Key Technology Inc. (KTEC, Financial) filed Quarterly Report for the period ended 2010-06-30.
Key Technology Inc. has a market cap of $65.8 million; its shares were traded at around $12.45 with a P/E ratio of 27.6 and P/S ratio of 0.6. KTEC is in the portfolios of Chuck Royce of Royce& Associates, Jim Simons of Renaissance Technologies LLC.
the first nine months of fiscal 2010 were $8.0 million, or 10%, higher than net sales of $76.8 million in the corresponding period a year ago. Customer orders in the first nine months of fiscal 2010 of $84.9 million were up $15.5 million, or 22%, compared to orders of $69.5 million in the first nine months of fiscal 2009. Orders increased in North America, Europe and Latin America and most significantly in the potato market. Orders also increased across most major product lines except for a reduction in orders for upgrade and Manta® systems. Net earnings for the first nine months of fiscal 2010 were $2.7 million, or $0.50 per diluted share. The net loss for the corresponding nine-month period last year was $446,000, or $0.09 per diluted share. The net loss in the first nine months of fiscal 2009 included pre-tax charges of $890,000 related to a workforce reduction and a $343,000 write-off of previously incurred costs associated with a potential facility expansion. The results for the first nine months of fiscal 2010 and fiscal 2009 also included the effects of certain cost reduction initiatives implemented during fiscal 2009.
Allowances for doubtful accounts. The Company establishes allowances for doubtful accounts for specifically identified, as well as anticipated, doubtful accounts based on credit profiles of customers, current economic trends, contractual terms and conditions, and customers historical payment patterns. Factors that affect collectability of receivables include general economic or political factors in certain countries that affect the ability of customers to meet current obligations. The Company actively manages its credit risk by utilizing an independent credit rating and reporting service, by requiring certain percentages of down payments, and by requiring secured forms of payment for customers with uncertain credit profiles or located in certain countries. Forms of secured payment could include irrevocable letters of credit, bank guarantees, third-party leasing arrangements or EX-IM Bank guarantees, each utilizing Uniform Commercial Code filings, or the like, with governmental entities where possible. The Company believes that the accounting estimate related to allowances for doubtful accounts is a “critical accounting estimate” because it requires management judgment in making assumptions relative to customer or general economic factors that are outside the Company s control. As of June 30, 2010, the balance sheet included allowances for doubtful accounts of $398,000. Amounts charged to bad debt expense for the nine-month periods ended June 30, 2010 and 2009, respectively, were $55,000 and $123,000, respectively. Actual charges to the allowance for doubtful accounts for the nine-month periods ended June 30, 2010 and 2009, respectively, were $110,000 and $39,000, respectively. If the Company experiences actual bad debt expense in excess of estimates, or if estimates are adversely adjusted in future periods, the carrying value of accounts receivable would decrease and charges for bad debts would increase, resulting in decreased net earnings. In addition, in fiscal 2007, the Company established a $750,000 allowance against the full amount of the Company s notes receivable from the fiscal 2007 sale of its interest in the InspX joint venture. During fiscal 2010, the Company collected the full amount. Of the amounts collected, $275,000 was recorded as income upon the reversal of its allowance in the fourth quarter of fiscal 2009, and $150,000 and $325,000, respectively, in the first and second quarters of fiscal 2010.
Total backlog was $29.9 million at the end of the third quarter of fiscal 2010 and was $3.6 million higher than the $26.2 million backlog at the end of the third quarter of the prior fiscal year. Process systems backlog increased by $2.7 million, or 30%, to $12.1 million at the end of the third quarter of fiscal 2010 compared to $9.4 million at the same time a year ago. The backlog increase for process systems was primarily related to vibratory products and other process systems equipment in the Company s major geographic regions. Backlog for automated inspection systems was up $464,000, or 3%, to $16.6 million at June 30, 2010 compared to $16.1 million at June 30, 2009. This backlog increase for automated inspection systems was in all product categories except for decreases in backlog for upgrade and tobacco systems. Backlog by product line at June 30, 2010 was 55% automated inspection systems, 41% process systems, and 4% parts and service, compared to 61% automated inspection systems, 36% process systems, and 3% parts and service on June 30, 2009. A portion of the backlog at the end of the third quarter
Orders increased by $9.0 million, or 44%, to $29.7 million in the third quarter of fiscal 2010 compared to the third quarter new orders of $20.7 million a year ago. Process systems orders increased $3.9 million, or 51%, during the third quarter of fiscal 2010 to $11.5 million compared to $7.6 million in the third quarter of fiscal 2009. Orders for automated inspection systems during the third quarter of fiscal 2010 increased $4.3 million, or 57%, to $11.8 million from $7.5 million in the comparable quarter of fiscal 2009. Orders for parts and service increased $885,000, or 16%, during the third quarter of fiscal 2010 to $6.4 million compared to $5.6 million in the third quarter of fiscal 2009. The increase in orders for process systems, automated inspection systems, and parts and service occurred in the Company s major geographic regions, and primarily in the potato, processed fruit and vegetable, and tobacco markets. Orders also increased across most major product lines except for orders of upgrade systems which remained flat compared to the prior year third quarter.
