Key Technology (KTEC) was founded 60 years ago as a maker of vegetable processing equipment. In the meantime, Key has morphed into a global supplier to the food industry. It melds electro-optical automated inspection and sorting systems with processing systems that include conveyors and preparation equipment to pinpoint and eject unacceptable matter in the food flow. Its systems improve product yield and quality over manual sorting and defect removal, saving on labor costs.
Mastering the food chain has its rewards. Key closed fiscal 2007 on Sept. 30 with annual sales of $107.5 million, up 27% from the previous year. Earnings were $1.37 per diluted share, turning around a loss of $0.15 in fiscal 2006. Key topped the year with a first-rate fourth quarter, exceeding the expectations of the one analyst who covers the company. Earnings were $0.42 per share versus a loss of $0.11 in the year-ago quarter. Revenues were $31.7 million, up 31%.
Credited with putting Key on the growth track is CEO David Camp, who joined the company in September 2006. From 2002 through 2006, Key’s revenues were virtually flat. But since Camp’s arrival, the company has reduced its expense structure, closing its sluggish Freshline processing equipment operation in Australia and consolidating most of its Medford, Ore., operations in its headquarters in Walla Walla, Wash., among other changes. The company’s strategie to invest in China and pharmaceuticals are working, and are to continue in 2008.
