Key Technology Beats on Earnings


Key Technology, Inc.’s (KTEC) fourth-quarter 2013 earnings decreased 4.5% year over year to 21 cents per share from 22 cents in the year-ago quarter. The results however, surpassed the Zacks Consensus Estimate of 10 cents.

Total revenue climbed 54% year over year to $42 million, beating the Zacks Consensus Estimate of $37 million.

Cost and Margins

Cost of sales increased 14% year over year to $90.7 million. Gross profit went up 51% to $13.4 million from $8.9 million in the year ago quarter. Gross margin contracted 60 basis points (bps) year over year to 32%.

Total operating expenses increased to $11.5 million from $7.4 million in the year-ago quarter. Key Technology reported an income from operations of $2 million, up 32% from the year-ago quarter’s income of $1.5 million.

Key Technology ended the fourth quarter with a backlog of $25.2 million compared with $30.8 million at the end of the prior-year quarter, due to narrowing of large customer orders. During the quarter, the company was awarded new orders worth $25.2 million, down from $33.7 million in the prior-year quarter.

Fiscal 2013 Performance

Key Technology posted earnings of 69 cents per share for fiscal 2013, surging around nine-fold year over year from the year ago quarter’s earnings of 8 cents. This was driven by introduction of the first integrated Key/Visys sorting solution, the Visys acquisition and EVK/Insort licensing agreements. Earnings were ahead of the Zacks Consensus Estimate of 58 cents.

Revenues for the full-year improved 19% year over year to roughly $136.8 million from $115.2 million, the highest in the history of the company. It also surpassed the Zacks Consensus Estimate of $132 million.

Financial Updates

Cash and cash equivalents were $17.6 million as of Sep 30, 2013 versus $23.7 million as of Sep 30, 2012. Long-term debt of the company rose to $5.6 million as of Sep 30, 2013 from $4.8 million as of Sep 30, 2012.

The Visys acquisition has favorably impacted Key Technology. It helped attract new customers for its enhanced products and solutions and improved its technology and applications expertise. In addition, the potential benefits of the recently initiated partnership with EVK and Insort, leveraging the Chemical Imaging Technology (CIT), are generating a high level of interest from the customers. Furthermore, this partnership is expected to realize value in 2014.

The company will offer new products, provide leading solutions and services to support opportunities in core markets and pursue new market adjacencies in 2014. However, lower fourth-quarter backlog and anticipated shipment schedule, will impact results of operations. This will be significantly lower in the first quarter of fiscal 2014 compared with the first quarter of fiscal 2013.

Walla Walla, Wash.-based Key Technology, Inc. designs, manufactures, sells and services process automation systems in the United States and other countries. Key Technology currently carries a Zacks Rank #3 (Hold).

Among Key Technology’s peers Hyster-Yale Materials Handling, Inc. (HY) reported a 5.4% decline in its third-quarter 2013 earnings to $1.40 per share. The year-over-year decrease was led by higher income tax expense. The results also missed the Zacks Consensus Estimate of $1.48.

Adjusted earnings of Columbus McKinnon Corporation (CMCO) fell 14% year over year to 36 cents per share in the second quarter of fiscal 2014 (ended Sep 30, 2013). The results were ahead of the Zacks Consensus Estimate of 31 cents.

Another competitor, Gorman-Rupp Co. (GRC) reported third-quarter 2013 adjusted earnings of 40 cents per share, up 25% year over year. Earnings surpassed the Zacks Consensus Estimate of 38 cents.

Read the Full Research Report on CMCO
Read the Full Research Report on KTEC
Read the Full Research Report on HY
Read the Full Research Report on GRC

Zacks Investment Research


View Comments (0)

Recommended for You

  • Tycoon buys 30 Rolls-Royces for Macau hotel

    A Hong Kong tycoon has placed the biggest ever order for Rolls-Royce cars, agreeing to buy 30 Phantoms to chauffeur guests at a luxury resort he's building in the global gambling capital of Macau. Stephen Hung's $20 million purchase surpasses the 14 Phantoms bought by Hong Kong's Peninsula Hotel in…

    Associated Press
  • Accomplish your career goals

    At Capella University, you can learn the skills you need to succeed. Why wait another day? Get started today.

    AdChoicesCapella UniversitySponsored
  • Before You Buy Alibaba, Check Out 4 Top China Stocks

    Before You Buy Alibaba, Check Out 4 Top China Stocks While investors gear up for Alibaba Group 's (BABA) hotly anticipated initial public offering, don't forget about other Chinese stocks that are worth keeping an eye on. Today's Young Guns Screen of

    Investor's Business Daily
  • Tycoon's arrest sends shock wave through Russia

    Tycoon's arrest sends shock wave through Russia MOSCOW (AP) — The arrest of a Russian telecoms and oil tycoon has sent shock waves through the country's business community, with some fearing a return to the dark days of a decade ago, when the Kremlin asserted its power by imprisoning the country's…

    Associated Press
  • Costco Stores in Canada to Stop Taking American Express

    “The credit card relationship between American Express and Costco Wholesale Canada will not be renewed when it expires” on Dec. 31, the company said today in an e-mail to Canadian customers. The message was attributed to Lorelle Gilpin, vice president of marketing and membership for Costco…

  • "The Retiree Next Door": How successful retirees stretch their savings

    "The Retiree Next Door": How successful retirees stretch their savingsBy the time she hit her late 40s, Toni Eugenia wasn’t sure she would ever be able to retire. Eugenia, 56, a pharmacy technician who lived in Houston, was nearly $200,000 in debt and

    Yahoo Finance
  • As Fed takes baby steps, Cramer's trick for profit

    In turn, Cramer says making money in the market, involves looking at the environment through the lens of the Fed. "The trick is to remember that they speak for the common person," Cramer said. "The Fed wants the common person to make money." With that backdrop always in mind, Cramer says it becomes…

  • CNBC Anchor Calls Out Fed-Hater Bill Fleckenstein In Startling Shouting Match

    CNBC Bill Fleckenstein of Fleckenstein Capital appeared on CNBC's Futures Now program on Tuesday. Futures Now host Jackie DeAngelis came out swinging, asking Fleckenstein right at the top if he was willing to admit that he had misunderstood monetary policy. Sounding taken aback, Fleckenstein…

    Business Insider
  • 1 Tip To Lose Belly Fat

    It's Hollywood's Hottest Diet And Gets Rid Of Stubborn Fat Areas Like Nothing Else.

