Key Tronic Corporation (NASDAQ:KTCC), a provider of electronic manufacturing services (EMS), today announced its results for the quarter ended April 2, 2011.
For the third quarter of fiscal 2011, Key Tronic reported total revenue of $63.4 million, up 23% from $51.7 million in the same period of fiscal 2010. For the first nine months of fiscal 2011, total revenue was $187.8 million, up 36% from $137.8 million in the same period of fiscal 2010.
Net income for the third quarter of fiscal 2011 was $0.7 million or $0.07 per diluted share, compared to $4.4 million or $0.43 per diluted share for the same period of fiscal 2010. Results for the third quarter of fiscal 2011 reflect increased material, freight and operational expenses associated with the Company’s new product mix and program startups. Results for the third quarter of fiscal 2010 included a net deferred tax benefit of $2.2 million or approximately $0.22 per diluted share. For the first nine months of fiscal 2011, net income was $4.2 million or $0.40 per diluted share, compared to $6.4 million or $0.63 per diluted share for the same period of fiscal 2010.
“We’re pleased with our strong year-over-year revenue growth for the third quarter and for the first nine months of fiscal 2011, driven primarily by the production ramp ups of new programs,” said Craig Gates, President and Chief Executive Officer, “During the third quarter of fiscal 2011, the revenue contribution from those of our new programs that have been ramped was mostly offset by forecast reductions in some longstanding customer programs. At the same time, we have continued to diversify our future revenue base by winning new programs involving mobile device accessories, aerospace and household products.“Moving into the fourth quarter of fiscal 2011, we are seeing some increased demand in the forecasts from our longstanding customers, and we continue to focus on moving the new programs into production. We expect to be generating revenue from 30 EMS customers in the fourth quarter compared to 20 EMS customers contributing to fourth quarter revenue in fiscal year 2010.”