Orders for the first nine months of fiscal 2010 increased $15.4 million, or 22%, to $84.9 million compared to orders of $69.5 million for the first nine months of fiscal 2009. Orders for process systems increased $5.9 million, or 24%, to $30.2 million compared to $24.3 million in fiscal 2009. Orders for automated inspection systems increased approximately $7.4 million, or 24%, to $37.9 million compared to $30.5 million in fiscal 2009. Orders for parts and service were $16.9 million, up $2.2 million, or 15%, from $14.7 million in the prior year. The increase in orders from the prior year for process systems, automated inspection systems, and parts and service related to increased orders in North America, Europe and Latin America, and most significantly in the potato market. Orders also increased across most major product lines except for a reduction in orders for upgrade and Manta systems.
Read the The complete Report
Key Technology Inc. has a market cap of $65.8 million; its shares were traded at around $12.45 with a P/E ratio of 27.6 and P/S ratio of 0.6. KTEC is in the portfolios of Chuck Royce of Royce& Associates, Jim Simons of Renaissance Technologies LLC.
Highlight of Business Operations:
In the third quarter of fiscal 2010, the Company s order volume, net sales, backlog, and net earnings all increased compared to the corresponding period in the prior fiscal year. Net sales of $31.6 million in the third fiscal quarter of 2010 were $5.4 million, or 21%, higher than net sales of $26.2 million in the corresponding quarter a year ago. International sales were 57% of net sales for the third fiscal quarter of 2010, compared to 48% in the corresponding prior year period. Backlog of $29.9 million at the end of the third fiscal quarter of 2010 represented a $3.7 million, or 14%, increase from the ending backlog of $26.2 million in the corresponding quarter a year ago. Net earnings for the third quarter of fiscal 2010 were $1.3 million, or $0.25 per diluted share. Net earnings for the corresponding period last year were $455,000, or $0.09 per diluted share. Customer orders in the third quarter of fiscal 2010 of $29.7 million were up $9.0 million, or 44%, compared to orders of $20.7 million in the third quarter of fiscal 2009. Orders increased across the Company s major geographic areas and primarily in the potato, processed fruit and vegetable, and tobacco markets. Orders also increased across most product lines except for upgrade systems orders which remained flat compared to the prior year third quarter. During the third quarter of fiscal 2010, the Company continued to focus on strengthening market share and revenues in its established markets and geographies, developing its presence in the pharmaceutical and nutraceutical market, increasing upgrade system sales, and continuing to expand its global market presence.the first nine months of fiscal 2010 were $8.0 million, or 10%, higher than net sales of $76.8 million in the corresponding period a year ago. Customer orders in the first nine months of fiscal 2010 of $84.9 million were up $15.5 million, or 22%, compared to orders of $69.5 million in the first nine months of fiscal 2009. Orders increased in North America, Europe and Latin America and most significantly in the potato market. Orders also increased across most major product lines except for a reduction in orders for upgrade and Manta® systems. Net earnings for the first nine months of fiscal 2010 were $2.7 million, or $0.50 per diluted share. The net loss for the corresponding nine-month period last year was $446,000, or $0.09 per diluted share. The net loss in the first nine months of fiscal 2009 included pre-tax charges of $890,000 related to a workforce reduction and a $343,000 write-off of previously incurred costs associated with a potential facility expansion. The results for the first nine months of fiscal 2010 and fiscal 2009 also included the effects of certain cost reduction initiatives implemented during fiscal 2009.
