Spokane Valley,
WA— August 18, 2009 -- Key Tronic Corporation
(Nasdaq: KTCC), a provider of electronic manufacturing services (EMS), today
announced its results for the quarter and year ended June 27, 2009.
For the fourth quarter of fiscal 2009, Key Tronic
reported total revenue of $45.5 million, compared to $57.3 million in the same
period of fiscal 2008. For the full
year of fiscal 2009, total revenue was $184.9 million, compared to $204.1
million for fiscal 2008.
Net income for the fourth quarter of fiscal 2009 was
$0.3 million or $0.03 per diluted share, compared to $2.6 million or $0.25 per
diluted share for the same period of fiscal 2008. Results for the fourth quarter of fiscal 2009 included
charges of approximately $0.7 million or $0.07 per diluted share for severance
charges related to cost reduction efforts. For the full year of fiscal 2009, net
income was $1.1 million or $0.11 per diluted share, compared to $5.6 million or
$0.54 per diluted share for fiscal 2008.
“We successfully confronted the challenging global
economic environment in the second half of fiscal 2009 by reducing our costs
while ramping up our new customer programs, which allowed us to maintain our
profitability and strengthen our balance sheet,” said Craig Gates, President
and Chief Executive Officer. “Despite the current economic uncertainty, our
strong financial position and string of 22 consecutive profitable quarters have
helped us to win additional new programs and further diversify our customer
portfolio across a wide range of industries.
During the fourth quarter, we won new programs involving gaming
technology, consumer medical devices, computer networking and HVAC control
systems.
“As we move into fiscal 2010, we continue to focus
on controlling operating expense and on leveraging the synergistic capabilities
of our world-class facilities in Mexico, China and the US.
We’re also taking steps to further increase the efficiency of our
supply chain and new product introduction processes. Given our competitive
advantages and the growing need for some potential customers to move forward
with their outsourcing strategies, we’re strongly positioned to win new
business in coming periods and grow our revenue and profits as the economy
rebounds.”
Business Outlook
For
the first quarter of fiscal 2010, the Company expects revenue in the range of
$41 million to $44 million, with earnings in the range of $0.01 to $0.03 per
share. In addition, the Company has a commitment letter from a bank for a new
line of credit agreement which it expects to sign before August 22, 2009
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 800-762-8779 or +1 480-629-9770. A
48-hour replay will be available by calling 800-406-7325 or +1 303 590 3030
(Access Code: 4099852). 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 2010.
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.
