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EMS provider Key Tronic Corporation has announced its results for the quarter and year ended July 1, 2017.
For the fourth quarter of fiscal year 2017, Key Tronic reported total revenue of $118.5 million, compared to $123.9 million in the same period of fiscal year 2016. For fiscal year 2017, total revenue was $467.8 million, compared to $485.0 million for fiscal year 2016.
Net income for the fourth quarter of fiscal year 2017 was $1.3 million or $0.12 per share, compared to $2.1 million or $0.20 per share for the same period of fiscal year 2016. For fiscal year 2017, net income was $5.6 million or $0.51 per share, compared to $6.5 million or $0.58 per share for fiscal year 2016.
For the fourth quarter of fiscal year 2017, gross margin was 8.3% and operating margin was 2.0%, compared to 8.7% and 2.8%, respectively, in the same period of fiscal year 2016. The results for the fourth quarter of fiscal 2017 include approximately $3.2 million in revenue for shipped excess inventory for a prior customer at cost, which had no contribution to margins.
“During fiscal 2017, our revenue and margins were impacted by declining demand from some longstanding customers, which was not yet offset by the continued ramp up in revenue from our new programs,” said Craig Gates, president and CEO. “While the EMS business is very competitive, we continued to win new business during the year, including two new programs involving gaming and seismic monitoring devices awarded in the fourth quarter, bringing the total number of significant program wins to nine for the fiscal year.
“Throughout fiscal 2017, we made significant investments in improving our customer support organization and expanding our SMT, sheet metal and plastic molding capabilities in preparation for future growth. Moving into fiscal 2018, we continue to see a strong pipeline of potential new business and our new programs continue to ramp. We believe we’re well positioned to see growth in revenue and increasing profitability in the second half of fiscal 2018.”
For the first quarter of fiscal year 2018, the company expects to report revenue in the range of $110 million to $115 million, and earnings in the range of $0.10 to $0.15 per diluted share. These expected results assume an effective tax rate of 25% in the quarter.
About Key Tronic
Key Tronic is a leading contract manufacturer offering value-added design and manufacturing services from its facilities in the United States, Mexico and China. The Company provides its customers full engineering services, materials management, worldwide manufacturing facilities, assembly services, in-house testing, and worldwide distribution. Its customers include some of the world’s leading original equipment manufacturers. For more information about Key Tronic, visit www.keytronic.com.