UPDATE: Needham Reiterates On Key Technology Following Weaker-Than-Expected FQ4 Orders

In a report published Friday, Needham analyst James Ricchiuti reiterated a Hold rating on Key Technology KTEC. In the report, Needham says "KTEC's nascent earnings recovery seems to have hit a speed bump as weaker-than-expected FQ4 orders are expected to result in a much slower start to F14. FQ4 results were much stronger than expected, with revenues and EPS coming in well ahead of our expectations. Mgmt is targeting F14 to be a growth year, based on what the company still sees as a solid funnel of opportunities in the core business, with F15 likely to benefit from new products aimed at adjacent markets. We are lowering our estimates for F14 to reflect the slower start to the year. We are maintaining our Hold rating for now and would expect KTEC shares to pull back on the disappointing FQ1 guidance." Key Technology closed on Thursday at $14.75.