No. 5 in NW100 | Key Technology brings tech focus back to processing business

Can you scan 60,000 pounds of apples an hour and pick out the bruised and banged-up ones, along with the occasional rock? Probably not, which is what's kept Key Technology in business for more than six decades.

Key's core business, so to speak, is making equipment for the fruit- and vegetable-processing industry -- sorters, inspection systems, conveyors, even a machine that identifies and snips out defects on French fries. It's a business that, for many decades, didn't change much.

"If you go back 10 years, any mechanic could have worked on our equipment," said David Camp, Key's chief executive.

But today's processors expect more from their machines. If Key has one foot metaphorically planted in the rich soil of the Palouse, the other one is in the techvana of metro Seattle's Eastside. (One of Key's newer machines, in fact, is built around the same sensor used in the Wii video-game system.)

Users can now, for instance, monitor their Key equipment remotely; the machine will notify the user if, say, a bolt falls off or a field mouse gets caught in the works.

"We've brought the technology back to Key Technology," Camp said. "People look at us as being innovative."

Key is working to leverage its investment in technology to move into other fields, especially pharmaceuticals. Though that industry is based on advanced research and sophisticated manufacturing techniques, the process of actually sorting the finished capsules and tablets and picking out the broken or defective ones is still done largely by hand.

Earlier this year, Key bought a minority stake in Proditec, a French maker of drug-inspection systems, with an option to buy the rest. Proditec focuses on tablets and two-piece capsules, complementing Key's strength in softgel capsules. The deal also tells drugmakers that Key is serious about competing, Camp said.

The recession has cut into Key's sales, though, and the company posted a $1.5 million second-quarter loss. Key laid off about 40 workers earlier this year, cut the pay of everyone remaining, and canceled all bonuses for senior management.

"We basically took the belt in," Camp said.