Spokane, WA— May 1, 2007 -- Key Tronic Corporation
(Nasdaq: KTCC), a provider of electronic manufacturing services (EMS), today
announced its results for the quarter ended March 31, 2007.
For the third quarter of fiscal 2007, Key Tronic reported total revenue
of $47.2 million, up 4% from $45.6 million in the third quarter of fiscal 2006.
For the first nine months of fiscal 2007, total revenue was $152.6 million, up
13% from $135.2 million in the same period of fiscal 2006.
Net income for the third quarter of fiscal 2007 was $0.7 million or
$0.07 per diluted share, compared to $0.9 million or $0.09 per diluted share for
the third quarter of fiscal 2006. For
the first nine months of fiscal 2007, net income was $2.5 million or $0.24 per
diluted share, compared to $2.6 million or $0.26 per diluted share in the same
period of fiscal 2006.
“Two new customer programs, which went into initial production in the
second quarter of 2007, continued to ramp up, adding $3 million to our revenue
during the third quarter,” said Jack Oehlke, President and Chief Executive
Officer. “In the fourth quarter, we expect to start production on four
additional new programs.”
“We continue to actively pursue promising and larger opportunities
with both existing and new customers. In
preparation for future growth, our new SMT production facility at our Spokane
Valley headquarters is now operational and will provide rapid response, new
product introduction process, prototype production, low-volume and highly
specialized PCB assembly for programs that require domestic sourcing. In
addition, we currently expect to complete the pending sale of our facility in
Las Cruces, New Mexico by the end of fourth quarter.”
Business Outlook
In the fourth quarter of fiscal 2007, the Company expects revenue in the
range of $45 million to $49 million, with earnings in the range of $0.07 to
$0.11 per share, excluding the anticipated gain from the sale of the Las Cruces
facility. Assuming the transaction is completed, it is expected to contribute
approximately $2.7 million of cash, net of related transaction expenses.
Conference
Call
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 filings.
