KEY TECHNOLOGY INC

CIK:0000906193|SEC Filings

UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) shares in Thousands, $ in Thousands	3 Months Ended
	Dec. 31, 2017	Dec. 31, 2016
Income Statement [Abstract]
Net sales	$ 31,272	$ 27,363
Cost of sales	22,706	18,133
Gross profit	8,566	9,230
Operating expenses:
Sales and marketing	4,650	4,318
Research and development	2,669	2,494
General and administrative	2,156	2,092
Amortization of intangibles	218	227
Total operating expenses	9,693	9,131
Gain on disposition of assets	0	2
Income (loss) from operations	(1,127)	101
Other income (expense)	(210)	(78)
Earnings (loss) before income taxes	(1,337)	23
Income tax expense	713	8
Net earnings (loss)	$ (2,050)	$ 15
Net earnings (loss) per share
- basic (in dollars per share)	$ (0.32)	$ 0.00
- diluted (in dollars per share)	$ (0.32)	$ 0.00
Shares used in per share calculations - basic (in shares)	6,476	6,375
Shares used in per share calculations - diluted (in shares)	6,476	6,375

UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	3 Months Ended
	Dec. 31, 2017	Dec. 31, 2016
CASH FLOWS FROM OPERATING ACTIVITIES:
Net earnings (loss)	$ (2,050)	$ 15
Adjustments to reconcile net earnings (loss) to net cash used in operating activities:
Gain on disposition of assets	0	(2)
Foreign currency exchange (gain) loss	50	(75)
Depreciation and amortization	1,009	1,016
Share based payments	231	262
Reclassification from other comprehensive income	6	6
Deferred income taxes	1,542	29
Change in fair value of derivatives	(23)	(46)
Deferred rent	1	2
Bad debt expense	18	0
Changes in assets and liabilities:
Trade accounts receivable	(1,140)	(2,652)
Inventories	(1,539)	(3,863)
Prepaid expenses and other current assets	608	(384)
Income taxes receivable	(804)	0
Accounts payable	(467)	1,530
Accrued payroll liabilities and commissions	(677)	557
Customers’ deposits	213	1,830
Accrued customer support and warranty costs	124	(91)
Income taxes payable	(36)	(24)
Other accrued liabilities	227	(524)
Other	2	(1)
Cash used in operating activities	(2,705)	(2,415)
CASH FLOWS FROM INVESTING ACTIVITIES:
Proceeds from sale of property	0	2
Purchases of property, plant and equipment	(860)	(393)
Cash used in investing activities	(860)	(391)
CASH FLOWS FROM FINANCING ACTIVITIES:
Payments on long-term debt	(120)	(163)
Proceeds from issuance of common stock	10	9
Exchange of shares for statutory withholding	(387)	(212)
Cash provided by (used in) financing activities	(497)	(366)
EFFECT OF EXCHANGE RATE CHANGES ON CASH	69	(109)
NET DECREASE IN CASH AND CASH EQUIVALENTS	(3,993)	(3,281)
CASH AND CASH EQUIVALENTS, BEGINNING OF THE PERIOD	9,337	10,491
CASH AND CASH EQUIVALENTS, END OF THE PERIOD	5,344	7,210
SUPPLEMENTAL DISCLOSURES OF CASH FLOW
Cash paid during the period for interest	79	84
Cash paid during the period for income taxes	$ 7	$ 3

UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Dec. 31, 2017	Sep. 30, 2017
Current assets:
Cash and cash equivalents	$ 5,344	$ 9,337
Trade accounts receivable, net of allowance for doubtful accounts of $284 and $299, respectively	21,450	20,177
Inventories:
Raw materials	14,943	12,606
Work-in-process and sub-assemblies	15,273	16,543
Finished goods	10,014	9,439
Total inventories	40,230	38,588
Deferred income taxes	0	4,770
Prepaid expenses and other assets	4,655	4,439
Total current assets	71,679	77,311
Property, plant and equipment, net	13,278	12,911
Deferred income taxes	2,899	1,299
Goodwill	10,809	10,616
Investment in Proditec	1,127	1,127
Intangibles and other assets, net	4,433	4,574
Total	104,225	107,838
Current liabilities:
Accounts payable	10,064	10,490
Accrued payroll liabilities and commissions	7,114	7,714
Customers' deposits	8,382	8,085
Accrued customer support and warranty costs	2,419	2,276
Customer purchase plans	1,155	1,039
Income taxes payable	1,359	1,357
Current portion of long-term debt	4,446	4,566
Other accrued liabilities	2,061	1,923
Total current liabilities	37,000	37,450
Deferred income taxes	0	1,514
Other long-term liabilities	205	222
Shareholders' equity:
Common stock	34,813	34,959
Retained earnings and other shareholders' equity	32,207	33,693
Total shareholders' equity	67,020	68,652
Total	$ 104,225	$ 107,838