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Key Tronic Corporation Announces Results for the Fourth Quarter and Year End of Fiscal 2020
Continued New Program Wins; Expecting Continued Revenue Growth in the First Quarter SPOKANE VALLEY, Wash., Aug. 04, 2020 (GLOBE NEWSWIRE) -- Key Tronic
About this update from Key Tronic Corporation
[{"type":"text","content":"Continued New Program Wins; Expecting Continued Revenue Growth in the First Quarter\nSPOKANE VALLEY, Wash., Aug. 04, 2020 (GLOBE NEWSWIRE) -- Key Tronic Corporation (Nasdaq: KTCC), a provider of electronic manufacturing services (EMS), today announced its results for the quarter and the year ended June 27, 2020.\n For the fourth quarter of fiscal year 2020, Keytronic reported total revenue of $116.0 million, up 10% from $105.6 million in the same period of fiscal year 2019. During the fourth quarter of fiscal year 2020, the Company’s revenue was significantly constrained by the temporary shutdown of its facilities in Juarez by the Mexican government due to the COVID-19 pandemic and associated delays in production. For the full year of fiscal 2020, total revenue was $449.5 million, compared to $464.0 million in the same period of fiscal year 2019. During the fourth quarter of fiscal year 2020, the Company incurred a variety of additional costs caused by the COVID-19 crisis totaling approximately $2.2 million or $0.16 per share. These expenses are related to the temporary shutdown and restart of the Company’s Juarez facility, 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 reduced the Company’s margins. For the fourth quarter of fiscal year 2020, gross margin was 7.4% and operating margin was 0.9%, compared to gross margin of 7.9% and an operating margin of 1.3%, in the same period of fiscal 2019. For the fourth quarter of fiscal year 2020, net income was $1.5 million or $0.14 per share, compared to $0.8 million or $0.08 per share for the same period of fiscal year 2019. Earnings for the fourth quarter of fiscal year 2020 included a tax benefit from releasing a portion of the Company’s allowance on research and development credits taken in previous years of $1.3 million or $0.12 per share. For the full year of fiscal year 2020, net income was $4.8 million or $0.44 per share, compared to a net loss of $8.0 million or $(0.74) per share for fiscal year 2019. Excluding the goodwill and intangibles write down in fiscal 2019, the Company would have reported net income of $4.5 million or $0.42 per for fiscal year 2019. “During the past fiscal year, we overcame a number of powerful global headwinds, including c...