JASPER, IN – Kimball Electronics reported fiscal first quarter net sales of $292.7 million, a decrease of 11.8% year-over-year. Foreign currency had a favorable impact of 1% on net sales in the quarter compared to the same period a year ago.

Net income for the period ended Sept. 30 was $2.6 million, down 84.7% compared to the fiscal first quarter last year. Operating income was $4.8 million, a decrease of 73.2%.

“I am proud of our people, our company, and the results for the first quarter, considering the difficult operating environment caused by issues in the global supply chain,” said Donald D. Charron, chairman and CEO, Kimball Electronics. “Component shortages, which are impacting companies worldwide, continue to make it challenging to keep pace with strong market demand. We were disappointed by the lack of improvement in the overall situation in the September-ending quarter, when we were actually expecting some level of recovery. Conditions deteriorated in the period due to Covid-related restrictions in Malaysia and the worsening of the backlog in US West Coast ports.

“While these supply chain challenges had a more significant impact on absorption than anticipated, we are committed to retaining our experienced and talented workforce around the world as we see these disruptions as a short-term issue. As supply constraints ease, we are well positioned to ramp production on our record backlog and support our strong funnel of new product introductions. We are reiterating our guidance for fiscal 2022, although the bifurcation between the first and second halves will be more pronounced.”

Cash flow used for operating activities was $8.2 million during the fiscal first quarter. Investments in capital expenditures were $12.7 million. Cash and cash equivalents were $89.3 million, and borrowings outstanding on credit facilities were $72.6 million at Sept. 30, including $40 million classified as long-term.

For fiscal 2022, the company expects net sales in the range of $1.4 billion to $1.5 billion.

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