Business
Key Tronic Corporation Announces Preliminary Results for the Third Quarter of Fiscal Year 2021
SPOKANE VALLEY, Wash., May 05, 2021 (GLOBE NEWSWIRE) -- Key Tronic Corporation (Nasdaq: KTCC), a provider of electronic manufacturing services (EMS), today
About this update from Key Tronic Corporation
[{"type":"text","content":"SPOKANE VALLEY, Wash., May 05, 2021 (GLOBE NEWSWIRE) -- Key Tronic Corporation (Nasdaq: KTCC), a provider of electronic manufacturing services (EMS), today announced its preliminary results for the quarter ended April 3, 2021. For the third quarter of fiscal 2021, Key Tronic expects to report revenue of approximately $134.6 million and earnings of approximately $0.10 to $0.12 per share. Customer demand has remained strong and new and existing customers have increased their backlog. While component supply issues limited our production, the third quarter was the best quarter in our history for customer demand, which exceeded $150 million. The lower than anticipated earnings for the third quarter of fiscal 2021 are primarily a result of 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 third quarter of 2021 were impacted by legal expenses related to the previously disclosed internal investigation discussed below, a temporary four-day closure of our 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 fourth quarter of fiscal 2021, Key Tronic expects to report revenue in the range of $130 million to $140 million with earnings in the range of $0.10 to $0.20 per share. These estimates assume 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. Customer demand remains very strong and we believe could again exceed $150 million if component supply meets demand. The financial data presented for the third quarter of fiscal 2021 is preliminary and subject to completion of the Company’s quarterly close and review procedures and completion of the internal investigation, as discussed below. Further, the Company’s independent auditor has not completed its review. As previously disclosed, the Audit Committee of the Company’s Board of Directors (the “Audit Committee”) is conducting an internal investigation related to a notification from an employee regarding irregularities of the classification of inventory at a production facility. The investigation is ongoing, and the ...