SMT Perspectives and Prospects: Warren Buffett’s Perpetual Wisdom, Part 1
Standard of Excellence: Training Your Team to Excel in Customer Service
Smart Automation: What Industry 4.0 Means for Mid-sized Electronics Manufacturing
Key Tronic Posts $118.5M Revenue in Q2 FY 2017
February 6, 2017 | Key Tronic Corp.Estimated reading time: 1 minute
Key Tronic Corporation, a provider of electronic manufacturing services (EMS), has announced its results for the quarter ended December 31, 2016.
For the second quarter of fiscal year 2017, Key Tronic reported total revenue of $118.5 million, up 2% from $116.4 million in the same period of fiscal year 2016. For the first six months of fiscal year 2017, total revenue was $235.7 million, compared to $242.6 million in the same period of fiscal year 2016.
Net income for the second quarter of fiscal year 2017 was $1.5 million or $0.14 per share, compared to $1.8 million or $0.16 per share for the second quarter of fiscal year 2016. For the first six months of fiscal year 2017, net income was $3.3 million or $0.30 per share, up 27% from $2.6 million or $0.23 per share for the same period of fiscal year 2016.
For the second quarter of fiscal year 2017, gross margin was 8.1% and operating margin was 2.1%, compared to 7.8% and 2.1%, respectively, in the same period of fiscal 2016.
"During the second quarter of fiscal 2017, our new programs continued to ramp, more than offsetting a modest slowdown in demand from a few longstanding customers, which is consistent with EMS industry-wide experience," said Craig Gates, President and Chief Executive Officer. "At the same time, we captured significant new business from other EMS competitors, including established programs that will begin generating revenue before the end of fiscal 2017."
"We recently won new programs involving inventory automation systems and commercial lighting. Moving into the third quarter, we continue to see a robust pipeline of potential new business and our new programs continue to ramp, effectively offsetting softening sales demand in some current programs. In preparation for future growth, we continue to invest in expanding our SMT, sheet metal and plastic molding capabilities."
Business Outlook
For the third quarter of fiscal year 2017, the Company expects to report revenue in the range of $115 million to $120 million, and earnings in the range of $0.11 to $0.16 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, click here.
Share on:
Testimonial
"We’re proud to call I-Connect007 a trusted partner. Their innovative approach and industry insight made our podcast collaboration a success by connecting us with the right audience and delivering real results."
Julia McCaffrey - NCAB GroupSuggested Items
Thanks a Million: STI Electronics Celebrates Creating 1 Million Power Supply Boards for Night Vision Goggles
07/28/2025 | Sandy Gentry, Community MagazineIn an industry where precision and reliability are paramount, STI Electronics Inc. recently celebrated a remarkable milestone: the production of its 1 millionth power supply board for L3Harris Technologies’ state-of-the-art night vision goggles. This achievement not only marks a significant volume for military electronics manufacturing but also highlights the enduring partnership between STI and L3Harris.
Inside Aimtron’s Cross-border EMS Strategy
07/08/2025 | Nolan Johnson, SMT007 MagazineMukesh Vasani immigrated from a very small farming village in India to the U.S. in 1995 as a civil engineer. After shifting into electronics, Mukesh built his Chicago-based company, Aimtron, into a successful enterprise by combining quality with competitive pricing. He leveraged his roots in India to expand manufacturing without compromising on quality.
Tariff Effects and China Subsidies Soften 1Q25 Downturn; Foundry Revenue Decline Narrows to 5.4%
06/09/2025 | TrendForceTrendForce’s latest investigations find that the global foundry industry recorded 1Q25 revenue of US$36.4 billion—a 5.4% QoQ decline. The downturn was softened by last-minute rush orders from clients ahead of the U.S. reciprocal tariff exemption deadline, as well as continued momentum from China’s 2024 consumer subsidy program.
Nordson Reports Q2 Fiscal 2025 Results and Q3 Guidance
05/30/2025 | BUSINESS WIRENordson Corporation reported results for the fiscal second quarter ended April 30, 2025. Sales were $683 million compared to the prior year’s second quarter sales of $651 million.
Rocket Lab Enters Payload Market with Agreement to Acquire Geost
05/28/2025 | BUSINESS WIRERocket Lab Corporation, a global leader in launch services and space systems, today announced the signing of a definitive agreement to acquire the parent holding company of Geost, LLC (Geost).