Key Technology Announces Cost Reductions and Stock Repurchase Program
WALLA WALLA, Wash., May 31, 2012 (GLOBE NEWSWIRE) -- Key Technology, Inc. (Nasdaq:KTEC) announced today that it is taking cost reduction initiatives during the third quarter of fiscal 2012 that include a planned reduction of approximately 11% of its global workforce. Company earnings for the third quarter will be adversely affected by an estimated pre-tax charge of approximately $1.0 million related to the workforce reduction. Approximately two-thirds of these workforce reductions will reduce future costs in operating expense areas, with the remainder reducing costs in manufacturing operations.
Jack Ehren, President and Chief Executive Officer commented, "Recent results are not acceptable as benchmarks for future performance. We are committed to returning the Company to profitability in the short-term, while also executing a long-term vision and strategy that will ensure sustainable success and results for our shareholders, customers and employees."
In addition, the Company announced that its Board of Directors has authorized the purchase of up to 500,000 shares of the Company's outstanding common stock under a new repurchase program to be managed by Needham & Company and conducted under the guidelines provided by Rule 10b-18 of the Securities Exchange Commission.
Ehren also commented, "This stock repurchase program will provide increased liquidity opportunities for some of our shareholders, while also providing what we think will be a good investment for our continuing shareholders."
About Key Technology
Key Technology, Inc., headquartered in Walla Walla, Washington, is a worldwide leader in the design and manufacture of process automation systems for the food processing, industrial and pharmaceutical markets. The Company's products integrate electro-optical inspection and sorting, specialized conveying and product preparation equipment, which allows processors to improve quality, increase yield and reduce cost. Key has manufacturing facilities in Washington, Oregon, and the Netherlands, and worldwide sales and service coverage.
This release contains forward-looking statements within the meaning of the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995. These statements are based on management's current expectations or beliefs and are subject to a number of factors and uncertainties that could cause actual results to differ materially from those described in the forward-looking statements. The forward-looking statements in this release address future financial and operating results.
The following factors, among others, could cause actual results to differ materially from those described in the forward-looking statements:
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