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AMV posts losses as purchase draws near By DAVID PRESZLER The financial struggles continue for Advanced Machine Vision, which lost nearly $1.6 million in the first quarter of 2000 as it moves closer to being bought out. The Medford-based company reported the losses from a "slow" quarter Tuesday, but said sales are expected to improve 30-35 percent in the second quarter. "The trend is definitely up," said William Young, the company's president and chief executive. "We are looking for a much stronger quarter in terms of sales." If all goes as planned, the company's second quarter, which runs to June 30, will be its last as an independent company. Advanced Machine Vision makes complex, computer-driven optical systems that spot product defects and are used mainly in the food processing and wood products industries. Washington-based Key Technology has agreed to buy the company for a combination of cash, stock and stock options valued at about $35 million. Young said the deal is scheduled to close around Aug. 1. Shareholders are expected to vote on the deal in July. The deal is expected to eliminate some jobs at Advanced Machine, though Young said nothing "drastic" is expected. The company employs 145 people at its SRC Vision subsidiary in Medford and 20 at Ventek Inc. in Eugene. Young said Key executives met with the company's employees last week and said firmer plans about any reductions will be announced in 30 days. Redundancies, largely in administration, will be eliminated. As for the quarter results, the $1.589 million loss comes on the heels of a year in which the company lost $2.9 million. In the first quarter of 1999, the company lost $576,000. Sales for the first quarter of 2000 were $5.388 million, up from $5.158 million a year ago. Company officials said about $200,000 of the loss came from merger legal expenses, while most of the remainder was tied to the cost of introducing the latest sorting system and entering new markets. Today's Edition : News | Sports | Business | Weather | Tempo | Classifieds Mail Tribune Copyright � The Mail Tribune 2000, Medford, Oregon USA