Key Technology Inc. (KTEC, Financial) filed Quarterly Report for the period ended 2008-12-31.
KEY TECHNOLOGY INC. designs manufactures sells and services process automation systems integrating electro-optical automated inspection and sorting systems specialized conveying systems and product preparation systems. Key Technology Inc. has a market cap of $69.72 million; its shares were traded at around $13.99 with a P/E ratio of 10.78 and P/S ratio of 0.52.
Total backlog was $29.3 million at the end of the first quarter of fiscal 2009 and was $7.5 million lower than the $36.8 million backlog at the end of the first quarter in the prior fiscal year. Backlog for automated inspection systems was up $2.1 million, or 12%, to $19.7 million at December 31, 2008 compared to $17.6 million at December 31, 2008. The increased automated inspection systems backlog included increases in tobacco systems and the new Manta product. Process systems backlog decreased by $9.8 million, or 52%, to $8.9 million at the end of the first quarter of fiscal 2009 compared to $18.7 million at the same time a year ago. The backlog decrease for process systems was primarily related to vibratory products and pharmaceutical systems. Backlog by product line at December 31, 2008 was 67% automated inspection systems, 31% process systems, and 2% parts and service, compared to 48% automated inspection systems, 51% process systems, and 1% parts and service on December 31, 2008.
Orders decreased by $12.1 million, or 35%, to $22.9 million in the first quarter of fiscal 2009 compared to the first quarter new orders of $35.0 million during the same period a year ago. Orders for automated inspection systems during the first quarter of fiscal 2009 decreased $3.1 million, or 21%, to $11.8 million from $14.9 million in the comparable quarter of fiscal 2008. The decrease was driven by orders in North America and Europe. Process system orders decreased $8.9 million, or 56%, during the first quarter of fiscal 2009 to $6.9 million compared to $15.8 million in the first quarter of fiscal 2008. The decrease in process systems orders from the first quarter of fiscal 2008 was due significantly to decreased orders for vibratory products in both North America and Europe. Orders for parts and service were $4.3 million in the first quarter of fiscal year 2009 and 2008.
For the three months ended December 31, 2008, net cash decreased by $15.4 million to $20.9 million on December 31, 2008 from $36.3 million on September 30, 2008. Cash used in operating activities was $5.4 million during the three-month period ended December 31, 2008. Investing activities consumed $8.1 million of cash, including $6.5 million associated with the purchase of the Company s headquarters facility in Walla Walla, Washington. Financing activities used $1.8 million of cash, including $8.4 million for stock repurchases offset by the $6.4 million of proceeds associated with the new mortgage on the Walla Walla headquarters facility. The effect of exchange rate changes on cash was a negative $103,000 during the first three months of fiscal 2009.
Cash used in operating activities during the three-month period ended December 31, 2008 was $5.4 million compared to $141,000 of cash used in operating activities for the comparable period in fiscal 2008. The primary contributor was the change in non-cash working capital. In the first three months of fiscal 2008, changes in non-cash working capital used $2.0 million of cash from operating activities. During the first three months of fiscal 2009, changes in non-cash working capital used $6.9 million of cash from operating activities. The major changes in current assets and current liabilities during the first three months of fiscal 2009 were decreased accounts payable of $2.7 million and customer deposits of $2.6 million, offset by decreased trade receivables of $3.8 million, all related to decreased sales and order volumes. In addition, there were increases in inventories of $1.2 million and prepaid expenses of $2.0 million, along with decreases in accrued payroll liabilities and commissions of $1.1 million.
Net cash used in financing activities during the first three months of fiscal 2009 was $1.8 million, compared with net cash provided by financing activities of $595,000 during the corresponding period in fiscal 2008. The net cash used in financing activities during the first three months of fiscal 2009 resulted from the $8.4 million used in the stock repurchase program offset by the $6.4 million of proceeds associated with the new mortgage on the Walla Walla headquarters facility. Financing activities during the first three months of the prior fiscal year included $345,000 generated from the issuance of common stock relating to employee stock option exercises and $250,000 from excess tax benefits from share-based payments. Subsequent to December 31, 2008, the Company repurchased an additional 80,818 shares for $1.6 million under its stock repurchase program.
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KEY TECHNOLOGY INC. designs manufactures sells and services process automation systems integrating electro-optical automated inspection and sorting systems specialized conveying systems and product preparation systems. Key Technology Inc. has a market cap of $69.72 million; its shares were traded at around $13.99 with a P/E ratio of 10.78 and P/S ratio of 0.52.
