Key Technology, Inc. (NASDAQ:KTEC) announced today sales and
operating results for fiscal 2017 and the fourth quarter ended
September 30, 2017.
Fiscal 2017 OverviewNet sales for fiscal 2017
were $139.9 million, an increase of $19.9 million, or 17%, compared
to the $120.0 million reported for fiscal 2016. The Company
reported net earnings for fiscal 2017 of $4.0 million, or $0.63 per
diluted share, compared to a net loss of $0.7 million, or $0.11 per
diluted share, for fiscal 2016.
For the 2017 fiscal year, gross profit was $47.2 million,
compared to $36.0 million for fiscal 2016, or 33.7% and 30.0%,
respectively, of net sales.
Operating expenses for the year ended September 30, 2017 were
$40.1 million, or 28.7% of net sales, compared to $36.2 million, or
30.2% of net sales, for fiscal 2016.
Fourth Quarter OverviewNet sales for the three
months ended September 30, 2017 were $40.5 million, an increase of
$10.0 million, or 32.8%, compared to the $30.5 million reported for
the same quarter last year. The Company reported net earnings
for the fourth quarter of $1.2 million, or $0.18 per diluted share,
compared with net earnings of $0.5 million, or $0.08 per diluted
share, in the same period a year ago.
Gross profit for the fourth quarter of fiscal 2017 was $13.1
million, compared to $9.9 million in the corresponding period last
year, or 32.4% compared to 32.6%, respectively, of net sales.
Operating expenses for the quarter ended September 30, 2017 were
$11.0 million, or 27.2% of net sales, compared to $8.8 million, or
29.0% of net sales, in the same quarter last year.
Orders and BacklogOrders received for the
fiscal year ended September 30, 2017 were $142.3 million, compared
to $128.7 million in fiscal 2016. New orders received during
the fourth quarter of fiscal 2017 were $32.1 million, compared to
$36.5 million in the same period last year which included a record
level in the EMEIA region. As of September 30, 2017, the
Company's backlog was $43.9 million, compared to $40.4 million at
September 30, 2016.
Jack Ehren, President and Chief Executive Officer, commented,
"Our record annual net sales and orders in fiscal 2017, and our
solid increase in gross margins and net earnings, demonstrate that
we are continuing to make strong progress toward the execution of
our long-term global strategy. Our new VERYX platform is
steadily becoming a more significant portion of our overall
Automated Inspection Systems orders and net sales. Our record
year-end backlog for fiscal 2017, as well as our strong funnel of
opportunities in all of our core markets globally, positions Key
well entering into fiscal 2018."
Ehren further commented, “An important component of our overall
strategy is to grow our EMEIA and North America businesses, and our
on-going investments in these regions are generating real
returns. EMEIA annual orders have continued to achieve
significant record levels. Annual EMEIA orders, in euros,
have almost doubled over the last three years. North America was
our largest order-contributing region in the fourth quarter and for
fiscal 2017. For the fourth quarter, orders in North America
included a significant order associated with a new plant expansion
by a major global potato processor. A large portion of this
order was for Key’s new VERYX optical sorting platform.
Additional significant orders for this project are anticipated to
be received in the first quarter of fiscal 2018. Also,
subsequent to year-end we received a major order for multiple
plants from a major vegetable processor in North America for our
new VERYX systems."
ConclusionEhren concluded, "Our entire company
is energized by the increasing global momentum we are achieving as
we execute on our vision. We continue to be focused and dedicated
in our transformational journey to drive technology leadership and
to develop strong customer partnerships globally. We are fully
committed to helping our customers achieve their goals and
objectives, which in turn enables Key to generate attractive
returns for our Company and our shareholders."
Conference CallThe Company's conference call
related to the fiscal 2017 year-end and fourth quarter results can
be heard live on the Internet at 2:00 p.m. Pacific Time on
Thursday, November 16, 2017.
