Spokane
Valley, WA— August
21, 2007 -- Key Tronic Corporation
(Nasdaq: KTCC), a provider of electronic manufacturing services (EMS), today
announced its results for the quarter
and fiscal year
ended June 30, 2007.
For the fourth quarter of fiscal 2007, Key Tronic reported total revenue
of $49.2 million, compared to $47.2 million in the previous quarter and
$52.5 million in the fourth quarter of fiscal 2006. For fiscal year 2007,
total revenue was $201.7 million, up 7% from $187.7 million for fiscal 2006.
Net income for the fourth quarter of fiscal 2007 was $2.7 million or
$0.26 per diluted share, which included a benefit from the Company’s sale of
its former facility in Las Cruces, New Mexico, of approximately $1.5 million or
$0.14 per diluted share. This compares to $7.1 million or $0.71 per diluted
share for the fourth quarter of fiscal 2006, which included an income tax
benefit of approximately $5.0 million or $0.50 per diluted share.
For fiscal 2007, net income was $5.2 million or $0.51 per diluted share,
compared to $9.8 million or $1.00 per diluted share for fiscal 2006.
“During the year, we saw our new programs contributing a growing
portion of our revenue and we continued to win new business in a wide range of
industries,” said Jack Oehlke, President and Chief Executive Officer. “In
the fourth quarter, we won significant new customer programs involving data
storage devices, networking equipment, specialty printers, industrial
controllers and personal exercise equipment.
We expect these new programs to begin contributing revenue in the second
half of fiscal 2008.”
“During fiscal 2007, we continued to invest in our business,
strengthen our balance sheet and improve our asset utilization. We purchased a new building to consolidate and expand our
operations in Mexico, added a new SMT production facility in Spokane Valley and
completed the sale of our Las Cruces facility.
We are also pleased with our solid operational efficiency and
improvements in our inventory management.”
“Moving into fiscal 2008, we believe Key Tronic continues to
demonstrate its ability to provide a wide range of EMS services, involving
electrical and mechanical engineering, precision plastic molding, worldwide
logistics and more. As a result, we have become more competitive in pursuing
opportunities with both existing and new customers, while we continue to focus
on controlling costs and maintaining outstanding customer service.
We feel well positioned for profitable growth in fiscal 2008 and
beyond.”
Business Outlook
For the first quarter of fiscal 2008, the Company is seeing slower
demand from a number of customers. As
a result, the Company expects revenue in the range of $42 million to $45
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 800-218-0204 or +1 303-262-2130. A 48-hour replay
will be available by calling 800-405-2236 or +1 303-590-3000 (Reservation No.
11094043). 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.
