Walla Walla manufacturing firm Key Technology has revised its second quarter financial results with the resolution of litigation.
After resolving intellectual property litigation between its subsidiary Visys N.V. and Tomra Sorting N.V., the company has recorded an additional accrual of about $555,000 pretax for the second quarter that ended March 31.
“We are very pleased to have reached a settlement of this long-standing litigation and to put this matter behind us,” said Key President and CEO Jack Ehren in a prepared statement. “The settlement enables us to now fully focus on our current and future opportunities.”
Key and Visys N.V. had entered into the settlement agreement with Tomra Systems and Tomra Sorting N.V., formerly BEST N.V., April 29. That was five days after its quarterly financial report was announced to the media.
The litigation was related to alleged infringement of intellectual property rights owned by Tomra Sorting and Visys. The parties have resolved all disputes and waived all future rights of action associated with the matter.
Consequently, Key’s operating expenses for the quarter that ended March 31 increased by $550,000 to $11.2 million. The net loss for the quarter increased to $697,000, or 11 cents per diluted share, compared to the previously disclosed net loss of $334,000, or 5 cents per diluted share.
Strictly Business is a local business column. Vicki Hillhouse can be reached at firstname.lastname@example.org, 526-8321 or @VickiHillhouse.