Spokane Valley, WA— October 30, 2007 -- Key Tronic Corporation
(Nasdaq: KTCC), a provider of electronic manufacturing services (EMS), today
announced its results for the quarter ended September 29, 2007.
For the first quarter of fiscal 2008, Key Tronic reported total revenue
of $44.6 million, compared to $55.5 million in the same period of fiscal 2007.
Net income for the first quarter of fiscal 2008 was $0.2 million or $0.02
per diluted share, compared to $1.4 million or $0.14 per diluted share for the
same period of fiscal 2007.
“As anticipated, we saw slower demand from a number of our established
customers in the first quarter of fiscal 2008, while our new programs
contributed a growing portion of our revenue,” said Jack Oehlke, President and
Chief Executive Officer. “We expect both our established customers and our new
customer programs to drive strong revenue and earnings growth in the second half
of fiscal 2008.”
“By the end of the fiscal year, we expect to have over 10 new customer
programs generating significant revenue streams. We anticipate having a more diversified customer portfolio
and a less concentrated revenue base, spanning a wider range of industries.
As we continue to execute our long-term strategic plan, we believe Key
Tronic is successfully expanding its market presence and becoming more
competitive in pursuit of new business as well as maintaining strong
relationships with our established customers. We are excited about our progress
and our potential for profitable growth in coming periods.”
Business
Outlook
For
the second quarter of fiscal 2008, the Company expects revenue in the range of
$45 million to $48 million, with earnings in the range of $0.03 to $0.06 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 800-218-0713 or +1 303-262-2211. A 48-hour replay
will be available by calling 800-405-2236 or +1 303-590-3000 (Reservation No.
11098605). A replay will also be available on the Company’s Web site.
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 2008.
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 filings.
