Spokane Valley, WA— January 31, 2008 -- Key Tronic Corporation
(Nasdaq: KTCC), a provider of electronic manufacturing services (EMS), today
announced its results for the quarter ended December 29, 2007.
For the second quarter of fiscal 2008, Key Tronic reported total revenue
of $50.8 million, up 14% from $44.6 million in the previous quarter and up 2%
from $49.8 million in the same period of fiscal 2007.
For the first six months of fiscal 2008, total revenue was $95.4 million,
compared to $105.3 million in the same period of fiscal 2007.
Net income for the second quarter of fiscal 2008 was $1.6 million or
$0.16 per diluted share, up from $0.3 million or $0.03 per diluted share for the
same period of fiscal 2007. The
results for the second quarter of fiscal 2008 included a gain of approximately
$951,000 or $0.09 per diluted share, representing the balance of payments
from the Company’s previously announced sale of its former facility in Las
Cruces, New Mexico. For the first six months of fiscal 2008, net income was $1.8
million or $0.18 per diluted share, compared to $1.8 million or $0.17 per
diluted share for the same period of fiscal 2007.
“We are pleased with our
strong sequential growth in revenue and earnings in the second quarter, driven
by increased demand from both new and established customer programs,” said
Jack Oehlke, President and Chief Executive Officer. “Accelerated customer
demand in December caused our revenue to actually exceed expectations. Though we
succeeded in fulfilling our customers’ needs, our gross margins were adversely
impacted due to overtime and expedite costs.
In the second half of fiscal 2008, we expect increased revenue and
earnings, as well as some improvement in our gross margins.”
“We expect over 10 new customer programs to be generating revenue by
the end of the fiscal year. Our
more diversified customer portfolio, spanning a wide range of industries,
represents the cornerstone of our long-term strategic plan. We are pleased with our progress and excited about our
potential for profitable growth.”
Business Outlook
For
the third quarter of fiscal 2008, the Company expects revenue in the range of
$49 million to $51 million, with earnings in the range of $0.05 to $0.08 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 +1 303-262-2140. A 48-hour replay
will be available by calling 800-405-2236 or +1 303-590-3000 (Reservation No.
11105040). 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 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.
