SPOKANE VALLEY, WA – Key Tronic Corp. expects to report fiscal third quarter revenue of approximately $134.6 million, an increase of 20.7% year-over-year.

Customer demand remained strong for the quarter ended Apr. 3. New and existing customers increased their backlog. While component supply issues limited production, the fiscal third quarter was the best quarter in the company’s history for customer demand, which exceeded $150 million.

Lower than anticipated earnings are primarily a result of a tightening worldwide supply chain and transportation and logistics issues, which delayed the arrival of key components, causing both factory downtime and overtime expenses.

In addition, earnings in the fiscal third quarter were impacted by legal expenses related to a previously disclosed internal investigation, a temporary four-day closure of the firm’s Mexico facilities during a late winter storm that caused power disruptions in the region, and continued but lessening expenses related to Covid-19.

For the fiscal fourth quarter, Key Tronic expects to report revenue in the range of $130 million to $140 million, assuming continued recovery from the Covid-19 crisis, no worsening of key components supply for the company’s business, and additional legal and internal review expenses during the quarter.

The company says customer demand could exceed $150 million if component supply meets demand.

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