SPOKANE VALLEY, WA -- Key Tronic announced fourth quarter fiscal year 2017 revenue of $118.5 million, down 4.4% from a year ago.

The electronics manufacturing services provider said net income for the fourth quarter was $1.3 million, compared to $2.1 million in 2016. Gross margin was 8.3% and operating margin was 2%, compared to 8.7% and 2.8%, respectively. The results include approximately $3.2 million in revenue for shipped excess inventory for a prior customer at cost, which had no contribution to margins.

For the fiscal year 2017 ended Jul. 1, total revenue was $467.8 million, compared to $485 million for fiscal year 2016. Net income was $5.6 million, down 13.9%.

“During fiscal 2017, our revenue and margins were impacted by declining demand from some longstanding customers, which was not yet offset by the continued ramp up in revenue from our new programs,” said Craig Gates, President and Chief Executive Officer. “While the EMS business is very competitive, we continued to win new business during the year, including two new programs involving gaming and seismic monitoring devices awarded in the fourth quarter, bringing the total number of significant program wins to nine for the fiscal year.”

“Throughout fiscal 2017, we made significant investments in improving our customer support organization and expanding our SMT, sheet metal and plastic molding capabilities in preparation for future growth. Moving into fiscal 2018, we continue to see a strong pipeline of potential new business and our new programs continue to ramp. We believe we’re well positioned to see growth in revenue and increasing profitability in the second half of fiscal 2018.”

The company expects fiscal first quarter revenue in the range of $110 million to $115 million.

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