  • Beanie Babies creator's sentence debated in court

    Beanie Babies creator's sentence debated in court CHICAGO (AP) — Federal prosecutors seeking to put the billionaire creator of Beanie Babies in prison for hiding millions in Swiss bank accounts told appellate court judges Wednesday that the toymaker's sentence of probation threatens to erode the…

    Associated Press
  • Play

    Citi, Bank of America Offer Discounted Mortgages

    Citigroup and Bank of America will offer mortgages at discounted interest rates to help borrowers with low incomes or subprime credit. AnnaMaria Andriotis joins MoneyBeat. Photo: Getty.

    WSJ Live
  • Apple to unveil new iPads, operating system on Oct. 21 : report

    The company plans to unveil the sixth generation of its iPad and the third edition of the iPad mini, as well as its operating system OS X Yosemite, which has undergone a complete visual overhaul, the Internet news website said. Trudy Muller, a spokeswoman for Apple, declined to comment. The iPad is…

  • Gilead Stock Is Falling On These Drug Setbacks

    Gilead Stock Is Falling On These Drug Setbacks Gilead Sciences (GILD) shares are backsliding Wednesday on news that the patient drop-out rate for hepatitis C drug Sovaldi is quadruple that of clinical trials. In addition, the biotech's Phase 2 study results

    Investor's Business Daily
  • Margaritaville casino owners seek bankruptcy

    The owner of Biloxi's Margaritaville casino has filed for Chapter 11 bankruptcy protection Tuesday, only hours before a hearing where the landlord aimed to seize the property. The filing by MVB Holding LLC in U.S. Don Dornan, a lawyer for landlord Clay Point LLC, said the company had planned to ask…

    Associated Press
  • Don't care about Alibaba? Here's why it may matter

    When the Alibaba Group Holding prices its initial public offering Thursday, small businesses in particular will be watching. Founder Jack Ma -the former English-teacher-turned-dot-com billionaire-has touted his e-commerce platform as a way for smaller merchants to expand their international…

  • Norwich Information Security MS

    Online, accredited, top ranked. NSA Center of Academic Excellence. Recognized by the Department of Homeland Security. Download your free brochure!

    AdChoicesNorwich UniversitySponsored
  • Play

    Tues., Sept. 16: Watch Humana Stock

    Humana, Global X Social Media Index ETF and Majesco Entertainment are among stocks to watch. WSJ's Chris Dieterich discusses the details with Michael Casey. Photo: Humana

    WSJ Live
  • Here's What Mark Cuban Wishes He Knew About Money In His 20s

    Cuban is the owner of the Dallas Mavericks basketball team. Billionaire investor and entrepreneur Mark Cuban is generous with his advice. When we asked him what he wishes he'd known about money in his 20s, he said:

    Business Insider
  • SHOE COMPANY: Our CEO Just Disappeared And Most Of The Money Is Gone

    "and like that: he's gone." This is an actual headline from a company press release: "CEO and COO disappeared, most of the company's cash missing." (Via FastFT) In a statement, German-based shoe company Ultrasonic said its CFO,  Chi Kwong Clifford Chan, has been unable to reach the company's CEO,…

    Business Insider
  • Top Analyst Upgrades and Downgrades: AEP, BHP, GE, Incyte, 3M, Tyco, Under Armour and More

    Top Analyst Upgrades and Downgrades: AEP, BHP, GE, Incyte, 3M, Tyco, Under Armour and More Stocks were firm on Wednesday morning ahead of the FOMC meeting outcome. Tuesday’s rally may have sparked higher interest again, and investors are looking for bargains

    24/7 Wall St.
  • Don't buy Alibaba stock: 'Dean of Valuation'

    Investors should steer clear of Alibaba , valuation expert Aswath Damodaran said Wednesday. On CNBC's " Fast Money ," Damodaran, a professor of finance at New York University's Stern School of Business, noted that he was looking at Alibaba stock from the perspective of a long-term investor, not a…

  • Boeing may have outfoxed Musk, but it could have bigger problems

    Elon Musk is arguably one of the greatest entrepreneurial minds of the 21st Century, but he was outsized an old school aerospace giant. Boeing won the bulk of NASA’s contract for a space taxi.  One of the other companies vying for the deal is SpaceX, the company headed by Tesla’s Musk, will get a…

    Talking Numbers
  • Wondering How You Could Save on Home Insurance?

    Get a quote from Farmers Insurance and discover how you could save. Speak with an agent to get the knowledge you need to make an informed decision.

    AdChoicesFarmers InsuranceSponsored
  • Billionaire Investor Says Chinese People Work Harder And Western Companies Could Face Deep Trouble After Alibaba IPO

    Michael Moritz, the chairman of VC firm Sequoia Capital, is a huge fan of Chinese internet companies and reiterated his enthusiasm for the Chinese market in an interview with The Wall Street Journal Wednesday. The billionaire investor described the Alibaba IPO as a “major landmark event” that is as…

    Business Insider