SPOKANE VALLEY, WA -- Key Tronic reported December quarter revenue jumped 46% year-over-year to $114.3 million, the result of the EMS firm's acquisition of Ayrshire Electronics.

Net income for the period was $1.6 million, versus $3.1 million last year, when the firm benefited from a $1.5 million gain due to a change in Mexican tax law.

Key Tronic said its fiscal second quarter 2015 revenue included approximately $39 million in sales from CDR Manufacturing (Ayrshire), which was acquired Sept. 3, 2014. 

For the quarter, gross margin was 8% and operating margin was 2%, up from 5% and (2%), respectively, sequentially.

"We're pleased to see our recent acquisition of Ayrshire continue to make significant contributions to our progress by expanding our capabilities, revenue and customer base," said Craig Gates, president and chief executive. "At the end of the second quarter of fiscal year 2015, we were generating revenue from 164 distinct customers, up from 57 customers a year ago.

"At the same time, we continue to see a robust pipeline of potential new business and have further diversified our future revenue base during the second quarter by winning new customer programs involving consumer products, commercial printers and gaming equipment. Moreover, Ayrshire customers continue to award us with additional business because of our combined capabilities and global logistics. Moving into the third quarter of fiscal year 2015, we expect to see increased operating efficiencies and profitability, as our new programs continue to grow and our product mix and margins return to normal patterns."

Key Tronic guided for fiscal third-quarter revenue of $108 million to $116 million.

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