UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549-1004
FORM 10-Q
ý QUARTERLY
REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
for the quarterly period ended March 31, 2004
or
o TRANSITION
REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
for the transition period from to
Commission File No. 0-21820
KEY TECHNOLOGY, INC.
(Exact name of Registrant as specified in its charter)
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Oregon |
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93-0822509 |
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(State of Incorporation) |
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(I.R.S. Employer Identification No.) |
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150 Avery Street, Walla Walla, Washington |
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99362 |
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(Address of principal executive offices) |
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(Zip Code) |
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(509) 529-2161 |
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(Registrant’s telephone number, including area code) |
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Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Sections 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ý No o
Indicate by check mark whether the Registrant is an accelerated filer (as defined in Rule 12b-2 of the Exchange Act). Yes o No ý
The number of shares outstanding of the Registrant’s common stock, no par value, on April 30, 2004 was 4,936,559 shares.
KEY TECHNOLOGY, INC. AND SUBSIDIARIES
FORM 10-Q FOR THE THREE MONTHS ENDED MARCH 31, 2004
TABLE OF CONTENTS
2
ITEM 1. FINANCIAL STATEMENTS
KEY TECHNOLOGY, INC. AND SUBSIDIARIES
CONDENSED UNAUDITED CONSOLIDATED BALANCE SHEETS
MARCH 31, 2004 AND SEPTEMBER 30, 2003
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March 31, |
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September 30, |
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(in thousands) |
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Assets |
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Current assets: |
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Cash and cash equivalents |
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$ |
8,313 |
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$ |
6,442 |
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Trade accounts receivable, net |
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10,361 |
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9,479 |
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Inventories: |
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Raw materials |
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7,504 |
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6,746 |
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Work-in-process and sub-assemblies |
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4,587 |
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5,383 |
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Finished goods |
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1,870 |
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1,839 |
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Total inventories |
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13,961 |
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13,968 |
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Other current assets |
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3,178 |
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2,997 |
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Total current assets |
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35,813 |
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32,886 |
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Property, plant and equipment, net |
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5,482 |
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5,503 |
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Deferred income taxes |
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179 |
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768 |
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Intangibles and other assets, net |
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11,267 |
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12,058 |
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Total |
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$ |
52,741 |
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$ |
51,215 |
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Liabilities and Shareholders’ Equity |
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Current liabilities: |
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Accounts payable |
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2,517 |
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1,587 |
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Accrued payroll liabilities and commissions |
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4,004 |
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4,547 |
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Accrued customer support and warranty costs |
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1,098 |
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1,058 |
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Other accrued liabilities |
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2,477 |
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2,604 |
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Customers’ deposits |
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3,196 |
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4,798 |
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Current portion of long-term debt |
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1,198 |
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1,066 |
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Total current liabilities |
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14,490 |
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15,660 |
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Long-term debt |
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2,845 |
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3,249 |
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Mandatorily redeemable preferred stock and warrants |
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1,693 |
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1,882 |
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Deferred income taxes |
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180 |
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205 |
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Total shareholders’ equity |
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33,533 |
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30,219 |
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Total |
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$ |
52,741 |
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$ |
51,215 |
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See notes to condensed unaudited consolidated financial statements.
3
KEY TECHNOLOGY, INC. AND SUBSIDIARIES
CONDENSED UNAUDITED CONSOLIDATED STATEMENTS OF OPERATIONS
FOR THE THREE MONTHS ENDED MARCH 31, 2004 AND 2003
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2004 |
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2003 |
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(in thousands, except per share data) |
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Net sales |
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$ |
20,761 |
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$ |
20,927 |
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Cost of sales |
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11,869 |
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12,812 |
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Gross profit |
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8,892 |
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8,115 |
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Operating expenses: |
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Selling |
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3,333 |
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2,986 |
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Research and development |
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1,497 |
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1,203 |
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General and administrative |
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2,042 |
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1,796 |
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Amortization of intangibles |
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331 |
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330 |
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Total operating expenses |
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7,203 |
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6,315 |
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Gain on sale of assets |
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6 |
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2 |
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Earnings from operations |
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1,695 |
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1,802 |
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Other expense |
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(39 |
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(55 |
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Earnings before income taxes |
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1,656 |
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1,747 |
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Income tax expense |
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518 |
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594 |
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Net earnings |
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$ |
1,138 |
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$ |
1,153 |
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Earnings per share |
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• basic |
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$ |
0.23 |
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$ |
0.24 |
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• diluted |
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$ |
0.22 |
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$ |
0.23 |
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Shares used in per share calculations - basic |
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4,897 |
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4,770 |
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Shares used in per share calculations - diluted |
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5,285 |
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4,964 |
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See notes to condensed unaudited consolidated financial statements.
4
KEY TECHNOLOGY, INC. AND SUBSIDIARIES
CONDENSED UNAUDITED CONSOLIDATED STATEMENTS OF OPERATIONS
FOR THE SIX MONTHS ENDED MARCH 31, 2004 AND 2003
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2004 |
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2003 |
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(in thousands, except per share data) |
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Net sales |
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$ |
39,504 |
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$ |
36,322 |
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Cost of sales |
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23,557< | |||||