Continued Expansion and Diversification of Customer Base
Spokane Valley, WA— August 19, 2008 -- Key Tronic Corporation (Nasdaq: KTCC), a provider of electronic manufacturing services (EMS), today announced its results for the fourth quarter and year ended June 28, 2008.
For the fourth quarter of fiscal 2008, Key Tronic reported total revenue
of $57.3 million, up 17% from $49.2 million in the same period of fiscal 2007.
For fiscal 2008, total revenue was $204.1 million, up from $201.7 million
for fiscal 2007.
Net income for the fourth quarter of fiscal 2008 was $2.6 million or
$0.25 per diluted share, compared to $2.7 million or $0.26 per diluted share for
the same period of fiscal 2007. Results
for the fourth quarter of fiscal 2007 included the benefit of approximately $1.5
million or $0.14 per diluted share from the sale of a facility.
For fiscal 2008, net income was $5.6 million or $0.54 per diluted share,
up 7% from $5.2 million or $0.51 per diluted share for fiscal 2007.
“We are pleased with our performance for the fourth quarter and for
the year,” said Jack Oehlke, President and Chief Executive Officer. “Our
year-over-year revenue growth was driven by increased demand from new customer
programs, which continue to ramp up. For
the fourth quarter and for the year, we achieved the highest revenue since
implementing our EMS strategy. In
the fourth quarter, we saw very strong year-over-year revenue growth and the
strongest gross margins we’ve seen in many years.
“During the fourth quarter, we continued to diversify our customer
portfolio across a wide range of industries, winning new customers involved in
telecommunications, industrial equipment, fuel cell technology and consumer
products. During the year, we had 8
new customers contributing about 13% of our total revenue. In fiscal 2009, we
expect 10 additional new customers to come on line. Together, we expect these 18 new customers to contribute
approximately 40% of our revenue in fiscal 2009, offsetting the anticipated
decline in demand from some of our existing customers.
“While the industry confronts the challenging economic environment, our sustained investment in our world-class facilities in Mexico provides us with strong competitive advantages in a time of rising labor, fuel and transportation costs. We believe Key Tronic is increasingly well-positioned to pursue and win new opportunities for profitable growth in fiscal 2009 and beyond.”
Business Outlook
For the first quarter of fiscal 2009, the Company expects revenue in the range of $45 million to $48 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 +1 303-262-2137. A 48-hour replay will be available by calling 800-405-2236
or +1 303-590-3000 (Reservation No. 11116514). 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 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.
