SPOKANE VALLEY, WA – Key Tronic reported fiscal second quarter revenue of $123 million, up 10% year-over-year.
Net income for the quarter ended Dec. 29 was $1.6 million, compared to a net loss of $200,000 for the same period of fiscal year 2018.
For the first six months of fiscal 2019, revenue was $250.5 million, up 13% year-over-year. Net income was $3.2 million, up from $200,000 for the same period of fiscal year 2018.
“For the second quarter of fiscal 2019, our new programs continued to ramp, driving growing revenue, improving margins and increased profitability,” said Craig Gates, president and CEO. “Despite the continued industry-wide shortages for key components, we have made the necessary adjustments for adequate lead-times across our supply chain and have brought inventory levels more in line with revenue levels.
“During the quarter, we continued to win new business from EMS competitors, including new programs involving industrial cleaning equipment, express delivery services and industrial monitoring systems. We believe the tariffs on production in China have made our North American-based production more appealing to potential new customers. Moreover, our plans to add additional capacity in Vietnam will significantly reduce production costs, diversify our global manufacturing base and provide an additional hedge against uncertainty in a lingering or future trade war with China.”
For the fiscal third quarter of 2019, the company expects revenue in the range of $120 million to $125 million.