KEY TECHNOLOGY INC
10-Q/A, 1996-11-21
SPECIAL INDUSTRY MACHINERY (NO METALWORKING MACHINERY)
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<PAGE>
                                  UNITED STATES
                       SECURITIES AND EXCHANGE COMMISSION
                           WASHINGTON, D.C. 20549-1004

                     -------------------------------------

                                    FORM 10-Q/A
                                  Amendment No. 1

     /X/ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
          SECURITIES EXCHANGE ACT OF 1934 for the quarterly
          period ended June 30, 1996

                                       or

    / / TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
          SECURITIES EXCHANGE ACT OF 1934


                           Commission File No. 0-21820

                     -------------------------------------

                              KEY TECHNOLOGY, INC.
         (Exact name of Registrant as specified in its charter)

              Oregon                       93-0822509
    (State of Incorporation) (I.R.S. Employer Identification No.)

          150 Avery Street, Walla Walla, Washington    93-0822509
          (Address of principal executive offices)     (Zip Code)

                                 (509) 529-2161
          (Registrant's telephone number, including area code)


           
- ---------------------------------------------------------

     Indicate by check mark whether the registrant (1) has filed
all reports required to be filed by Sections 13 or 15(d) of the
Securities Exchange Act of 1934 during the preceding 12 months
(or for such shorter period that the registrant was required to
file such reports), and (2) has been subject to such filing
requirements for the past 90 days.         Yes /X/    No / /

     The number of shares outstanding of the Registrant's common
stock, no par value, on July 31, 1996 was 4,654,885 shares. 

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<PAGE>

Part II.  OTHER INFORMATION

Item 6.   Exhibits and Reports on Form 8-K.

     (a)  Exhibits

          (10.1) Lease Agreement dated April 18, 1996 between the
                    Port of Walla Walla and Registrant.

          (27)   Financial Data Schedule.

     (b)  Report on Form 8-K

          No Current Reports on Form 8-K were filed during the
three months ended June 30, 1996.


<PAGE>


                                   SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of
1934, the registrant has duly caused this report to be signed on
its behalf by the undersigned thereunto duly authorized.

                                        KEY TECHNOLOGY, INC.
                                             (Registrant)



Date:  November 18, 1996           /s/ Steven D. Evans
                                   ------------------------------
                                       Steven D. Evans,
                                        Vice President of Finance 
                                         and Administration and
                                         Chief Financial Officer
                                        (Principal Financial and 
                                          Accounting Officer)


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                                 EXHIBIT INDEX

Exhibit                                                     Page
- -------                                                     ----

10.1      Lease Agreement dated April 18, 1996 between 
            the Port of Walla Walla and Registrant 

27        Financial Data Schedule

/TEXT>


<TABLE> <S> <C>



<ARTICLE> 5
<LEGEND>
     THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION
EXTRACTED FROM KEY TECHNOLOGY, INC.'S CONSOLIDATED FINANCIAL
STATEMENTS CONTAINED IN ITS QUARTERLY REPORT ON FORM 10-Q FOR THE
PERIOD ENDED JUNE 30, 1996 AND IS QUALIFIED IN ITS ENTIRETY BY
REFERENCE TO SUCH FINANCIAL STATEMENTS.
</LEGEND>

<PERIOD-TYPE>                      9-MOS
<FISCAL-YEAR-END>                            SEP-30-1996
<PERIOD-END>                                 JUN-30-1996
<CASH>                                       6,609
<SECURITIES>                                 5,667
<RECEIVABLES>                                7,254
<ALLOWANCES>                                 (214)
<INVENTORY>                                  12,740
<CURRENT-ASSETS>                             33,272
<PP&E>                                       11,707
<DEPRECIATION>                               (6,620)
<TOTAL-ASSETS>                               39,527
<CURRENT-LIABILITIES>                        13,352
<BONDS>                                      541
                        0
                                  0
<COMMON>                                     8,694
<OTHER-SE>                                   16,497
<TOTAL-LIABILITY-AND-EQUITY>                 39,527
<SALES>                                      34,498
<TOTAL-REVENUES>                             35,125
<CGS>                                        20,842
<TOTAL-COSTS>                                20,842
<OTHER-EXPENSES>                             10,803
<LOSS-PROVISION>                             45
<INTEREST-EXPENSE>                           36
<INCOME-PRETAX>                              3,399
<INCOME-TAX>                                 912
<INCOME-CONTINUING>                          2,487
<DISCONTINUED>                               0
<EXTRAORDINARY>                              0
<CHANGES>                                    0
<NET-INCOME>                                 2,487
<EPS-PRIMARY>                                0.54
<EPS-DILUTED>                                0.54
        

</TABLE>


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