SPOKANE VALLEY, WA – Key Tronic reported fiscal first quarter revenue of approximately $132.8 million, up 8% from the same period of fiscal 2021.

While demand remains strong from both new and existing customers, revenue for the fiscal first quarter continued to be significantly constrained by challenges related to the global materials supply chain, transportation, logistics and the pandemic.

For the quarter ended Oct. 2, net income was $800,000, down 52.9% year-over-year. Earnings were impacted by legal and other professional service expenses related to the previously disclosed internal investigation of approximately $400,000.

The global supply chain, pandemic and transportation issues continued to disrupt production during the quarter. Intermittent parts supply required both factory downtime and overtime expenses, which had an adverse impact on the company’s margins and earnings.

“We’re pleased with the strong customer demand during the first quarter of fiscal 2022 and our successful launch of major new programs in spite of continued headwinds from worldwide component shortages, transportation bottlenecks and the global pandemic,” said Craig Gates, president and CEO. “During the first quarter of fiscal 2022, we won new programs involving industrial testing equipment, medical diagnostic products, and pharmaceutical water treatment.

“Moving further into fiscal 2022, component shortages, logistic delays and the Covid-19 crisis continue to present multiple business challenges, but we continue to see the favorable trend of contract manufacturing returning to North America. With our recent investments in new capacity in both North America and Vietnam, we’re well-prepared for long-term growth when supply chains improve.”

For the fiscal second quarter, Key Tronic expects revenue in the range of $125 million to $135 million.

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