SPOKANE VALLEY, WA -- Key Tronic Corp.'s fiscal fourth-quarter net income jumped to $2.3 million, up from $300,000 in the year-ago quarter, the 26th straight quarter of profitability.

For the quarter ended July 3, the electronics manufacturing services provider reported record revenue of $61.9 million, up 20% from the previous quarter and 36% year-over-year. Gross margin was 11% and operating margin was 5%, up from 6% and 1%, respectively, in 2009. Industry-wide shortages in components delayed about $4 million in orders.

During the quarter, the contract assembler won a new program involving gaming technology and two new programs for industrial safety equipment. It significantly expanded its production capacity in Mexico and China during the quarter.

For fiscal 2010, total revenue was $199.6 million, up 8% from $184.9 million for fiscal 2009. Net income was $8.7 million, up 691%. Gross margin was 10% and operating margin was 4%, up from 7% and 1%, respectively, in 2009.

“We’re very pleased with our strong growth in revenue and earnings for fiscal 2010, driven by increased demand from both new and longstanding customers,” said Craig Gates, president and chief executive. “We began the year in the depths of the global recession and ended with the highest quarterly revenue in Key Tronic’s history."

He guided for first-quarter fiscal 2011 revenue of $58 million to $61 million.

Key Tronic was named CIRCUITS ASSEMBLY's EMS Company of the Year in 2009.

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