Key Tronic Awarded $6.7M In Arbitration
September 11, 2018 | Key Tronic Corp.Estimated reading time: 1 minute
Key Tronic Corporation was awarded $6.7 million following the conclusion of a previously disclosed arbitration proceeding, which the Company commenced in the second quarter of fiscal year 2017.
This award resolves a dispute with a former customer involving approximately $9 million in inventory purchased and approximately $1 million in outstanding accounts receivables and other related fees and costs that the Company believed to be reimbursable.
The company has determined this award to be a “subsequent event” to its fiscal year 2018. This event, including all related disposal fees, will result in an approximately $3.4 million one-time adverse impact to fiscal year 2018 net income, with additional disclosures included in the Company’s annual report on Form 10-K for the fiscal year ended June 30, 2018. For the fourth quarter of fiscal year 2018, the Company with the inclusion of the impact of this event is expected to report a net loss of approximately $2.1 million and a net loss of $1.3 million for the full fiscal year 2018.
Collection of the arbitration award is expected to be cash positive for the Company as the inventory has been previously paid for.
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.
Suggested Items
Ansys’ Collaboration with Schrödinger will Accelerate Materials Development with Unprecedented Multiscale Simulation
05/09/2024 | ANSYSAnsys and Schrödinger are collaborating to deliver an ICME approach that bridges the gap between materials discovery and product development.
Real Time with… IPC APEX EXPO 2024: Innovative Lamination Technology
05/07/2024 | Real Time with...IPC APEX EXPOKevin Barrett of Insulectro and Victor Lazaro of Indubond discuss their companies' partnership, focusing on Indubond's innovative lamination technology that uses induction heating. They discuss the advantages of this technology over traditional methods, its benefits to customers, and the crucial role of automation in manufacturing.
Micron First to Ship Critical Memory for AI Data Centers
05/01/2024 | MicronMicron Technology, Inc. announced it is leading the industry by validating and shipping its high-capacity monolithic 32Gb DRAM die-based 128GB DDR5 RDIMM memory in speeds up to 5,600 MT/s on all leading server platforms.
HQ NextPCB of HQ Electronics Debut on the International Stage for Electronics Manufacture at IPC APEX 2024
05/01/2024 | PRNewswireHQ NextPCB of HQ Electronics, a leading Chinese-based multilayer PCB manufacturer and assembly house showcased its industrial prowess on the international stage for the first time at the IPC APEX Expo 2024.
GPV’s Q1 2024 Interim Financial Report Shows Strong Navigation in Uncertain Times
05/01/2024 | GPVDanish-based GPV recorded an expected drop in sales to DKK 2.3 billion for the first quarter of 2024. The decline also affected the operating profit, which was DKK 155 million compared to DKK 179 million in the same quarter last year, although the EBITDA margin was maintained. In general, demand has been softer in 2024, but GPV continues to invest for the long-term and expects the trend to turn in the second half of 2024.