The Knowledge Base: The Impact of Harsh Environments on Residue Tolerance
Standard of Excellence: Hiring for Quality Positions in Manufacturing, Engineering, and Management
Global Citizenship: What I’ve Learned About the American PCB Business
Key Tronic Reports 67% Revenue Growth in Fiscal Q4
August 19, 2015 | Key Tronic Corp.Estimated reading time: 2 minutes
Key Tronic Corporation, a provider of electronic manufacturing services (EMS), today announced its results for the three months and full year ended June 27, 2015. The Company’s results were in-line with its previous guidance.
For the fourth quarter of fiscal year 2015, Key Tronic reported total revenue of $120.4 million, up 67% from $72.1 million in the same period of fiscal year 2014. Results for the fourth quarter of fiscal year 2015 included approximately $37 million in revenue from CDR Manufacturing, Inc. (dba Ayrshire Electronics), which was acquired on September 3, 2014.
For the full year of fiscal year 2015, total revenue was $434.0 million, up 42% from $305.4 million for fiscal year 2014. The Company continued to diversify its customer base, with the five largest customers in fiscal year 2015 representing 42% of its total revenue, compared to 62% in the prior year.
Net income for the fourth quarter of fiscal year 2015 was $2.3 million or $0.21 per diluted share, up from $1.4 million or $0.12 per diluted share for the same period of fiscal year 2014. Results for the fourth quarter of fiscal year 2015 included tax credits for research and development activities of approximately $0.5 million or $0.04 per diluted share. For the full year of fiscal year 2015, net income was $4.3 million or $0.38 per diluted share, compared to $7.6 million or $0.67 per diluted share for the same period of fiscal year 2014.
For the fourth quarter of fiscal year 2015, gross margin was 9% and operating margin was 3%, comparable to the same period of fiscal year 2014. For the full year of fiscal year 2015, gross margin was 8% and operating margin was 2%, compared to 9% and 3%, respectively, for fiscal year 2014. Over the longer term we expect our gross margin to gradually improve and move in the 9% to 10% range and expect increasing operating margin.
“During fiscal 2015, despite slowdowns by some longstanding customers, we made significant progress ramping up new programs, expanding our customer base and extending our worldwide capabilities,” said Craig Gates, President and Chief Executive Officer. “The major event of the year was our acquisition and successful integration of Ayrshire Electronics, which significantly increased our combined annual revenue and more than doubled our number of customers, giving us a much stronger and more diverse foundation for growth.”
“We’re especially encouraged to see Ayrshire customers continue to award us with additional business because of our combined capabilities and global manufacturing footprint. At the same time, we have continued to penetrate into an even wider range of industries. In the fourth quarter, we won new programs involving home building products, material handling systems and lighting equipment.”
“Entering fiscal 2016, as our new programs move into production and ramp up, we expect to see increasing revenue and earnings. Moreover, we continue to win new business, driven by the growing demand for our North American-based production, unique global structure, customer responsiveness, vertical integration and engineering capabilities. As we get the integration of the Ayrshire acquisition successfully behind us, we believe Key Tronic is increasingly well positioned to grow profitably, capture market share and capitalize on emerging opportunities.”
Business Outlook
For the first quarter of fiscal year 2016, the Company expects to report revenue in the range of $122 million to $130 million, and earnings in the range of $0.17 to $0.24 per diluted share. The expected earnings range assumes an effective tax rate of 35%.
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.
Share on:
Suggested Items
Absolute EMS Enters Strategic Partnership with PTEC Solutions to Enhance End-to-End Electronics Manufacturing Capabilities
11/27/2024 | PTEC SolutionsAbsolute EMS, Inc., a six-time award-winning provider of fast turnaround, turnkey contract electronic manufacturing services (EMS), is excited to announce a new partnership with PTEC Solutions, a highly respected provider specializing in design, cable and mechanical assembly services.
Plasmatreat Expands its International Network and Opens a Subsidiary in Mexico
11/26/2024 | PlasmatreatOn-site sales, consulting, application engineering and service for local companies and global corporations based in Mexico: Plasmatreat GmbH has opened another branch in Querétaro, Mexico, to provide even better and more direct support to users and interested parties of atmospheric pressure plasma technology. Plasmatreat continues to expand its international network.
HANZA Wins New Customer in Germany
11/25/2024 | HANZAHANZA AB, listed on Nasdaq Stockholm, continues to secure new business, and has entered a manufacturing partnership with a leading German company specializing in advanced measurement equipment for mechanical components.
VORAGO Technologies, Collabora Partner to Advance Open Source in Space
11/25/2024 | GlobeNewswireVORAGO Technologies, a leading provider of radiation hardened and radiation tolerant MCUs and MPUs for Aerospace and Defense, and Collabora, a leader in open source software and support, announced they are partnering to advance the use of open source to achieve resilience for mission critical applications in space.
Designing for Cost to Manufacture
11/21/2024 | Marcy LaRont, I-Connect007ICAPE's Richard Koensgen, a seasoned field application engineer with a rich background in PCB technology, shares his journey of working with customers and manufacturers through the intricacies of circuit board development and emphasizes the importance of early-stage collaboration with PCB designers. With a focus on tackling the most challenging aspects of PCB design and manufacturing, he discusses everything from layout considerations to the thermal challenges of today's technology when it comes to designing for cost.