New Program Wins; Cost Reduction Initiatives; Expansion Plans in US and VietnamSPOKANE VALLEY, Wash., Feb. 04, 2025 (GLOBE NEWSWIRE) -- Key Tronic Corporation (Nasdaq: KTCC), a provider of electronic manufacturing services (EMS), today announced its results for the quarter ended December 28, 2024. These results are in line with the updated guidance provided on January 24, 2025. For the second quarter of fiscal year 2025, Key Tronic reported total revenue of $113.9 million, compared to $147.8 million in the ...

Program expected to have a materially significant impact on revenue and profitSPOKANE VALLEY, Wash., Jan. 24, 2025 (GLOBE NEWSWIRE) -- Key Tronic Corporation (Nasdaq KTCC), a world class provider of manufacturing and design engineering services, today announced that it expects to begin manufacturing in the second half of 2025 for a market revolutionizing, innovative energy resilience technology provider. Key Tronic has been awarded the manufacturing of an industry leading, innovative energy resiliency prod ...

SPOKANE VALLEY, Wash., Jan. 24, 2025 (GLOBE NEWSWIRE) -- Key Tronic Corporation (Nasdaq: KTCC), announced today that it plans to report its results for the second quarter of fiscal 2025 after market close on February 4, 2025. Key Tronic will host a conference call to discuss its financial results at 2:00 PM Pacific (5:00 PM Eastern) on February 4, 2025. A broadcast of the conference call will be available at www.keytronic.com under “Investor Relations” or by calling 888-394-8218 or +1-313-209-4906 (Access C ...

Financial Performance - Key Tronic anticipates Q2 FY2025 revenue of approximately $114 million, below previous guidance, primarily due to unexpected component shortages, lower holiday production, and reduced customer demand, resulting in a $15 million revenue shortfall [2] - The company expects a net loss of $0.40-$0.48 per share for Q2 FY2025, also below previous guidance [2] - For Q3 FY2025, Key Tronic forecasts revenue between $115 million and $130 million, with earnings per diluted share ranging from $0.00 to $0.15 [4] Operational Challenges and Adjustments - The company is streamlining international and domestic operations, including further headcount reductions to enhance efficiency, building on similar actions from Q3 FY2024 [3] - Key Tronic has reduced inventories to align with current revenue levels [3] - The company expects to report approximately $1.0 million in write-offs of unamortized loan fees related to debt refinancing [2] Strategic Initiatives and Growth Opportunities - Key Tronic expects revenue and earnings recovery in Q3 FY2025 as strategic initiatives from previous quarters come to fruition [3] - The company continues to win new programs in aerospace systems and energy resiliency technology products [3] Company Overview - Key Tronic is a leading contract manufacturer offering value-added design and manufacturing services from facilities in the United States, Mexico, China, and Vietnam [6] - The company provides full engineering services, materials management, worldwide manufacturing facilities, assembly services, in-house testing, and worldwide distribution [6] - Key Tronic's customers include some of the world's leading original equipment manufacturers [6]

FORM 8-K CURRENT REPORT UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, DC 20549 Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 Date of report (Date of earliest event reported) January 24, 2025 Key Tronic Corporation (Exact name of registrant as specified in its charter) Washington 0-11559 91-0849125 (State or other jurisdiction of incorporation) (Commission File Number) (IRS Employer Identification No.) 4424 North Sullivan Road Spokane Valley, Washington 99216 (Address ...

SPOKANE VALLEY, Wash., Dec. 05, 2024 (GLOBE NEWSWIRE) -- Key Tronic Corporation (Nasdaq: KTCC), a provider of electronic manufacturing services (EMS), today announced that it entered into a new financing arrangement with the Bank of Montreal and Callodine Commercial Finance which extends and increases its access to working capital through December 2029. The combined financing agreement provides up to $143 million in availability, subject to the Company’s borrowing base and other limitations. The new credit ...

