JASPER, IN -- Kimball Electronics announced fiscal first quarter sales of $374.3 million, down from $438.1 million a year ago for the period ended Sept. 30.

Net income fell 71% to $3.1 million.

The EMS company will close its plant in Tampa and lay off about 250 employees.

Richard D. Phillips, chief executive, said in a press statement: “Q1 represents another chapter of ‘controlling what we can control’ while navigating the challenging operating environment stemming from sustained end market weakness. Our results for the quarter were in line with expectations, considering the difficult comparisons from a record-setting Q1 last year. We continue to adjust costs, improve working capital management, and generate positive cash flow used to pay down debt. We made meaningful progress in the quarter with debt levels at a two-year low, a result of the cash generated from operating activities and the proceeds from the disposition of the Automation, Test, and Measurement business, with its divestiture closing in July.

“As part of sharpening our strategic focus, we’re also announcing a plan to leverage the capacity in our global footprint and further streamline the operating structure. Production activities on existing customer programs will be transferred out of Tampa, with the majority of the work going to the newly expanded facility in Mexico and Jasper. Operations in Tampa are expected to cease by the end of the fiscal year, and we anticipate the facility closing in Q1 of fiscal 2026. We are grateful to the employees in Tampa and their accomplishments while part of Kimball, including supplying ventilators to those in need during the pandemic. This decision is based on the preferences of our customers, our outlook for US manufacturing, and an objective to improve the Company’s competitive positioning in the market, strengthen the balance sheet, increase liquidity, and improve financial flexibility. We are confirming our guidance for the full fiscal year and look forward to the future.”

The company ended the quarter with cash and cash equivalents of $76.6 million and borrowings outstanding on credit facilities of $246 million, including $200 million classified as long term. Cash from operating activities totaled $45.5 million and capital expenditures were $13.5 million.

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