Key Tronic Corporation Announces Results For The First Quarter Of Fiscal Year 2017

Continued New Customer Wins; Investing for Growth in Coming Quarters

SPOKANE VALLEY, Wash., Nov. 01, 2016 (GLOBE NEWSWIRE) -- Key Tronic Corporation (Nasdaq:KTCC), a provider of electronic manufacturing services (EMS), today announced its results for the quarter ended October 1, 2016.

For the first quarter of fiscal year 2017, Key Tronic reported total revenue of $117.1 million, compared to $126.2 million in the same period of fiscal year 2016. Net income for the first quarter of fiscal year 2017 was $1.8 million or $0.16 per share, compared to $0.8 million or $0.07 per share for the first quarter of fiscal year 2016.

For the first quarter of fiscal year 2017, gross margin was 8.3% and operating margin was 2.4%, compared to 7.1% and 1.4%, respectively, in the same period of fiscal 2016.

"While we saw a slight slowdown in demand from several customers during the first quarter of fiscal year 2017, new programs continue to ramp and we are excited about our customer diversification and future prospects," said Craig Gates, President and Chief Executive Officer. "We saw year-over-year improvements in margins as we continue to replace the high risk revenue that was associated with the longstanding customer discussed in previous quarters. We have now fully exited that relationship."

"We continue to see a robust pipeline of potential new business and won new programs during the first quarter involving transportation logistics, medical and personal safety products. We are also encouraged by the strong prospects for new business involving our USA plants that we acquired in the Ayrshire acquisition. In coming periods we expect to see revenue growth in our USA plants as we complete their integration in the latter half of fiscal 2017. We plan to continue to invest in expanding our SMT, sheet metal and plastic molding capabilities while continuing to decrease our inventory levels to be more in line with revenues."

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