Key Technology Announces Fiscal 2012 Fourth Quarter and Year-end Results
Key Technology, Inc. (Nasdaq: KTEC) announced today sales and operating results for the fourth quarter and year ended September 30, 2012.
Net sales for the three months ended September 30, 2012 were $27.3 million, compared to the $26.5 million reported for the same quarter last year. The Company reported net earnings for the fourth quarter of $1.2 million, or $0.22 per diluted share, compared with a net loss of $1.1 million, or $0.21 per diluted share, in the same period a year ago.
Net sales for fiscal 2012 were $115.2 million, compared to the $116.3 million reported for fiscal 2011. The Company reported net earnings for fiscal 2012 of $449,000, or $0.08 per diluted share, compared to $1.5 million, or $0.27 per diluted share, for fiscal 2011.
Jack Ehren, President and Chief Executive Officer commented, "Although the Company's annual fiscal 2012 operating results - both top and bottom line - did not meet our objectives, I was very pleased with the focus, accountability and execution of our entire company in the fourth quarter. We effectively controlled our costs and realized the benefit of our third-quarter workforce reductions, noticeably improving our profitability. In addition, we continue to positively position the company to execute on our long-term objectives."
Gross profit for the fourth quarter of fiscal 2012 was $8.9 million compared to $8.1 million in the corresponding period last year, or 32.6% compared to 30.7%, respectively, of net sales. For the 2012 fiscal year, gross profit was $35.8 million, compared to $37.8 million for fiscal 2011, or 31.1% and 32.5%, respectively, of net sales.
Ehren continued, "The margin increase in the fourth quarter of fiscal 2012, compared to the fourth quarter of fiscal 2011, related to the cost reduction initiatives and lower customer support costs."
Operating expenses for the quarter ended September 30, 2012 were $7.4 million, or 27.1% of net sales, compared to $9.7 million, or 36.8% of net sales, in the same quarter last year. Operating expenses for the year ended September 30, 2012 were $34.9 million, or 30.3% of net sales, compared to $35.3 million, or 30.4% of net sales, for fiscal 2011.
Ehren stated, "Our cost control efforts enabled us to realize significantly lower operating expenses in the fourth quarter, compared to the previous quarters in fiscal 2012 as well as the fourth quarter of fiscal 2011."
New orders received during the fiscal 2012 fourth quarter were $33.7 million, compared to $33.9 million in the same period last year. Orders received for the fiscal year ended September 30, 2012 were $109.0 million, compared to $116.8 million in fiscal 2011. At the close of the September 2012 quarter, the Company's backlog was $30.8 million, compared to $36.2 million at the close of the corresponding period one year ago. Several large orders included in the fourth quarter ending backlog are not scheduled to ship until after the first quarter of fiscal 2013, resulting in anticipated first quarter fiscal 2013 net sales and results of operations being significantly lower than in the first quarter of fiscal 2012.
Ehren commented, "We consider the anticipated first quarter results to be primarily a timing issue related to the composition of our current backlog, and we currently expect results for fiscal year 2013 to be more aligned with our overall expectations."
Ehren further commented, "Our strong fourth quarter orders, over half of which were in the potato industry, included several significant french fry processing orders in multiple geographic regions. In addition, we are confident that our successful fourth quarter installation and commissioning of several important orders in multiple market applications will result in future business for Key."
Ehren concluded, "We continue to be encouraged by future opportunities associated with large potential orders. We remain focused on both executing in the short term and implementing a successful long-term strategy for the Company."
Conference Call
The Company's conference call related to the fiscal 2012 fourth quarter year-end results can be heard live on the Internet at 2:00 p.m. Pacific Time on Thursday, November 8, 2012. 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.
Contact:
Jack Ehren
President and Chief Executive Officer
Key Technology, Inc.
150 Avery Street
Walla Walla, WA 99362
509-529-2161
