SPOKANE VALLEY, WA -- Key Tronic reported fiscal fourth quarter revenue of $123.9 million, up 3% from a year ago.

For the period ended July 2, the electronics manufacturing services said net income was $2.1 million, down from $2.3 million last year.

For fiscal year 2016, total revenue was $485 million, up 12% from a year ago, and net income climbed 52% to $6.5 million.

The company reported sequential improvement in operating efficiencies. Gross margin was 8.7% during the fourth quarter, up from 8.4%, and operating margin climbed to 2.8% from 2.3% in March.

“We’re pleased with how our business rebounded from several unusual challenges in the first two quarters and finished with strong revenue and earnings growth for fiscal year 2016,” said Craig Gates, president and chief executive. “The continued ramp of new programs and our investment in improving our operations to accommodate a more diversified customer base drove the overall improvement in fiscal 2016. At the same time, we won a number of new significant programs throughout the year, including new programs involving home automation and industrial metering in the fourth quarter.”

Gates said the company expects lower sales in the September quarter due to a plant closing and loss of a longtime customer,

“In the first quarter, we expect to see a slight decline in revenue due to the closure of our Kentucky facility and our decision to disengage completely from the longstanding customer that adversely impacted our business throughout the year. While impacting our topline revenue, we anticipate improvements in margins in the first quarter as the remaining Kentucky programs are transferred to other facilities and cost savings begin to be realized. We expect our many new programs will continue to ramp up, the continued onboarding of several new customers and see a robust pipeline of potential new business. Moving into fiscal 2017, we feel encouraged by our growth opportunities, the improvements in our operating efficiencies and our competitive strengths.”

Key Tronic guided for fiscal first quarter revenue in the range of $117 million to $122 million.

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