Key Tronic Corporation (Nasdaq:KTCC), a provider of electronic manufacturing services (EMS), today announced its results for the quarter ended October 1, 2011.
For the first quarter of fiscal 2012, Key Tronic reported total revenue of $69.8 million, up 10% from $63.3 million in the same period of fiscal 2011. Net income for the first quarter of fiscal 2012 was $1.2 million or $0.12 per diluted share, compared to $1.7 million or $0.17 per diluted share for the same period of fiscal 2011.
For the first quarter of fiscal 2012, gross margin was 7% and operating margin was 2%, compared to 9% and 4%, respectively, in the same period of fiscal 2011. As projected, gross margins were impacted this quarter by expenses associated with several steep new program ramps, as well as product mix changes. For the coming quarter, given its anticipated growth and product mix, the Company expects to see its gross margins in the range of 7% to 8%.
“We’re very pleased with our strong growth in revenue for the first quarter of fiscal 2012, driven by the production ramp up for new programs from both new and longstanding customers,” said Craig Gates, President and Chief Executive Officer, “During the quarter, we achieved the highest quarterly revenue in Key Tronic’s history and continued to diversify our future revenue base by winning new programs involving industrial processing equipment, medical devices, military equipment, educational displays and consumer products.“Moving into the second quarter, we expect continued strong revenue growth and increased earnings. We also see more potential customers recognizing the competitive advantages of our EMS services based in North America. 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 2012, the Company expects to report revenue in the range of $75 million to $80 million, and earnings in the range of $0.15 to $0.20 per diluted share.