Spokane, WA— October 31, 2006 -- Key Tronic Corporation
(Nasdaq: KTCC), a provider of electronic manufacturing services (EMS), today
announced its results for the quarter ended September 30, 2006.
For the first quarter of fiscal 2007, Key Tronic reported total revenue
of $55.5 million, up 25% from $44.3 million in the first quarter of fiscal 2006.
Net income for the first quarter of fiscal 2007 was $1.4 million or $0.14 per
diluted share, up 100% from $0.7 million or $0.07 per diluted share for the
first quarter of fiscal 2006.
For the first quarter of fiscal 2007, the Company’s gross margin was
9.5%, up from 8.7% for the first quarter of fiscal 2006.
The increase reflects improved production efficiencies from higher
factory utilization. Results for
the first quarter of fiscal 2007 included a charge of approximately $0.5
million, or $0.05 per diluted share, related to due diligence costs and expenses
incurred in connection with a potential acquisition that the Company decided not
to complete.
“During the first quarter of 2007, we saw revenue growth from most of
our customers and we were pleased with our improved operating efficiencies and
profitability,” said Jack Oehlke, President and Chief Executive Officer.
“At the same time, we have expanded our production capacity and support
infrastructure in preparation for programs coming on line.
We are currently completing our due diligence on the potential purchase
of an additional building in Juarez which will replace a leased building.”
Business
Outlook
In the second
quarter of fiscal 2007, the Company expects lower demand from certain existing
customers, partially offset by increased revenue from new programs.
As a result, revenue is anticipated to be in the range of $50 million to
$52 million. Earnings in the second
quarter of fiscal 2007 are expected to be in the range of $0.11 to $0.13 per
share.
Conference
Call
Key Tronic
will host a conference call today to discuss its financial results at 2:00 PM
Pacific (5:00 PM Eastern). A broadcast of the conference call will be available
at www.keytronic.com
under “Investor Relations” or by calling 800-218-8862 or +1 303-262-2125. A
48-hour replay will be available by calling 800-405-2236 or +1 303-590-3000
(Reservation No. 11071948). A replay will also be available on the Company’s
Web site.
About Key
Tronic
Key Tronic is a leading contract manufacturer offering value-added design and manufacturing services from its facilities in the United States, Mexico and China. The Company provides its customers full engineering services, materials management, worldwide manufacturing facilities, assembly services, in-house testing, and worldwide distribution. Its customers include some of the world's leading original equipment manufacturers. For more information about Key Tronic visit: www.keytronic.com.
Some
of the statements in this press release are forward-looking statements within
the meaning of the Private Securities Litigation Reform Act of 1995.
Forward-looking statements include all passages containing verbs such as
‘aims, anticipates, believes, estimates, expects, hopes, intends, plans,
predicts, projects or targets’ or nouns corresponding to such verbs.
Forward-looking statements also include other passages that are primarily
relevant to expected future events or that can only be fully evaluated by events
that will occur in the future. Forward-looking statements in this release
include, without limitation, the Company’s statements regarding its
expectations with respect to quarterly revenue and earnings during fiscal 2007.
There are many factors, risks and uncertainties that could cause actual results
to differ materially from those predicted or projected in forward-looking
statements, including but not limited to the accuracy of customers’ forecasts;
success of customers’ programs; timing of new programs; success of new-product
introductions; acquisitions or divestitures of operations or facilities;
technology advances; changes in pricing policies by the Company, its
competitors, customers or suppliers; and the other risks and uncertainties
detailed from time to time in the Company’s SEC filing.
