SPOKANE VALLEY, WA -- Key Tronic today announced preliminary fiscal 2016 first quarter revenue of approximately $126 million, in line with previous guidance.

For the three months ended Sept. 26, the electronics manufacturing services provider said net earnings would be lower than expected due to $2 million of unanticipated expenses and impact on gross margin related the cancellation of an order from a longstanding customer.

Key Tronic said the undisclosed customer requested a "significant and immediate increase" in production volumes for a new program at the start of the quarter and then later "abruptly cancelled those orders."

“While the sudden and unanticipated earnings impact from the unusual volatility in demand of a certain customer in the past quarter was disappointing, we expect to see an increase in earnings in the second quarter, as new programs continue to ramp and we continue to diversify our customer base,” said Craig Gates, president and chief executive.

The company plans to announce its complete results for the first quarter of fiscal 2016, and more specific guidance for the second quarter of fiscal 2016, on Oct. 27.

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