Key Tronic Corporation Announces First Quarter Results
Key Tronic Corporation (Nasdaq:KTCC), a provider of electronic manufacturing services (EMS), today announced its results for the quarter ended October 2, 2010.
For the first quarter of fiscal 2011, Key Tronic reported total revenue of $63.3 million, up 53% from $41.3 million in the same period of fiscal 2010. Net income for the first quarter of fiscal 2011 was $1.7 million or $0.17 per diluted share, compared to $0.3 million or $0.03 per diluted share for the same period of fiscal 2010.
The Company continued to maintain strong operating efficiencies. For the first quarter of fiscal 2011, gross margin was 9% and operating margin was 4%, up from 6% and 1%, respectively, in the same period of fiscal 2010.
“We’re very pleased with our strong growth in revenue and earnings for the first quarter of fiscal 2011, driven by the production ramp up for new programs from both new and longstanding customers,” said Craig Gates, President and Chief Executive Officer, “We achieved the highest quarterly revenue in Key Tronic’s history and continued to significantly increase our profitability over the same quarter of the prior year, despite approximately $3.5 million in production delays due to continued industry-wide shortages in the global supply chain.“During the first quarter of fiscal 2011, we continued to diversify our revenue base by winning new programs involving electric motor controller components and innovative display devices. We anticipate strong growth in the second half of fiscal 2011 and expect record revenue for the year. With our unique combination of world-class engineering, global logistics and cost-effective production, we’re increasingly well positioned to continue to capture market share and capitalize on emerging opportunities.” Business Outlook For the second quarter of fiscal 2011, the Company expects to report revenue in the range of $61 million to $64 million, and earnings in the range of $0.17 to $0.20 per diluted share. For the full year, Key Tronic expects revenue of $270 million to $280 million and diluted earnings per share of $0.75 to $0.85. The Company’s forecasts for 2011 may be adversely impacted by continuing shortages of parts in the supply chain that could result in variances in its results as the world’s electronic parts supply ramps up to meet demand, changes in customer forecasts and new program ramp rates.
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