SPOKANE VALLEY, WA – Key Tronic posted fiscal fourth quarter revenue of $117 million, down 1.3% year-over-year and up 8% sequentially.

Net income was approximately $1.3 million, flat with the prior-year quarter.

For fiscal year 2018 ended June 30, total revenue was $446.3 million, down 4.6% compared to fiscal 2017. Net income was $2.1 million, a decrease of 63%.

“For the fourth quarter of fiscal 2018, we saw increasing demand from a number of our longstanding customers, and most of our new programs, including Skybell Technologies, continued to ramp,” said Craig Gates, president and CEO. “We also continued to win significant new business from EMS competitors and from existing customers, including new programs involving medical devices, distribution services and electronic signage. At the same time, our productivity continued to be adversely impacted by industry-wide shortages in key components, resulting in delays in delivery and increased costs.

“While 2018 was a challenging year, we replaced the revenue shortfall caused by a large former customer, significantly diversified our customer base, reduced our debt by $8 million for the year and returned to strong sequential growth in the fourth quarter. Moving into the first quarter of fiscal year 2019, although we continue to face industry supply chain issues and increased uncertainty around the tariff situation, we expect growth in revenue and earnings. In preparation, we continue to invest in new equipment and processes to be more productive in our Mexico facilities, and we’re expanding and enhancing our profitable US facilities. We’re optimistic about our opportunities for growth in fiscal 2019 and beyond.”

For the fiscal first quarter of 2019, the company expects revenue in the range of $118 million to $122 million.

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