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Key Tronic Corporation Announces Results for the First Quarter of Fiscal Year 2021
Revenue Growth and New Program Wins; Expecting Continued Growth in the Second Quarter SPOKANE VALLEY, Wash., Oct. 27, 2020 (GLOBE NEWSWIRE) -- Key Tronic
About this update from Key Tronic Corporation
[{"type":"text","content":"Revenue Growth and New Program Wins; Expecting Continued Growth in the Second Quarter\nSPOKANE VALLEY, Wash., Oct. 27, 2020 (GLOBE NEWSWIRE) -- Key Tronic Corporation (Nasdaq: KTCC), a provider of electronic manufacturing services (EMS), today announced its results for the quarter ended September 26, 2020.\n For the first quarter of fiscal year 2021, Key Tronic reported total revenue of $123.2 million, up 17% from $105.3 million in the same period of fiscal year 2020. The increase in revenue was due to the successful ramp of new customer programs and increased demand from existing customers. However, partially offsetting the increase in revenue during the first quarter of fiscal year 2021, the Company’s revenue was constrained by labor shortages at its facilities in Juarez due to the COVID-19 pandemic and associated public health measures. During the first quarter of fiscal year 2021, the Company incurred additional costs caused by the COVID-19 crisis totaling approximately $1.4 million or $0.10 per share. These expenses are related to increased compensation at the Company’s Juarez facility in order to reduce turnover of available employees, as well as preventative measures and equipment for employees at all of its facilities in the US, Mexico, China and Vietnam. The pandemic’s adverse impact on revenue and expenses also reduced the Company’s margins. For the first quarter of fiscal year 2021, gross margin was 8.1% and operating margin was 2.3%, compared to gross margin of 8.8% and an operating margin of 2.4%, in the same period of fiscal 2020. For the first quarter of fiscal year 2021, net income was $1.7 million or $0.16 per share, compared to $1.6 million or $0.14 per share for the same period of fiscal year 2020. “We’re pleased with the successful launch of new programs, rebounding customer demand and our strong revenue growth in the first quarter of fiscal 2021,” said Craig Gates, President and Chief Executive Officer. “We are ramping recent program wins and, while some of our legacy customers continued to have reduced demand due to the pandemic and related economic slowdown, several have increased demand during the first quarter of fiscal 2021, including programs for healthcare, industrial controls, and telecommunications. During the first quarter of fiscal 2021, we won new programs involving audio and video editing system...