Key Technology (KTEC) to Cut 8% of Global Workforce

Key Technology (NASDAQ: KTEC) announced that it is taking cost reduction initiatives during the third quarter of its fiscal 2014 that include a planned reduction of approximately 8% of its global workforce. Company earnings for the third quarter of fiscal 2014 will be adversely affected by an estimated pre-tax charge of approximately $1.2 million related to the workforce reduction. Approximately one half of these cost reduction initiatives will reduce future costs in operating expense areas, with the remainder reducing costs in manufacturing operations. The Company expects the majority of the cost reductions to be fully implemented by the end of fiscal 2014.

Jack Ehren, President and Chief Executive Officer commented, "We remain focused and confident that we are continuing to build a strong, sustainable foundation and strategy for the company. While we are continuing to establish this new foundation, we remain vulnerable to the impact of cyclical trends in our core markets. We are committed to improving the Company's profitability in the short-term, while still executing on our long-term vision and strategy that we believe will drive sustainable success and results for our shareholders, customers and employees."

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