Key Tronic's Revenue Falls, But Profit Streak Still Going PDF Print E-mail
Written by Mike Buetow   
Wednesday, 01 May 2013 09:50

SPOKANE VALLEY, WA -- Key Tronic today announced March quarter net profit of $2.9 million, down 14.7% from a year ago.

The electronics manufacturing services company declared fiscal third quarter revenue of $84.3 million, down 11.7% from March 2012.

For the first nine months of fiscal 2013, the EMS firm's total revenue is up 11% to $276.4 million, and net income is up 30% to $10.2 million.

For the quarter, gross margin was 9% and operating margin was 4%, compared to 9% and 5%, respectively, in 2012.

“After strong year-over-year growth in the first half, our revenue in the third quarter was primarily impacted by the anticipated and previously disclosed slowdown from the large customer that began to reduce production levels in the second quarter,” said Craig Gates, president and chief executive. “Although we saw a continued ramp up of our new programs in the third quarter, those increases did not yet offset the decreased demand from this one customer.

“We continue to see a robust pipeline of potential new business and have further diversified our future revenue base during the third quarter by winning new customer programs involving RFID, industrial power, LED lighting and commercial washroom equipment. At the end of the third quarter of fiscal 2013, we were generating revenue from 177 separate programs and had 56 distinct customers, up from 155 programs and 42 customers a year ago. While we expect our fourth quarter results to be similar to the third quarter, we currently anticipate renewed sequential growth during the coming fiscal year.”

Key Tronic guided for fiscal fourth quarter revenue of $83 million to $87 million.

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