Keytronic Announces Results For Q1 of Fiscal Year 2025
November 8, 2024 | KeytronicEstimated reading time: 2 minutes
Key Tronic Corporation, a provider of electronic manufacturing services (EMS), announced its results for the quarter ended September 28, 2024.
For the first quarter of fiscal year 2025, Key Tronic reported total revenue of $131.6 million, compared to $150.1 million in the same period of fiscal year 2024. Revenue in the first quarter of fiscal year 2025 was adversely impacted by customer-driven design and qualification delays of three programs that we believe impacted revenue by approximately $9 million. These delays have since been resolved on two of these programs and shipments have resumed in the second quarter. Production in Key Tronic’s Mexico facilities in the first quarter of fiscal year 2025 increased by approximately 10% sequentially from the prior quarter
The Company saw significant improvement in its production efficiencies compared to the first quarter of fiscal year 2024, primarily as a result of recent headcount reductions, continued improvements in the supply chain and a favorable decline in the exchange rate of the Mexican Peso. Gross margins were 10.1% and operating margins were 3.4% in the first quarter of fiscal year 2025, up from 7.2% and 2.2%, respectively, in the same period of fiscal year 2024.
Net income was $1.1 million or $0.10 per share for the first quarter of fiscal year 2025, compared to net income of $0.3 million or $0.03 per share for the same period of fiscal year 2024. Adjusted net income was $1.2 million or $0.11 per share for the first quarter of fiscal year 2025, compared to $0.0 million or $0.00 per share for the same period of fiscal year 2024. See “Non-GAAP Financial Measures,” below for additional information about adjusted net income and adjusted net income per share.
“While we did not meet revenue expectations in our first quarter of fiscal 2025 due to unavoidable delays for a few programs, we are pleased to see our improved operating efficiencies, margins, and liquidity,” said Brett Larsen, President and CEO. “The recent workforce reductions in Mexico, trimming of non-profitable programs, and making a concerted effort to improve working capital are starting to pay off. We also continued to reduce our inventories, which are now much more in line with our revenue levels. Over the longer term, we expect that these strategic changes will improve our overall profitability.”
“During the first quarter, we also continued to win new business, including new programs in manufacturing equipment, vehicle lighting, and commercial pest control. We believe we are well positioned for increased growth and profitability in coming periods.”
The financial data presented for the first quarter of fiscal 2025 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 2025, Key Tronic expects to report revenue in the range of $130 million to $140 million and earnings in the range $0.05 to $0.15 per diluted share. These expected results assume an effective tax rate of 20% in the coming quarter.
Suggested Items
Growth Unfolds: The First of STARTEAM’s Trio of Factories Set to Expand
12/05/2024 | STARTEAM GLOBALSTARTEAM is thrilled to share news of our upcoming 3-step expansion at JST, with each step adding 50,000m² per month which began on May 27, 2024. This carefully planned extension is designed to significantly increase our production capacity and expand our talented team. Currently, our production space covers 30,000m². Through this expansion, we are setting our sights on incrementally increasing our capacity from 70,000m²/month to a remarkable 130,000m²/month.
American Standard Circuits Earns IATF 16949 Automotive Re-Certification
12/05/2024 | American Standard CircuitsAnaya Vardya, President and CEO of American Standard Circuits and ASC Sunstone has announced that his company’s West Chicago Division has passed their recent IATF 16949 Automotive re-certification.
Consumer Electronics Manufacturing Market to Surge Valuation Set to Hit $4,267 Billion by 2034 at 9.5% CAGR
12/05/2024 | Globe NewswireAccording to a new study published by Fact.MR, a market research and competitive intelligence provider, the worldwide Consumer Electronics Manufacturing Market is projected to increase from a value of US$ 1,727.94 billion in 2024 to US$ 4,267.27 billion by the end of 2034.
EpoxySet to Exhibit at MD&M West
12/05/2024 | epoxySetEpoxySet Inc. will be exhibiting at MD&M West on February 4-6, 2025 in the Anaheim Convention Center, booth 617.
TTM Technologies to Exhibit at the 2024 International Electronics Circuit Exhibition in Shenzhen, China
12/04/2024 | Globe NewswireTTM Technologies, Inc., a leading global manufacturer of technology solutions including mission systems, radio frequency (RF) components and RF microwave/microelectronic assemblies and printed circuit boards (PCBs), announces that it will exhibit at the 2024 International Electronics Circuit Exhibition (Shenzhen).