Business
Key Tronic Corporation Announces Results for the First Quarter of Fiscal Year 2022
8% Year-over-Year Revenue Growth, Strong Customer Demand and New Program Wins SPOKANE VALLEY, Wash., Nov. 02, 2021 (GLOBE NEWSWIRE) -- Key Tronic Corporation
About this update from Key Tronic Corporation
[{"type":"text","content":"8% Year-over-Year Revenue Growth, Strong Customer Demand and New Program Wins\nSPOKANE VALLEY, Wash., Nov. 02, 2021 (GLOBE NEWSWIRE) -- Key Tronic Corporation (Nasdaq: KTCC), a provider of electronic manufacturing services (EMS), today announced its results for the quarter ended October 2, 2021. For the first quarter of fiscal year 2022, Keytronic reported revenue of approximately $132.8 million, up 8% from $123.2 million in the same period of fiscal year 2021. While demand has remained strong from both new and existing customers, revenue for the first quarter of fiscal year 2022 continued to be significantly constrained by challenges related to the global materials supply chain, transportation, logistics and the pandemic. The global supply chain, pandemic and transportation issues continued to disrupt production during the quarter. Intermittent parts supply required both factory downtime and overtime expenses, which had an adverse impact on the Company’s margins and earnings. In the first quarter of fiscal year 2022, gross margin was 7.6% and operating margin was 1.6%, compared to a gross margin of 8.1% and an operating margin of 2.3%, for the same period of fiscal year 2021. For the first quarter of fiscal year 2022, net income was $0.8 million or $0.07 per share, compared to $1.7 million or $0.16 per share for the same period of fiscal year 2021. Earnings for the first quarter of fiscal 2022 were also impacted by legal and other professional service expenses related to the previously disclosed internal investigation of approximately $0.4 million during the quarter. The financial data presented for the first quarter of fiscal year 2022 should be considered preliminary and could be subject to change, as the Company’s independent auditor has not completed their review. “We’re pleased with the strong customer demand during the first quarter of fiscal 2022 and our successful launch of major new programs in spite of continued headwinds from worldwide component shortages, transportation bottlenecks and the global pandemic,” said Craig Gates, President and Chief Executive Officer. “During the first quarter of fiscal 2022, we won new programs involving industrial testing equipment, medical diagnostic products, and pharmaceutical water treatment.” “Moving further into fiscal 2022, component shortages, logistic delays and the COVID-19 c...