Allowances for doubtful accounts. The Company establishes allowances for doubtful accounts for specifically identified, as well as anticipated, doubtful accounts based on credit profiles of customers, current economic trends, contractual terms and conditions, and customers historical payment patterns. Factors that affect collectability of receivables include general economic or political factors in certain countries that affect the ability of customers to meet current obligations. The Company actively manages its credit risk by utilizing an independent credit rating and reporting service, by requiring certain percentages of down payments, and by requiring secured forms of payment for customers with uncertain credit profiles or located in certain countries. Forms of secured payment could include irrevocable letters of credit, bank guarantees, third-party leasing arrangements or EX-IM Bank guarantees, each utilizing Uniform Commercial Code filings, or the like, with governmental entities where possible. The Company believes that the accounting estimate related to allowances for doubtful accounts is a “critical accounting estimate” because it requires management judgment in making assumptions relative to customer or general economic factors that are outside the Company s control. As of June 30, 2010, the balance sheet included allowances for doubtful accounts of $398,000. Amounts charged to bad debt expense for the nine-month periods ended June 30, 2010 and 2009, respectively, were $55,000 and $123,000, respectively. Actual charges to the allowance for doubtful accounts for the nine-month periods ended June 30, 2010 and 2009, respectively, were $110,000 and $39,000, respectively. If the Company experiences actual bad debt expense in excess of estimates, or if estimates are adversely adjusted in future periods, the carrying value of accounts receivable would decrease and charges for bad debts would increase, resulting in decreased net earnings. In addition, in fiscal 2007, the Company established a $750,000 allowance against the full amount of the Company s notes receivable from the fiscal 2007 sale of its interest in the InspX joint venture. During fiscal 2010, the Company collected the full amount. Of the amounts collected, $275,000 was recorded as income upon the reversal of its allowance in the fourth quarter of fiscal 2009, and $150,000 and $325,000, respectively, in the first and second quarters of fiscal 2010.
Total backlog was $29.9 million at the end of the third quarter of fiscal 2010 and was $3.6 million higher than the $26.2 million backlog at the end of the third quarter of the prior fiscal year. Process systems backlog increased by $2.7 million, or 30%, to $12.1 million at the end of the third quarter of fiscal 2010 compared to $9.4 million at the same time a year ago. The backlog increase for process systems was primarily related to vibratory products and other process systems equipment in the Company s major geographic regions. Backlog for automated inspection systems was up $464,000, or 3%, to $16.6 million at June 30, 2010 compared to $16.1 million at June 30, 2009. This backlog increase for automated inspection systems was in all product categories except for decreases in backlog for upgrade and tobacco systems. Backlog by product line at June 30, 2010 was 55% automated inspection systems, 41% process systems, and 4% parts and service, compared to 61% automated inspection systems, 36% process systems, and 3% parts and service on June 30, 2009. A portion of the backlog at the end of the third quarter
Orders increased by $9.0 million, or 44%, to $29.7 million in the third quarter of fiscal 2010 compared to the third quarter new orders of $20.7 million a year ago. Process systems orders increased $3.9 million, or 51%, during the third quarter of fiscal 2010 to $11.5 million compared to $7.6 million in the third quarter of fiscal 2009. Orders for automated inspection systems during the third quarter of fiscal 2010 increased $4.3 million, or 57%, to $11.8 million from $7.5 million in the comparable quarter of fiscal 2009. Orders for parts and service increased $885,000, or 16%, during the third quarter of fiscal 2010 to $6.4 million compared to $5.6 million in the third quarter of fiscal 2009. The increase in orders for process systems, automated inspection systems, and parts and service occurred in the Company s major geographic regions, and primarily in the potato, processed fruit and vegetable, and tobacco markets. Orders also increased across most major product lines except for orders of upgrade systems which remained flat compared to the prior year third quarter.
Orders for the first nine months of fiscal 2010 increased $15.4 million, or 22%, to $84.9 million compared to orders of $69.5 million for the first nine months of fiscal 2009. Orders for process systems increased $5.9 million, or 24%, to $30.2 million compared to $24.3 million in fiscal 2009. Orders for automated inspection systems increased approximately $7.4 million, or 24%, to $37.9 million compared to $30.5 million in fiscal 2009. Orders for parts and service were $16.9 million, up $2.2 million, or 15%, from $14.7 million in the prior year. The increase in orders from the prior year for process systems, automated inspection systems, and parts and service related to increased orders in North America, Europe and Latin America, and most significantly in the potato market. Orders also increased across most major product lines except for a reduction in orders for upgrade and Manta systems.
Read the The complete Report
