SPOKANE VALLEY, WA -- Key Tronic Corp. reported fiscal third quarter net income of $700,000, down from $4.4 million a year ago on product mix and program startups.

The electronic manufacturing services provider reported revenue rose 23% from last year to $63.4 million for the period ended April 2.

While the EMS firm's net income slipped due to higher material, freight and operational expenses, it was still the company's 29th straight quarter of profitability. Last year's results included a net deferred tax benefit of $2.2 million.

“We’re pleased with our strong year-over-year revenue growth for the third quarter and for the first nine months of fiscal 2011, driven primarily by the production ramp-ups of new programs,” said Craig Gates, president and chief executive, in a statement. “During the third quarter of fiscal 2011, the revenue contribution from those of our new programs that have been ramped was mostly offset by forecast reductions in some longstanding customer programs. At the same time, we have continued to diversify our future revenue base by winning new programs involving mobile device accessories, aerospace and household products.

Gates said the company sees increased demand in the forecasts from longstanding customers for the July quarter, and the firm expects its customer base to increase to 30 EMS customers, up from 20 in fiscal year 2010.” Key Tronic guided for revenue of $61 million to $65 million in the period. Last year it did $61.9 million in the July quarter.

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