SPOKANE VALLEY, WA – Key Tronic reported fiscal second quarter revenue of $128.3 million, up 10% year-over-year.

Net income for the fiscal second quarter was $1.6 million, up 100% year-over-year.

The revenue increase for the quarter ended Dec. 26 is a result of a successful ramp of new customer programs and increased demand from existing customers. At the same time, the company’s revenue continued to be constrained by government imposed shutdowns and labor shortages at its facilities in Juarez because of the Covid-19 pandemic and associated public health measures.

During the period, Key Tronic incurred additional costs caused by the Covid-19 crisis totaling approximately $1.8 million.

“We’re pleased with the successful ramp of new programs and our strong revenue growth in the second quarter of fiscal 2021, despite the continued headwinds from Covid-19,” said Craig Gates, president and CEO. “During the second quarter of fiscal 2021, we continued to see the favorable trend of contract manufacturing returning to North America and won new programs involving security and home automation and industrial products.”

For the first six months of fiscal 2021, revenue was $251.5 million, up 13% compared to the same period of fiscal 2020. Net income was $3.3 million, up 37.5%.

“Moving into the third quarter of fiscal 2021, we expect continued revenue and earnings growth. Nevertheless, the Covid-19 crisis continues to present macroeconomic uncertainty and multiple business challenges, including industry-wide electronic component shortages, workforce disruptions and higher labor costs. As we endeavor to mitigate these issues and continue to invest in new capacity to prepare for long-term growth, we remain committed to protecting the health of all of our employees.”

For the fiscal third quarter, Key Tronic expects revenue of approximately $130 million to $140 million.

Key Tronic is working closely with its customers, key suppliers and employees to minimize the impact of the continued global pandemic. While the company’s facilities in the US, Mexico, China and Vietnam are currently operating and following current health guidelines, uncertainty as to the possibility of future temporary closures, customer demand and costs, and future supply chain disruptions during the rapidly changing environment could significantly impact operations in coming periods. Due to heightened risks, the firm may issue updated guidance during the upcoming quarter.