Highlight of Business Operations:
Net sales of $27.4 million in the first fiscal quarter of 2009 were $1.6 million, or 5%, lower than net sales of $28.9 million in the corresponding quarter a year ago. International sales were 44% of net sales for the first fiscal quarter of 2009 compared to 59% in the corresponding prior year period. Backlog of $29.3 million at the end of the first fiscal quarter of 2009 represented a $7.5 million, or 20%, decrease from the ending backlog of $36.8 million in the corresponding quarter a year ago. Net earnings for the first quarter of fiscal 2009 were $569,000, or $0.11 per diluted share. Net earnings for the same period last year were $1.1 million, or $0.20 per diluted share. Customer orders in the first quarter of fiscal 2009 of $22.9 million were down $12.1 million, or 35%, compared to the orders of $35.0 million in the first quarter of fiscal 2008. Orders were down across all major geographic areas, product lines and markets. During the first quarter of fiscal 2009, under challenging economic conditions, the Company continued to focus on growing market share and revenues in its established markets and geographies, strengthening its presence in the pharmaceutical and nutraceutical market, increasing upgrade system sales, and continuing to establish its global market presence.Total backlog was $29.3 million at the end of the first quarter of fiscal 2009 and was $7.5 million lower than the $36.8 million backlog at the end of the first quarter in the prior fiscal year. Backlog for automated inspection systems was up $2.1 million, or 12%, to $19.7 million at December 31, 2008 compared to $17.6 million at December 31, 2008. The increased automated inspection systems backlog included increases in tobacco systems and the new Manta product. Process systems backlog decreased by $9.8 million, or 52%, to $8.9 million at the end of the first quarter of fiscal 2009 compared to $18.7 million at the same time a year ago. The backlog decrease for process systems was primarily related to vibratory products and pharmaceutical systems. Backlog by product line at December 31, 2008 was 67% automated inspection systems, 31% process systems, and 2% parts and service, compared to 48% automated inspection systems, 51% process systems, and 1% parts and service on December 31, 2008.
Orders decreased by $12.1 million, or 35%, to $22.9 million in the first quarter of fiscal 2009 compared to the first quarter new orders of $35.0 million during the same period a year ago. Orders for automated inspection systems during the first quarter of fiscal 2009 decreased $3.1 million, or 21%, to $11.8 million from $14.9 million in the comparable quarter of fiscal 2008. The decrease was driven by orders in North America and Europe. Process system orders decreased $8.9 million, or 56%, during the first quarter of fiscal 2009 to $6.9 million compared to $15.8 million in the first quarter of fiscal 2008. The decrease in process systems orders from the first quarter of fiscal 2008 was due significantly to decreased orders for vibratory products in both North America and Europe. Orders for parts and service were $4.3 million in the first quarter of fiscal year 2009 and 2008.
For the three months ended December 31, 2008, net cash decreased by $15.4 million to $20.9 million on December 31, 2008 from $36.3 million on September 30, 2008. Cash used in operating activities was $5.4 million during the three-month period ended December 31, 2008. Investing activities consumed $8.1 million of cash, including $6.5 million associated with the purchase of the Company s headquarters facility in Walla Walla, Washington. Financing activities used $1.8 million of cash, including $8.4 million for stock repurchases offset by the $6.4 million of proceeds associated with the new mortgage on the Walla Walla headquarters facility. The effect of exchange rate changes on cash was a negative $103,000 during the first three months of fiscal 2009.
Cash used in operating activities during the three-month period ended December 31, 2008 was $5.4 million compared to $141,000 of cash used in operating activities for the comparable period in fiscal 2008. The primary contributor was the change in non-cash working capital. In the first three months of fiscal 2008, changes in non-cash working capital used $2.0 million of cash from operating activities. During the first three months of fiscal 2009, changes in non-cash working capital used $6.9 million of cash from operating activities. The major changes in current assets and current liabilities during the first three months of fiscal 2009 were decreased accounts payable of $2.7 million and customer deposits of $2.6 million, offset by decreased trade receivables of $3.8 million, all related to decreased sales and order volumes. In addition, there were increases in inventories of $1.2 million and prepaid expenses of $2.0 million, along with decreases in accrued payroll liabilities and commissions of $1.1 million.
Net cash used in financing activities during the first three months of fiscal 2009 was $1.8 million, compared with net cash provided by financing activities of $595,000 during the corresponding period in fiscal 2008. The net cash used in financing activities during the first three months of fiscal 2009 resulted from the $8.4 million used in the stock repurchase program offset by the $6.4 million of proceeds associated with the new mortgage on the Walla Walla headquarters facility. Financing activities during the first three months of the prior fiscal year included $345,000 generated from the issuance of common stock relating to employee stock option exercises and $250,000 from excess tax benefits from share-based payments. Subsequent to December 31, 2008, the Company repurchased an additional 80,818 shares for $1.6 million under its stock repurchase program.
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