Key Technology, Inc.
) 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
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
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.
) 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
) 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.
) 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.
COLUMBUS MCKINN (CMCO): Free Stock Analysis
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KEY TECHNOLOGY (KTEC): Free Stock Analysis
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