To access the audio webcast:Phone - Q&A
participation:Toll-Free: 877-341-5668International:
224-357-2205Conference ID: 98040408
Internet - Audio webcast:
http://edge.media-server.com/m6/p/htgusam4
Replay - Available through Monday, December 11, 2017Audio
replay: http://edge.media-server.com/m6/p/htgusam4
About Key TechnologyKey Technology
(NASDAQ:KTEC) is a global leader in the design and manufacture of
automation systems including digital sorters, conveyors, and other
processing equipment. Applying processing knowledge and application
expertise, Key helps customers in the food processing and other
industries improve quality, increase yield, and reduce
cost. An ISO-9001 certified company, Key
manufactures its products at its headquarters in Walla Walla,
Washington, USA; in Beusichem, the Netherlands; Hasselt, Belgium;
and Redmond, Oregon, USA. Key offers customer demonstration and
testing services at five locations including Walla Walla,
Beusichem, and Hasselt as well as Sacramento, California, USA and
Melbourne, Australia; and maintains a sales and service office in
Santiago de Queretaro, Mexico.
Forward-Looking StatementsCertain statements in
this press release may be forward-looking statements for purposes
of the Private Securities Litigation Reform Act of 1995.
These statements may relate to expected results of operations or
gross margins; expected trends in sales, orders, earnings and other
financial measures; projected expenses, including general and
administrative expenses; national and international economic
conditions; the effect of foreign exchange fluctuations; or other
future occurrences. Actual results could differ materially
from those anticipated in the forward-looking statements as a
result of a variety of economic, competitive, and governmental
risks and uncertainties. These risks and uncertainties
include, among other things: factors that could increase our
cost of operations and reduce gross margins and profitability,
including expanding into new markets, undertaking complex projects
and applications, increasing research and development expenses, and
offering increasingly integrated products; acquisitions that may
harm our operating results; failure of our existing and new
products to compete successfully, which could result in the loss of
market share and a decrease in our sales and profits; significant
investments in unsuccessful research and development efforts;
industry consolidation increasing competition in the food
processing equipment industry; advances in technology by
competitors adversely affecting our sales and profitability; the
failure of our independent sales representatives to perform as
expected, thereby harming our net sales; our dependence on certain
suppliers leaving us temporarily without adequate access to raw
materials or products; and increased or unanticipated costs
associated with product warranties adversely affecting our
profitability. These and other risk factors are discussed in
our filings with the Securities and Exchange Commission, including
in Item 1A, "Risk Factors," of our Annual Report on Form 10-K for
the fiscal year ended September 30, 2016. We undertake
no obligation to update or revise any forward-looking statements in
this press release as a result of subsequent developments, except
as may be required by law.
Contact Information:Jeff
SiegalSenior Vice President and Chief Financial OfficerKey
Technology, Inc.150 Avery StreetWalla Walla, WA 99362 USATel:
509-394-3300Email: jsiegal@key.netURL: www.key.net
News releases and other information about Key
Technology, Inc. can beaccessed at www.key.net.
|
Key Technology, Inc. and
Subsidiaries |
