Key Technology, Inc. (KTEC) swung to a net profit for the quarter ended Dec. 31, 2016. The company has made a net profit of $0.02 million in the quarter, against a net loss of $1.70 million in the last year period. Revenue during the quarter grew 10.32 percent to $27.36 million from $24.80 million in the previous year period. Gross margin for the quarter expanded 559 basis points over the previous year period to 33.73 percent. Operating margin for the quarter period stood at positive 0.37 percent as compared to a negative 9.66 percent for the previous year period.
Operating income for the quarter was $0.10 million, compared with an operating loss of $2.40 million in the previous year period.
Jack Ehren, president and chief executive officer, stated, "While our first quarter is historically a lower revenue quarter for Key, during the first quarter of fiscal 2017 we realized higher gross margins and positive operating income on revenues of $27.4 million. The quarter-over-quarter gross margin improvement resulted from a more favorable mix of our higher-margin Automated Inspection Systems products and increased margins in our Process Systems product lines."
Working capital increases
Key Technology, Inc. has recorded an increase in the working capital over the last year. It stood at $36.26 million as at Dec. 31, 2016, up 9.59 percent or $3.17 million from $33.09 million on Dec. 31, 2015. Current ratio was at 2.26 as on Dec. 31, 2016, up from 2.18 on Dec. 31, 2015. Cash conversion cycle (CCC) has decreased to 88 days for the quarter from 168 days for the last year period. Days sales outstanding went down to 52 days for the quarter compared with 54 days for the same period last year.
Days inventory outstanding has decreased to 86 days for the quarter compared with 165 days for the previous year period. At the same time, days payable outstanding went down to 50 days for the quarter from 51 for the same period last year.
Debt comes down
Key Technology, Inc. has recorded a decline in total debt over the last one year. It stood at $4.97 million as on Dec. 31, 2016, down 12.09 percent or $0.68 million from $5.66 million on Dec. 31, 2015. Total debt was 5.12 percent of total assets as on Dec. 31, 2016, compared with 5.88 percent on Dec. 31, 2015. Debt to equity ratio was at 0.08 as on Dec. 31, 2016, down from 0.09 as on Dec. 31, 2015. Disclaimer: Please note that this is an auto-generated article. IRIS does not guarantee the accuracy, adequacy or completeness of any information and is not responsible for any errors or omissions or for the results obtained from the use of such information. IRIS especially states that it has no financial liability whatsoever to any user on account of the use of information provided on its website. For queries contact: editor@irisindia.net
