SPOKANE VALLEY, WA -- Key Tronic's long quarterly profit streak will come to an end when it announces its quarterly results for the three months ended Sept. 27.

Lagging sales to a longtime customer and acquisition costs related to the purchase of Ayrshire Electronics stalled the EMS company's run in the black at 42 straight quarters.

In a statement, Key Tronic said it expects to report revenue of approximately $75 million for its fiscal 2015 first quarter, below previous guidance due to larger-than-anticipated drop in production for an undisclosed longstanding customer. 

The results do not include contributions of CDR Manufacturing (Ayrshire), which was acquired on Sept. 3. Including CDR's sales in September, the company expects to report revenue of approximately $86 million for the quarter.

In August Key Tronic had guided for $76 million to $82 million in revenue for the quarter, excluding sales from CDR. 

Key Tronic guided for fiscal second quarter revenue of $105 million to $115 million.

During the September quarter, Key Tronic had an unfavorable product mix that caused higher material costs and inefficiencies associated with ramping production of a new product in a shorter time period than originally planned that resulted in higher-than-expected operating expenses of approximately $1.8 million. Transaction and integration costs related to the CDR acquisition cost another $700,000, the firm said. 

"While the larger than anticipated revenue reduction by a certain customer and the unexpected operating costs in the first quarter were disappointing, we expect to see stronger sequential growth and a return to profitability in the second quarter of fiscal 2015 as our new programs continue to ramp up," said Craig Gates, president and chief executive. "Furthermore, our acquisition of CDR during the first quarter of fiscal 2015 is already making a significant contribution to our progress by expanding our printed circuit board assembly capabilities, our total revenue, and our customer base with the addition of new multinational companies."

The company plans to announce its complete results for the first quarter of fiscal 2015, and more specific guidance for the second quarter of fiscal 2015, on Nov. 4.

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