SPOKANE VALLEY, Wash., Oct. 29, 2013 (GLOBE NEWSWIRE) -- Key Tronic Corporation (Nasdaq:KTCC), a provider of electronic manufacturing services (EMS), today announced its results for the three months ended September 28, 2013. The Company's actual results were in line with its previous guidance.
For the first quarter of fiscal year 2014, Key Tronic reported total revenue of $78.0 million, compared to $97.5 million in the same period of fiscal year 2013. Net income for the first quarter of fiscal year 2014 was $1.7 million or $0.16 per diluted share, compared to $3.7 million or $0.35 per diluted share for the same period of fiscal year 2013. For the first quarter of fiscal year 2014, gross margin was 8.5% and operating margin was 3.2%, compared to 9.7% and 5.8%, respectively, in the same period of fiscal year 2013.
"As expected, our revenue and earnings were impacted by a significant reduction in orders from some of our large, longstanding customers in the first quarter of fiscal year 2014," said Craig Gates, President and Chief Executive Officer. "While our new programs typically take over 18 months to begin contributing revenue, we saw the continued ramp up of these new programs and increasing revenue diversification. As a result, we expect to see strong sequential growth during the second half of fiscal year 2014, as growing revenue from several new customers should offset and then exceed the revenue reductions in recent periods by certain large customers.""At the end of the first quarter of fiscal year 2014, we were generating revenue from 189 separate programs and had 57 distinct customers, up from 168 programs and 51 customers a year ago. We expect the increase in revenue generating programs and customers to reduce our revenue concentration. During the fourth quarter of the previous fiscal year, our largest customer contributed around 23% of our total revenue and our top three customers contributed around 61% of our total revenue. By the fourth quarter of fiscal year 2014, we expect our largest customer to be contributing around 15% of our total revenue and our top three customers to be contributing about 41% of total revenue."