Spokane Valley,
WA— October 27, 2009 -- Key Tronic Corporation
(Nasdaq: KTCC), a provider of electronic manufacturing services (EMS), today
announced its results for the quarter ended September 26, 2009.
For the first quarter of fiscal 2010, Key Tronic
reported total revenue of $41.3 million, compared to $48.2 million in the same
period of fiscal 2009. Net income
for the first quarter of fiscal 2010 was $0.3 million or $0.03 per diluted
share, compared to $0.4 million or $0.04 per diluted share for the same period
of fiscal 2009. As of the end of
the first quarter, the Company had paid down all debt.
As previously announced during the first quarter, the Company entered
into a credit agreement with Wells Fargo Bank, N.A., which provides a $20
million revolving credit facility available to fund working capital needs as the
Company grows.
“In the first quarter of fiscal 2010, we continued
to successfully meet the challenges of the global recession by reducing our
costs while ramping up our new customer programs and further diversifying our
customer portfolio across a wide range of industries,” said Craig Gates,
President and Chief Executive Officer. “Despite the macro-economic
uncertainty, we remain strongly positioned to win new business and currently
expect to see growth in the second half of the year, driven by increased
production levels of our new programs for both new and longstanding customers.
“Our strong financial position and 23 quarters of
consecutive profitability continue to help us to win new programs even in this
current recession. During the first
quarter, we won new programs involving specialty printers and data storage
systems. At the same time, we
continue to focus on controlling operating expense, down 17% from the first
quarter of fiscal 2009. We’ve
also taken important steps to further strengthen the capabilities of our
world-class facilities in Mexico, China and the US, as well as the efficiency of
our supply chain and new product introduction processes.”
Business Outlook
For
the second quarter of fiscal 2010, the Company expects revenue in the range of
$38 million to $43 million, with earnings in the range of $0.02 to $0.05 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 877-941-9205 or +1 480-629-9835. A 48-hour replay will be available by calling 800-406-7325 or +1 303 590 3030 (Access Code: 4167953). 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.
