Key Tronic Corporation (Nasdaq:KTCC), a provider of electronic manufacturing services (EMS), today announced its results for the quarter ended October 1, 2011.
For the first quarter of fiscal 2012, Key Tronic reported total revenue of $69.8 million, up 10% from $63.3 million in the same period of fiscal 2011. Net income for the first quarter of fiscal 2012 was $1.2 million or $0.12 per diluted share, compared to $1.7 million or $0.17 per diluted share for the same period of fiscal 2011.
For the first quarter of fiscal 2012, gross margin was 7% and operating margin was 2%, compared to 9% and 4%, respectively, in the same period of fiscal 2011. As projected, gross margins were impacted this quarter by expenses associated with several steep new program ramps, as well as product mix changes. For the coming quarter, given its anticipated growth and product mix, the Company expects to see its gross margins in the range of 7% to 8%.
“We’re very pleased with our strong growth in revenue for the first quarter of fiscal 2012, driven by the production ramp up for new programs from both new and longstanding customers,” said Craig Gates, President and Chief Executive Officer, “During the quarter, we achieved the highest quarterly revenue in Key Tronic’s history and continued to diversify our future revenue base by winning new programs involving industrial processing equipment, medical devices, military equipment, educational displays and consumer products.
“Moving into the second quarter, we expect continued strong revenue growth and increased earnings. We also see more potential customers recognizing the competitive advantages of our EMS services based in North America. With our unique combination of world-class engineering, global logistics and cost-effective production, we’re increasingly well positioned to continue to capture market share and capitalize on emerging opportunities.”
For the second quarter of fiscal 2012, the Company expects to report revenue in the range of $75 million to $80 million, and earnings in the range of $0.15 to $0.20 per diluted share.
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 877-941-8609 or +1 480-629-9818. A 48-hour replay will be available by calling 800-406-7325 or +1 303 590 3030 (Access Code: 4476291). 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 2012. 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 availability of parts from the supply chain, 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.
|KEY TRONIC CORPORATION AND SUBSIDIARIES|
|CONSOLIDATED STATEMENTS OF INCOME|
|(In thousands, except per share amounts)|
|Three Months Ended|
|October 1,||October 2,|
|Cost of sales||64,756||57,370|
|Gross profit on sales||5,005||5,970|
|Research, development and engineering||956||914|
|Selling, general and administrative||2,434||2,432|
|Total operating expenses||3,390||3,346|
|Income before income taxes||1,512||2,552|
|Income tax provision||265||810|
|Earnings per share:|
|Earnings per common share - basic||$||0.12||$||0.17|
|Weighted average shares outstanding - basic||10,418||10,296|
|Earnings per common share - diluted||$||0.12||$||0.17|
|Weighted average shares outstanding - diluted||10,446||10,403|
|KEY TRONIC CORPORATION AND SUBSIDIARIES|
|CONSOLIDATED BALANCE SHEETS|
|October 1,||July 2,|
|Cash and cash equivalents||$||347||$||1,232|
|Deferred income tax asset||4,689||3,900|
|Total current assets||103,473||91,585|
|Property, plant and equipment - net||14,757||14,917|
|Deferred income tax asset||4,947||4,219|
|Total other assets||5,463||5,862|
|LIABILITIES AND SHAREHOLDERS' EQUITY|
|Accrued compensation and vacation||3,726||4,436|
|Current portion of other long-term obligations||771||761|
|Total current liabilities||40,172||33,278|
|Deferred income tax liability||1,040||1,542|
|Other long-term obligations||5,911||3,521|
|Total long-term liabilities||18,290||11,063|
|Common stock, no par value ( in thousands) - shares|
|authorized 25,000; issued and outstanding|
|10,447 and 10,399 shares, respectively||41,288||41,014|
|Accumulated other comprehensive (loss) income||(2,573||)||1,740|
|Total shareholders' equity||65,231||68,023|
|Total liabilities and shareholders' equity||$||123,693||$||112,364|
Chief Financial Officer
Ron Klawitter, 509-927-5295
Michael Newman, 206-729-3625
Nasdaq quotes delayed at least 15 minutes, all others at least 20 minutes.
Markets are closed on certain holidays. Stock Market Holiday List
By accessing this page, you agree to the following
Press Release Service provided by PRConnect.
Stock quotes supplied by Telekurs USA
Postage Rates Bots go here