Spokane Valley,
WA— October 28, 2008 -- Key Tronic Corporation
(Nasdaq: KTCC), a provider of electronic manufacturing services (EMS), today
announced its results for the quarter ended September 27, 2008.
For the first quarter of fiscal 2009, Key Tronic
reported total revenue of $48.2 million, up 8% from $44.6 million in the same
period of fiscal 2008. Net income
for the first quarter of fiscal 2009 was $0.4 million or $0.04 per diluted
share, up from $0.2 million or $0.02 diluted share for the same period of fiscal
2008.
“We are pleased with our performance for the first
quarter, despite the challenging economic situation,” said Jack Oehlke,
President and Chief Executive Officer. “As expected, we saw an increased
contribution from new customer programs, offsetting the anticipated decline in
some of our existing programs.
“As we move into the second quarter, the global
economic situation is creating uncertainty and slowdowns among some of our
customers. While most of our
promising new customer programs continue to move into production and ramp up,
some have reduced their forecasts for coming periods.
Revenue from our new programs is now expected to grow at a slower rate
than previously anticipated. In
response, our flexible business model allows us to take immediate steps to
reduce operating expenses in our manufacturing facilities.
“In the face of the challenging economic
environment, we continue to believe that our sustained investment in our
world-class facilities provides us with strong competitive advantages.
Over the longer term, we expect to continue to successfully win new
business and further diversify our customer portfolio across a wide range of
industries.”
Bu
For
the second quarter of fiscal 2009, the Company expects revenue in the range of
$42 million to $45 million, with earnings in the range of breakeven to $0.02 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 800-219-6110 or +1 303-262-2138. A
48-hour replay will be available by calling 800-405-2236 or +1 303-590-3000
(Reservation No. 11120242). 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 2009.
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 future of the global economic
environment and its impact on our customers and suppliers, 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.
