SECURITIES AND EXCHANGE COMMISSION
                             Washington, D.C. 20549

                                  SCHEDULE 13G

                                 (RULE 13d-102)

             INFORMATION TO BE INCLUDED IN STATEMENTS FILED PURSUANT
            TO RULES 13d(b)(c), AND (d) AND AMENDMENTS THERETO FILED
                            PURSUANT TO RULE 13d-2(b)

                                (AMENDMENT NO.1)

                              Key Technology, Inc.
                                (Name of Issuer)

                      Series B Convertible Preferred Stock
                         (Title of Class of Securities)

                                    493143200
                                 (CUSIP Number)

                                  May 16, 2002
                  (Date of Event Which Requires Filing of This
                                   Statement)

Check the appropriate box to designate the rule pursuant to which this Schedule
is filed:
                               [ ] Rule 13d-1(b)

                               [X] Rule 13d-1(c)

                               [ ] Rule 13d-1(d)

                                   Page 1 of 4



*     The remainder of this cover page shall be filled out for a reporting
      person's initial filing on this form with respect to the subject class of
      securities, and for any subsequent amendment containing information which
      would alter disclosures provided in a prior cover page.

The information required on the remainder of this cover page shall not be deemed
to be "filed" for the purpose of Section 18 of the Securities Exchange Act of
1934 or otherwise subject to the liabilities of that section of the Act but
shall be subject to all other provisions of the Act (however, see the Notes).



CUSIP NO.          493143200         13G/A                    PAGE 2 OF 4 PAGES
                                                  

1     NAME OF REPORTING PERSON

      S.S. OR I.R.S. IDENTIFICATION NO. OF ABOVE PERSON
      Lloyd I. Miller, III                                         279-42-7925

2     CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP*        (a)   [ ]
                                                               (b)   [ ]

3     SEC USE ONLY

4     CITIZENSHIP OR PLACE OF ORGANIZATION
      United States


      NUMBER OF
        SHARES
      BENEFICIALLY
       OWNED BY
         EACH
      REPORTING
       PERSON
        WITH

                           5     SOLE VOTING POWER
                                 82,155


                           6     SHARED VOTING POWER
                                 37,680

                           7     SOLE DISPOSITIVE POWER
                                 82,155

                           8     SHARED DISPOSITIVE POWER
                                 37,680

9     AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
      119,835

10    CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (9) EXCLUDES CERTAIN SHARES* [ ]

11    PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (9)
      10.5%

12    TYPE OF REPORTING PERSON
      IN-IA-OO*


                      *SEE INSTRUCTIONS BEFORE FILLING OUT!

                                                                     Page 3 of 4



                                                                          
Item 1(a).  Name of Issuer:                                                     Key Technology, Inc.

Item 1(b).  Address of Issuers's Principal Executive Offices:                   150 Avery Street
                                                                                Walla Walla, Washington 99362

Item 2(a).  Name of Person Filing:                                              Lloyd I. Miller, III

Item 2(b).  Address of Principal Business Office or, if None, Residence:        4550 Gordon Drive, Naples, Florida
                                                                                34102

Item 2(c).  Citizenship:                                                        U.S.A.

Item 2(d).  Title of Class of Securities:                                       Series B Convertible Preferred Stock

Item 2(e).  CUSIP Number:                                                       493143200


Item 3.     IF THIS STATEMENT IS FILED PURSUANT TO RULE 13d-1(b) OR 13d-2(b)
            or (c), CHECK WHETHER THE PERSON FILING IS A:

            Not Applicable, this statement is filed pursuant to 13d-1(c)

Item 4.     OWNERSHIP: The reporting person shares dispositive and voting
            power with respect to 37,680 of the reported securities as an
            advisor to the trustee of certain family trusts. Miller has sole
            dispositive and voting power with respect to 82,155 of the reported
            securities as an individual and as the manager of a limited
            liability company that is the general partner of certain limited
            partnerships.

            (a)   119,835

            (b)   10.6%

            (c)   (i) sole voting power: 82,155

                  (ii) shared voting power: 37,680

                  (iii) sole dispositive power: 82,155

                  (iv) shared dispositive power: 37,680

Item 5.     OWNERSHIP OF FIVE PERCENT OR LESS OF A CLASS:

            Not Applicable

Item 6.     OWNERSHIP OF MORE THAN FIVE PERCENT ON BEHALF OF ANOTHER PERSON:

Persons other than Lloyd I. Miller, III have the right to receive or the power
to direct the receipt of dividends from, or the proceeds from the sale of, the
reported securities.

                                                                     Page 4 of 4



Item 7.     IDENTIFICATION AND CLASSIFICATION OF THE SUBSIDIARY WHICH ACQUIRED
            THE SECURITY BEING REPORTED ON BY THE PARENT HOLDING COMPANY:

            Not Applicable

Item 8.     IDENTIFICATION AND CLASSIFICATION OF MEMBERS OF THE GROUP:
            Not Applicable

Item 9.     NOTICE OF DISSOLUTION OF GROUP:
            Not Applicable

Item 10.    CERTIFICATION:

By signing below I certify that, to the best of my knowledge and belief, the
securities referred to above were not acquired and are not held for the purpose
of or with the effect of changing or influencing the control of the issuer of
the securities and were not acquired and are not held in connection with or as a
participant in any transaction having that purpose or effect.

                                    SIGNATURE

      After reasonable inquiry and to the best of my knowledge and belief, I
certify that the information set forth in this statement is true, complete and
correct.

Dated: August 26, 2002
                                    /s/ Lloyd I. Miller, III
                                    --------------------------------------------
                                        Lloyd I. Miller, III