-
- News
- Books
Featured Books
- smt007 Magazine
Latest Issues
Current IssueWhat's Your Sweet Spot?
Are you in a niche that’s growing or shrinking? Is it time to reassess and refocus? We spotlight companies thriving by redefining or reinforcing their niche. What are their insights?
Moving Forward With Confidence
In this issue, we focus on sales and quoting, workforce training, new IPC leadership in the U.S. and Canada, the effects of tariffs, CFX standards, and much more—all designed to provide perspective as you move through the cloud bank of today's shifting economic market.
Intelligent Test and Inspection
Are you ready to explore the cutting-edge advancements shaping the electronics manufacturing industry? The May 2025 issue of SMT007 Magazine is packed with insights, innovations, and expert perspectives that you won’t want to miss.
- Articles
- Columns
- Links
- Media kit
||| MENU - smt007 Magazine
Key Tronic Posts Year-over-Year Revenue Up 8% in Q1 Fiscal Year 2024
November 1, 2023 | Key Tronic Corp.Estimated reading time: 2 minutes
Key Tronic Corporation, a provider of electronic manufacturing services (EMS), announced its results for the quarter ended September 30, 2023. These results are in line with the preliminary results announced on October 24, 2023.
For the first quarter of fiscal year 2024, Keytronic reported total revenue of $147.8 million, up 8% from $137.3 million in the same period of fiscal year 2023. The Company’s gross margin for the first quarter of 2024 was 7.4% and operating margin was 2.2%, compared to a gross margin of 7.6% and an operating margin of 2.4% in the same period of fiscal 2023. For the first quarter of fiscal 2024, net income was $0.3 million or $0.03 per share, compared to $1.2 million or $0.11 per share for the same period of fiscal 2023.
The year-over-year decline in earnings was primarily a result of unanticipated severance costs of $0.6 million, or approximately $0.04 to $0.05 per diluted share, as the Company reduced its workforce by over 100 employees in Mexico and the US. The workforce reduction reflects softening demand for a number of different programs and is expected to reduce operating expenses by more than $5 million annually. Keytronic also continued to be adversely impacted by high interest expense and the strength of the Mexican Peso, although the Mexican Peso has weakened during the second quarter.
“During first quarter of fiscal year 2024, we continued to ramp many new programs produced in our US facilities and remained profitable, despite a softening of customer demand for our Mexico-based programs,” said Craig Gates, President and Chief Executive Officer. “As previously announced, the large program with a leading power equipment company is now expected to resume materially in fiscal 2025 rather than 2024, with a redesigned product.”
“At the same time, we continued to expand our customer base during the first quarter and won new programs involving security equipment, sporting goods, environmental solutions, and industrial control systems. We’re also seeing some gradual improvement in our gross margins and have continued to reduce our inventories to be more in line with current revenue levels, as well as reducing our accounts payable, leasing obligations and overall debt in the quarter.”
“In the second half of fiscal year 2024, we expect increased demand for many of our Mexico-based programs. Overall, we continue to see the favorable trend of contract manufacturing returning to North America, as well as a growing number of potential customers evaluating a migration of their China-based manufacturing to our facility in Vietnam.”
The financial data presented for first quarter of fiscal year 2024 should be considered preliminary and could be subject to change, as the Company’s independent auditor has not completed their review procedures.
Business Outlook
For the second quarter of fiscal 2024, Keytronic expects to report revenue in the range of $135 million to $145 million and earnings in the range of $0.05 to $0.10 per diluted share. These expected results assume an effective tax rate of 20% in the coming quarter.
Suggested Items
TRI Unveils New Multi-Camera AOI, TR7500 SIII Ultra
07/01/2025 | TRITest Research, Inc. (TRI), the leading test and inspection systems provider for the electronics manufacturing industry, proudly introduces the new TR7500 SIII Ultra.
SMT007 Magazine July—What’s Your Competitive Sweet Spot?
07/01/2025 | I-Connect007 Editorial TeamAre you in a niche that’s growing or shrinking? Is it time to reassess and refocus? We spotlight companies thriving by redefining or reinforcing their niche—what are their insights? In the July 2025 issue of SMT007 Magazine, we spotlight companies thriving by redefining or reinforcing their niche and offer insights to help you evaluate your own.
TRI Unveils New Multi-Camera AOI, TR7500 SIII Ultra
06/27/2025 | TRITest Research, Inc. (TRI), the leading test and inspection systems provider for the electronics manufacturing industry, proudly introduces the new TR7500 SIII Ultra.
NVIDIA RTX PRO 6000 Shipments Expected to Rise Amid Market Uncertainties
06/24/2025 | TrendForceThe NVIDIA RTX PRO 6000 has recently generated significant buzz in the market, with expectations running high for strong shipment performance driven by solid demand.
Green Circuits Boosts Test Capacity with New Takaya APT-1600FD System
06/24/2025 | Green CircuitsGreen Circuits, a full-service Electronics Manufacturing Services (EMS) partner to leading OEMs, is pleased to announce the purchase of its fourth Takaya APT-1600FD Double-sided Flying Probe Test System.