SPOKANE VALLEY, WA -- Key Tronic announced fiscal fourth-quarter revenue jumped 67% to $120.4 million, boosted by its 2014 acquisition of Ayrshire Electronics.

Net income for the period ended June 27 was $2.3 million, up from $1.4 million in 2014. The results included tax credits of $500,000 for research and development activities.

The electronics manufacturing services provider's results were inline with previous company guidance. The quarterly results included approximately $37 million in revenue from Ayrshire, which was acquired on Sept. 3, 2014.

For full year fiscal year 2015, total revenue was $434 million, up 42% from 2014. For the full year of fiscal year 2015, net income was $4.3 million, compared to $7.6 million last year. Key Tronic's five largest customers represented 42% of total revenue, compared to 62% in the prior year.

Gross margin was 9% and operating margin was 3% for the quarter, comparable to a year ago. For the year, gross margin was 8% and operating margin was 2%, down from 9% and 3%, respectively, in fiscal 2014.

"Over the longer term we expect our gross margin to gradually improve and move in the 9% to 10% range and expect increasing operating margin," Key Tronic said.

"During fiscal 2015, despite slowdowns by some longstanding customers, we made significant progress ramping up new programs, expanding our customer base and extending our worldwide capabilities," said Craig Gates, president and chief executive. "The major event of the year was our acquisition and successful integration of Ayrshire Electronics, which significantly increased our combined annual revenue and more than doubled our number of customers, giving us a much stronger and more diverse foundation for growth.

"We're especially encouraged to see Ayrshire customers continue to award us with additional business because of our combined capabilities and global manufacturing footprint. At the same time, we have continued to penetrate into an even wider range of industries. In the fourth quarter, we won new programs involving home building products, material handling systems and lighting equipment."

Key Tronic guided for first quarter fiscal 2016 revenue in the range of $122 million to $130 million. "As our new programs move into production and ramp up, we expect to see increasing revenue and earnings. Moreover, we continue to win new business, driven by the growing demand for our North American-based production, unique global structure, customer responsiveness, vertical integration and engineering capabilities."

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