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Key Technology Inc. (KTEC) Helps Food Processing Clients Meet Essential Business Requirements

Food safety is a key concern all over the world. US consumer expectations with respect to qualities of what they buy to eat and to drink, set standards for all countries. That is because North America is such an important market for all food processors. Process automation is a strategic area for investors interested in the Miscellaneous Capital Goods industry, because demand can be sustained regardless of general economic conditions.

Manual quality assurance processes have dual disadvantages for food processors. Workers on conveyor lines are prone to human errors, and also limit outputs per shift. Process automation not only improves food safety levels, but allows industrial clients to become more competitive as well. This company’s products and services are therefore integral to the continued business successes of its customers.

The stock has important attractions compared to its industry peers. Annual sales growth has not only been higher than for the Miscellaneous Capital Goods industry over the past twelve months, but the gap has increased further in the company’s favor during the Most Recent Quarter. The Gross Margin is also better, though Net Profit seems to have been impacted by relatively heavy investments in technology upgrades at a time when Capital Spending declined sharply in the industry. Investors with long term objectives will not see this trend negatively. The recent management decision to appoint a full-time professional to service potato processing industrial clients is to be seen as another sign of strong future growth potential for this stock.

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