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EMS provider Key Tronic Corp. has reported total revenue of $117 million for the fourth quarter of fiscal year 2018, up by 8% from $108.3 million in the prior quarter and compared to $118.5 million in the same period of fiscal year 2017. For fiscal year 2018, total revenue was $446.3 million, compared to $467.8 million in fiscal year 2017.
For the fourth quarter, Key Tronic had net income of approximately $1.3 million. For fiscal year 2018, net income was $2.1 million, compared to net income of $5.6 million for fiscal year 2017.
“For the fourth quarter of fiscal 2018, we saw increasing demand from a number of our longstanding customers and most of our new programs, including Skybell Technologies, continued to ramp,” said Craig Gates, president and CEO. “We also continued to win significant new business from EMS competitors and from existing customers, including new programs involving medical devices, distribution services and electronic signage. At the same time, our productivity continued to be adversely impacted by industry wide shortages in key components, resulting in delays in delivery and increased costs.
“While 2018 was a challenging year, we replaced the revenue shortfall caused by a large former customer, significantly diversified our customer base, reduced our debt by $8.0 million for the year and returned to strong sequential growth in the fourth quarter. Moving into the first quarter of fiscal year 2019, although we continue to face industry supply chain issues and increased uncertainty around the tariff situation, we expect growth in revenue and earnings. In preparation, we continue to invest in new equipment and processes to be more productive in our Mexico facilities, and we’re expanding and enhancing our profitable US facilities. We’re optimistic about our opportunities for growth in fiscal 2019 and beyond.”
Business Outlook
For the first quarter of fiscal year 2019, Key Tronic expects to report revenue in the range of $118 million to $122 million, and earnings in the range of $0.12 to $0.17 per diluted share. These expected results assume an effective tax rate of 20% 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.
