Spokane Valley,
WA— April 28, 2009 -- Key Tronic Corporation
(Nasdaq: KTCC), a provider of electronic manufacturing services (EMS), today
announced its results for the quarter ended March 28, 2009.
For the third quarter of fiscal 2009, Key Tronic
reported total revenue of $44.2 million, compared to $51.5 million in the same
period of fiscal 2008. For the
first nine months of fiscal 2009, total revenue was $139.5 million, compared to
$146.8 million in the same period of fiscal 2008.
Net income for the third quarter of fiscal 2009 was
$0.3 million or $0.03 per diluted share, compared to $1.2 million or $0.11 per
diluted share for the same period of fiscal 2008. For the first nine months of
fiscal 2009, net income was $0.8 million or $0.08 per diluted share, compared to
$3.0 million or $0.29 per diluted share for the same period in fiscal 2008.
Results for the third quarter of fiscal 2009 included
charges of approximately $0.5 million or $0.05 per diluted share for increased
reserves on a doubtful foreign receivable and approximately $0.2 million or
$0.02 per diluted share for severance charges related to cost reduction efforts.
“With the challenging global economic environment,
we continue to focus on reducing our costs and maintaining our operating
efficiency and profitability,” said Craig Gates, President and Chief Executive
Officer. “We are pleased that our operating performance for the third quarter
was in line with our forecasts. While
we have maintained our existing customer base, we continue to see slowdowns in
orders among those programs. Although
the revenue growth from many of our new programs has also been slowed due to the
recession, all of those new programs continue to move forward.
“We continue to add to our pipeline of prospective
new programs despite the challenging economy.
During the third quarter, we won several new programs involving military
electronics, computer networking and telecommunications. Our world-class
facilities and unique set of capabilities continue to give us strong competitive
advantages. In coming periods, we expect to win new business and further
diversify our customer portfolio across a wide range of industries.”
Business Outlook
For
the fourth quarter of fiscal 2009, the Company expects revenue in the range of
$40 million to $43 million, with earnings in the range of breakeven to $0.02 per
share.
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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.
