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OREGON
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0-21820
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93-0822509
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(State
or other jurisdiction
of
incorporation)
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(Commission
File Number)
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(IRS
Employer
Identification
No.)
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¨
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Written
communications pursuant to Rule 425 under the Securities Act (17 CFR
230.425)
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¨
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Soliciting
material pursuant to Rule 14a-12 under the Exchange Act (17 CFR
240.14a-12)
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¨
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Pre-commencement
communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR
240.14d-2(b))
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¨
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Pre-commencement
communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR
240.13e-4(c))
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ITEM
2.05
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COSTS
ASSOCIATED WITH EXIT OR DISPOSAL ACTIVITIES
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On
March 26, 2009, Key Technology, Inc. (the “Company”) announced a reduction
of approximately 7% in its global workforce effective April 3, 2009 as a
part of the Company’s cost reduction initiatives in response to current
economic conditions. The Company estimates that the total costs
to be incurred related to the workforce reduction will be approximately
$800,000, all of which will be severance and employee related costs, with
the majority of the associated cash expenditures to be incurred in the
third quarter of fiscal 2009. Approximately $700,000 of these
costs will be recorded in the second quarter of fiscal 2009.
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ITEM
8.01
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OTHER
EVENTS
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On
March 26, 2009, the Company announced it is taking a variety of cost
reduction initiatives during fiscal 2009 to maintain profitability for the
fiscal year. These cost reduction initiatives include a
planned reduction of approximately 7% in its global workforce. The
initiatives also include cancellation of fiscal year cash and stock
incentive awards, temporary reductions in pay for all U.S. personnel,
suspension of 401(k) matching, mandatory leave and other cost reduction
measures.
The
Company also announced that it expects results of operations in the
current fiscal year will be adversely affected by current economic
conditions. The Company estimates that net sales for the second
fiscal quarter of 2009 will be 10% to 15% lower than net sales in the
first fiscal quarter of 2009 and, as a result, projects an after-tax net
loss for the second quarter of between $1.5 million and $2.0
million. The projected net loss for the second quarter includes
a $700,000 pre-tax charge for termination benefits related to the
workforce reduction and a $343,000 pre-tax write-off of previously
incurred costs associated with a potential facility
expansion. The Company is currently expecting the results for
the second half of fiscal 2009 to show improvement over the first half of
fiscal 2009. In view of current developments and general
economic conditions, the Company currently anticipates that net sales for
fiscal 2009 will be approximately 20% lower than net sales in fiscal
2008. At such reduced level of net sales, the Company expects
it will be modestly profitable in fiscal 2009.
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ITEM
9.01
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FINANCIAL
STATEMENTS AND EXHIBITS
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(d)
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Exhibits
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The
following exhibit is furnished with this Current Report on Form
8-K:
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99.1
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Press
Release of Key Technology, Inc., dated March 26, 2009
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KEY
TECHNOLOGY, INC.
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/s/ John J.
Ehren
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John
J. Ehren
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Senior
Vice President and Chief Financial
Officer
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Exhibit
No.
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Description
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99.1
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Press
release of Key Technology, Inc., dated March 26,
2009
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