JASPER, IN -- Kimball Electronics today announced net sales of $315.3 million for the second quarter ended Dec. 31, down 1.7% from a year ago.

Operating income was $6.9 million, down from $16.2 million the previous year, while non-GAAP income fell to $7.3 million from $17 million.

Net income dropped to $5.1 million from $15 million the previous year.

"Q2 was another hard-fought quarter for our company, as global supply chain issues stemming from the COVID-19 pandemic persisted and adversely impacted our results," said Donald D. Charron, chairman and chief executive, Kimball. "Component shortages continued to make it extremely challenging to obtain the materials needed to support customer demand. While conditions improved modestly in December with sales accelerating, the lost absorption was significant once again this quarter, as we remained committed to retaining our highly skilled workforce in anticipation of a strong second half to the fiscal year. We continue to be well-positioned with record levels of backlog, and we are reiterating our sales guidance for fiscal 2022, although we expect to finish the year at the lower end of the range. We are revising our operating income margin guidance to reflect the difficult first half and our outlook for the balance of the fiscal year."

Charron also announced plans to expand the EMS company's facility in Poznan, Poland, the firm's third facility expansion in the past 15 months. "We expect the expansion in Poznan to add approximately 40% to existing production square footage, and will leverage our team in Poland to support our customers based in Europe when the expansion is complete in early fiscal 2024."

Kimball has also expanded in Thailand and Mexico in the past year-plus.

The company reiterated its guidance for fiscal year 2022 with net sales in the range of $1.4 billion to $1.5 billion, an 8% to 16% increase year-over-year, although the final result is expected to be at the lower end of the range. Operating income is estimated to be 3.75% to 4.25% of net sales, compared to the original guidance of 4.5% to 5.0% of net sales. The change in the operating income estimate reflects a difficult first half due to the unavailability of material. Under normal operating conditions, the company expects an annual run rate for operating income in the range of 4.5% - 5.0% of net sales. The second half of fiscal 2022 is expected to ramp up significantly throughout the period, with a very strong finish to the fiscal year and operating income above that range, as the backlog of open orders is worked down. Capital expenditures for fiscal year 2022 are now expected to be in the range of $70 million to $80 million compared to the original guidance of $60 million to $70 million. This update includes the facility expansions in Thailand, Mexico, and the early investments associated with today’s announcement of the facility expansion in Poland.

Register now for "Best DFM Practices for Board Engineers," a new three-hour webinar from Susy Webb, CID. Coming Feb. 22. www.pcb2day.com