Statement of Selected Operating
Information |
(Unaudited, in thousands, except per share
data) |
|
|
|
|
|
|
|
|
|
YearEnded September 30, |
|
Three MonthsEnded September 30, |
|
2017 |
|
2016 |
|
2017 |
|
2016 |
|
|
|
|
|
|
|
|
Net sales |
$ |
139,914 |
|
|
$ |
120,040 |
|
|
$ |
40,545 |
|
|
$ |
30,520 |
|
Cost of sales |
92,729 |
|
|
83,994 |
|
|
27,407 |
|
|
20,577 |
|
Gross profit |
47,185 |
|
|
36,046 |
|
|
13,138 |
|
|
9,943 |
|
Operating
expenses: |
|
|
|
|
|
|
|
Sales and
marketing |
19,421 |
|
|
16,389 |
|
|
5,315 |
|
|
4,096 |
|
Research
and development |
11,497 |
|
|
10,615 |
|
|
3,205 |
|
|
2,704 |
|
General
and administrative |
8,347 |
|
|
8,070 |
|
|
2,296 |
|
|
1,809 |
|
Amortization of intangibles |
864 |
|
|
1,121 |
|
|
217 |
|
|
234 |
|
Total operating
expenses |
40,129 |
|
|
36,195 |
|
|
11,033 |
|
|
8,843 |
|
Gain (loss) on
disposition of assets |
(3 |
) |
|
(1 |
) |
|
1 |
|
|
(11 |
) |
Income (loss) from
operations |
7,053 |
|
|
(150 |
) |
|
2,106 |
|
|
1,089 |
|
Other income
(expense) |
(884 |
) |
|
(1,004 |
) |
|
(237 |
) |
|
(245 |
) |
Earnings (loss) before
income taxes |
6,169 |
|
|
(1,154 |
) |
|
1,869 |
|
|
844 |
|
Income tax expense
(benefit) |
2,137 |
|
|
(457 |
) |
|
675 |
|
|
329 |
|
Net earnings
(loss) |
$ |
4,032 |
|
|
$ |
(697 |
) |
|
$ |
1,194 |
|
|
$ |
515 |
|
Net earnings (loss) per
share |
|
|
|
|
|
|
|
- basic |
$ |
0.63 |
|
|
$ |
(0.11 |
) |
|
$ |
0.18 |
|
|
$ |
0.08 |
|
- diluted |
$ |
0.63 |
|
|
$ |
(0.11 |
) |
|
$ |
0.18 |
|
|
$ |
0.08 |
|
|
|
|
|
|
|
|
|
Shares used in per
share calculation - basic |
6,447 |
|
|
6,332 |
|
|
6,487 |
|
|
6,403 |
|
Shares used in per
share calculation - diluted |
6,447 |
|
|
6,332 |
|
|
6,487 |
|
|
6,403 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Key Technology, Inc. and
Subsidiaries |
Balance Sheet Information |
(Unaudited, in thousands) |
|
|
|
|
|
|
|
September 30, 2017 |
|
September 30, 2016 |
Cash and cash
equivalents |
|
$ |
9,337 |
|
|
$ |
10,491 |
|
Trade accounts
receivable, net |
|
20,177 |
|
|
14,024 |
|
Inventories |
|
38,588 |
|
|
30,687 |
|
Deferred income
taxes |
|
4,770 |
|
|
3,934 |
|
Income tax
receivable |
|
1,127 |
|
|
59 |
|
Prepaid expenses and
other assets |
|
3,312 |
|
|
3,226 |
|
Total
current assets |
|
77,311 |
|
|
62,421 |
|
Property, plant and
equipment, net |
|
12,911 |
|
|
13,789 |
|
Deferred income
taxes |
|
1,299 |
|
|
3,001 |
|
Intangibles and other
assets, net |
|
4,457 |
|
|
5,149 |
|
Investment in
Proditec |
|
1,127 |
|
|
1,127 |
|
Goodwill |
|
10,616 |
|
|
10,277 |
|
Other Assets |
|
117 |
|
|
220 |
|
Total
assets |
|
$ |
107,838 |
|
|
$ |
95,984 |
|
|
|
|
|
|
Accounts payable |
|
$ |
10,490 |
|
|
$ |
7,381 |
|
Accrued payroll
liabilities and commissions |
|
7,714 |
|
|
4,932 |
|
Customers'
deposits |
|
8,085 |
|
|
9,139 |
|
Accrued customer
support and warranty costs |
|
2,276 |
|
|
2,197 |
|
Income tax payable |
|
1,357 |
|
|
— |
|
Current portion of
long-term debt |
|
4,566 |
|
|
587 |
|
Customer purchase
plans |
|
1,039 |
|
|
1,124 |
|
Other accrued
liabilities |
|
1,923 |
|
|
956 |
|
Total
current liabilities |
|
37,450 |
|
|
26,316 |
|
Long-term debt |
|
— |
|
|
4,565 |
|
Deferred income
taxes |
|
1,514 |
|
|
1,761 |
|
Other long-term
liabilities |
|
222 |
|
|
348 |
|
Shareholders'
equity: |
|
|
|
|
Common stock |
|
34,959 |
|
|
34,237 |
|
Retained earnings |
|
34,580 |
|
|
30,548 |
|
Accumulated other
comprehensive income (loss) |
|
(887 |
) |
|
(1,791 |
) |
Total shareholders'
equity |
|
68,652 |
|
|
62,994 |
|
Total
liabilities and shareholder's equity |
|
$ |
107,838 |
|
|
$ |
95,984 |
|
|
|
|
|
|
|
|
|
|
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