Key Technology Announces Fiscal 2012 Second Quarter Results
APRIL 26, 2012 - Key Technology, Inc. (Nasdaq: KTEC) announced today sales and operating results for the second quarter of fiscal 2012 ended March 31, 2012.
Net sales for the three-month period ended March 31, 2012 totaled $27.2 million, compared to $27.9 million recorded in the corresponding quarter last year. The Company reported a net loss for the quarter of $726,000, or $0.13 per diluted share, compared to a net loss of $71,000, or $0.01 per diluted share, in the same period a year ago.
Net sales for the six-months ended March 31, 2012 were $53.2 million, compared with $56.1 million for the comparable period in fiscal 2011. The Company reported a net loss for the fiscal 2012 six-month period ended March 31, 2012 of $969,000, or $0.18 per diluted share, compared to net earnings of $533,000, or $0.10 per diluted share, for the corresponding six-month period in fiscal 2011.
David Camp, President and Chief Executive Officer, stated, "Net sales and the results of operations were unfavorably affected by the postponement of two shipments due to customer-requested delays. These orders, totaling over $2.5 million, will ship in the third fiscal quarter of 2012. The Company anticipates that net sales in the third quarter of fiscal 2012 will be significantly higher than in the second quarter of fiscal 2012."
Key's backlog at the end of the second quarter of fiscal 2012 was $34.7 million, compared to $38.2 million one year ago. New orders received during the second quarter were $24.9 million, compared to $34.3 million in the corresponding period last year. New orders for the six months ended March 31, 2012 were $51.5 million, compared to $59.2 million for the corresponding period in fiscal 2011.
Camp continued, "Orders and backlog thus far in fiscal 2012 are below the results achieved during the comparable periods in fiscal 2011. The Company believes certain of its markets have been in a slow period for new capital investment. However, we are experiencing substantial quote activity for potential large-scale projects in these markets."
The gross profit for the second quarter of fiscal 2012 was $7.9 million, compared to $8.1 million in the corresponding period last year. As a percentage of sales, gross profit was 29.1% and 29.2% in the second quarters of fiscal 2012 and 2011, respectively. For the six-month period ended March 31, 2012, gross profit was $16.5 million, compared to $17.5 million for the same six-month period of fiscal 2011, or 31.0% and 31.1% of sales, respectively.
Camp further commented, "Gross margins in the second quarter of fiscal 2012 declined from the first quarter of fiscal 2012 due to the comparative product mix. The Company anticipates gross margin improvement for the third quarter of fiscal 2012."
Operating expenses for the quarter ended March 31, 2012 were $8.7 million, or 32.0% of sales, compared to $8.1 million, or 29.0% of sales, in the same quarter last year.
Operating expenses for the six-months ended March 31, 2012 were $17.5 million, or 32.8% of sales, compared to $16.5 million, or 29.5% of sales, for the corresponding period of fiscal 2011. The modest increase in operating expenses compared with the prior year relates to research and development spending.
Camp concluded, "The Company believes its commitment to new product development and strategic initiatives provides a significant driver for future revenue growth, as evidenced by our previously announced multi-million-dollar order in the second quarter of fiscal 2012 for our recently-released VEO(TM) system."
Conference Call
The Company's conference call related to the fiscal 2012 second quarter results can be heard live on the Internet at 2:00 p.m. Pacific Time on Thursday, April 26, 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.