Financial Data and Key Metrics Changes - Total revenue for Q1 FY 2025 was $131.6 million, down from $150.1 million in Q1 FY 2024, impacted by customer-driven design and qualification delays amounting to approximately $9 million [6][10] - Gross margin improved to 10.1% from 7.2% year-over-year, while operating margins decreased to 3.4% from 22.2% [8] - Net income increased to $1.1 million or $0.10 per share compared to $0.3 million or $0.03 per share in the same period last year [10] - Inventory was reduced by approximately $31 million or 24% year-over-year, reflecting efforts to align inventory levels with current revenue [11] Business Line Data and Key Metrics Changes - Production in Mexico facilities increased by approximately 10% sequentially from the prior quarter, despite lower-than-anticipated revenue [7] - The company experienced significant improvements in operating efficiencies due to headcount reductions and favorable currency fluctuations [7][18] Market Data and Key Metrics Changes - The weakening of the Mexican peso positively impacted reported margins, contributing to improved profitability [18] - The company noted a strong pipeline of potential new business, particularly in manufacturing production equipment and vehicle lighting, indicating a trend towards onshoring and dual sourcing [19][20] Company Strategy and Development Direction - The company is focused on improving its balance sheet and operational efficiencies while strategically investing in production capabilities in Vietnam and the U.S. [14][16] - There is a sustained trend of wage increases in Mexico, prompting the company to rightsizing operations to remain cost-competitive [21] - The company aims to leverage its vertical manufacturing capabilities in Mexico to attract customers looking to nearshore their production processes [22] Management's Comments on Operating Environment and Future Outlook - Management expressed cautious optimism regarding demand recovery, with expectations for a slight uptick in production in the upcoming quarters [49] - The company anticipates continued improvements in operating efficiencies and a strong pipeline of potential new business, despite temporary disruptions in Q1 FY 2025 [28] Other Important Information - Total capital expenditures for Q1 FY 2025 were about $0.4 million, with expectations for the full year to be approximately $8 million to $10 million [14] - The company is actively looking to refinance some of its debt to improve liquidity and reduce interest expenses [55] Q&A Session Summary Question: What is the size of the three wins noted in the press release? - The first two wins are around $5 million each, and the third is just under that amount [30] Question: Can you provide more details on the circumstances of the three delayed programs? - The delays had a $9 million impact, with two programs resuming production in October and the third expected to ramp up by February or March [32][33] Question: Why is the guidance for the second fiscal quarter not higher despite the resumption of production? - The lower guidance is due to typical seasonal production slowdowns during the holidays, affecting overall shipments [48] Question: How does the company plan to improve its balance sheet? - The company aims to continue driving improvements in working capital and is looking to refinance some of its debt [55] Question: Is the capitalized variance expected to be of similar magnitude in the next quarter? - Yes, it is expected to be around $1 million [56] Question: What is the status of the large power generation customer with design issues? - The company is still in discussions with the customer, who may request more products in the next season [57] Question: Is the gross margin sustainable assuming the peso remains stable? - Management believes the gross margin can remain healthy, targeting a range of 9% to 10% [62]

SPOKANE VALLEY, Wash., Nov. 05, 2024 (GLOBE NEWSWIRE) -- Key Tronic Corporation (Nasdaq: KTCC), a provider of electronic manufacturing services (EMS), today 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 th ...

SPOKANE VALLEY, Wash., Oct. 24, 2024 (GLOBE NEWSWIRE) -- Key Tronic Corporation (Nasdaq: KTCC), announced today that it plans to report its results for the first quarter of fiscal 2025 after market close on November 5, 2024. Key Tronic will host a conference call to discuss its financial results at 2:00 PM Pacific (5:00 PM Eastern) on November 5, 2024. A broadcast of the conference call will be available at www.keytronic.com under “Investor Relations” or by calling 888-394-8218 or +1-313-209-4906 (Access Co ...

Key Tronic Corporation's (KTCC) fourth-quarter fiscal 2024 results reflected significant impacts of a cybersecurity incident that disrupted its operations, leading to mixed performance. The company faced notable challenges, including a sharp year-over-year decline in revenues and break-even earnings, stemming from its inability to fulfill orders during the quarter. However, strategic cost-cutting measures, including workforce reductions and favorable currency fluctuations, provided some relief. As the compa ...