Key Technology, Inc. (Nasdaq: KTEC) announced today sales and operating results for the third quarter of fiscal 2011 ended June 30, 2011.
Net sales for the three-month period ended June 30, 2011 totaled $33.8 million, compared to $31.6 million recorded in the corresponding quarter last year. Net earnings for the third quarter of fiscal 2011 were $2.0 million, or $0.38 per diluted share, compared to net earnings of $1.3 million, or $0.25 per diluted share, in the same period a year ago.
Net sales for the nine months ended June 30, 2011 were $89.9 million, compared with $84.8 million for the comparable period in fiscal 2010. The Company reported net earnings for the fiscal 2011 nine-month period ended June 30, 2011 of $2.6 million, or $0.48 per diluted share, compared to $2.7 million, or $0.50 per diluted share, for the same nine-month period in fiscal 2010.
David Camp, President and Chief Executive Officer, stated, "We are generally pleased with the financial results for the third quarter, which included our first sales of Veo(TM), our new compact sorter targeted toward new market applications. Strong sales and operating margins both contributed to our quarterly earnings."
Gross profit for the third quarter of fiscal 2011 was $12.2 million, compared to $10.5 million in the corresponding period last year. As a percentage of net sales, gross profit in the third quarter of fiscal 2011 was 36.1%, compared to 33.0% in the same quarter of fiscal 2010. For the 2011 nine-month period ended June 30, 2011, gross profit was $29.7 million, compared to $29.1 million for the same period of fiscal 2010, or 33.0% and 34.3% as a percentage of net sales, respectively.
Camp commented, "The increase in the third-quarter gross margin percentage related to our focus on the project issues encountered in the previous quarter and a favorable product mix."
Operating expenses for the quarter ended June 30, 2011 were $9.0 million, or 26.7% of net sales, compared to $8.6 million, or 27.1% of net sales, in the same quarter last year. Operating expenses for the nine months ended June 30, 2011 were $25.6 million, or 28.5% of net sales, compared to $25.5 million, or 30.1% of net sales, for the corresponding period of fiscal 2010.
Camp further commented, "Our operating expenses have remained relatively consistent compared to the prior year periods. The slight increase in total operating expenses is primarily due to our continued investment in sales and marketing, and research and development, offset by a reduction in amortization costs."
New orders received during the third quarter of fiscal 2011 were $23.8 million, compared to $29.7 million in the same period last year. For the nine-month period of fiscal 2011, new orders received were $82.9 million, compared to $84.9 million for the same period in fiscal 2010. The Company's backlog at the end of the third quarter of fiscal 2011 was $28.3 million, compared to $29.9 million one year ago.
Camp concluded, "We are disappointed with our order volume in the third quarter. Quarterly orders have remained volatile due to continuing customer concerns regarding global and domestic economic conditions. We anticipate an increase in orders in the fourth quarter compared to the quarter just ended, with the expected finalization of some sizeable opportunities, and continued penetration of new product releases, including Veo and our horizontal motion shaker, Horizon(TM)."
Conference Call
The Company's conference call related to the fiscal 2011 third quarter results can be heard live via the Internet at 2:00 p.m. Pacific Time on Thursday, July 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
