Ehren continued, "Gross margins for the three-month period ended June 30, 2013 continue to show improvement over the prior fiscal year due primarily to more efficient plant utilization and improved product mix. The third quarter of fiscal 2013 was only moderately affected by acquisition-related fair value adjustments, which are expected to have a larger impact in the fourth quarter. In addition, fourth-quarter margins are expected to be affected by a less favorable product mix."
Net sales for the nine months ended June 30, 2013 were $94.8 million, compared with $87.8 million for the comparable period in fiscal 2012. For the nine months ended June 30, 2013, gross profit was $32.6 million, compared to $26.9 million for the same nine-month period of fiscal 2012, or 34.4% and 30.7% of sales, respectively. Operating expenses for the nine months ended June 30, 2013 were $28.7 million, or 30.3% of sales, compared to $27.5 million, or 31.3% of sales, for the corresponding period of fiscal 2012. The Company reported net earnings for the nine months ended June 30, 2013 of $2.7 million, or $0.47 per diluted share, compared to a net loss of $705,000, or $0.13 per diluted share, for the corresponding period in fiscal 2012.
Ehren concluded, "As part of our strategic initiatives, we are pleased to be able to announce the licensing and distribution agreements with EVK and Insort. Key has entered into an exclusive licensing agreement with EVK and Insort to deploy Chemical Imaging Technology (CIT®) and integrate new hyperspectral developments into Key systems, and an exclusive distribution agreement to market Insort's complementary sorting solutions to strategic potato processing customers worldwide. Additionally, we are very positive regarding our progress with the integration of Visys and Key, enabling us to address new market opportunities and to accelerate our development of next-generation sorting technologies. These milestones are in alignment with our strategic imperatives, and further demonstrate our commitment to bring true innovation and industry-leading solutions to our customers. These partnerships are enabling us to build a strong foundation that positively positions Key to execute on our long-term strategies."