Business
Key Tronic Corporation Announces Results for the Second Quarter of Fiscal Year 2021
13% Year-to-Date Revenue Growth and New Program Wins; Expecting Continued Growth in the Third Quarter SPOKANE VALLEY, Wash., Jan. 26, 2021 (GLOBE NEWSWIRE) --
About this update from Key Tronic Corporation
[{"type":"text","content":"13% Year-to-Date Revenue Growth and New Program Wins; Expecting Continued Growth in the Third Quarter\nSPOKANE VALLEY, Wash., Jan. 26, 2021 (GLOBE NEWSWIRE) -- Key Tronic Corporation (Nasdaq: KTCC), a provider of electronic manufacturing services (EMS), today announced its results for the quarter ended December 26, 2020. For the second quarter of fiscal year 2021, Key Tronic reported total revenue of $128.3 million, up 10% from $116.7 million in the same period of fiscal year 2020. For the first six months of fiscal year 2021, total revenue was $251.5 million, up 13% from $222.0 million in the same period of fiscal year 2020. The revenue increase during the second quarter of fiscal year 2021 was due to the successful ramp of new customer programs and increased demand from existing customers. At the same time, the Company’s revenue continued to be constrained by government imposed shutdowns and labor shortages at its facilities in Juarez due to the COVID-19 pandemic and associated public health measures. For the second quarter of fiscal year 2021, net income was $1.6 million or $0.14 per share, up from $0.8 million or $0.08 per share for the same period of fiscal year 2020. For the first six months of fiscal year 2021, net income was $3.3 million or $0.30 per share, up from $2.4 million or $0.22 per share for the same period of fiscal year 2020. During the second quarter of fiscal year 2021, the Company incurred additional costs caused by the COVID-19 crisis totaling approximately $1.8 million or $0.13 per share. Despite the pandemic’s adverse impact on revenue and expenses, the Company’s margins improved in the second quarter of fiscal year 2021 due to increased revenue. Gross margin was 8.3% and operating margin was 2.1%, up from a gross margin of 7.0% and an operating margin of 1.3%, in the same period of fiscal year 2020. “We’re pleased with the successful ramp of new programs and our strong revenue growth in the second quarter of fiscal 2021, despite the continued headwinds from COVID-19,” said Craig Gates, President and Chief Executive Officer. “During the second quarter of fiscal 2021, we continued to see the favorable trend of contract manufacturing returning to North America and won new programs involving security and home automation and industrial products.” “Moving into the third quarter of fiscal 2021, we expect conti...