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]
Key Tronic Corporation Announces Preliminary Results for the Second Quarter of Fiscal Year 2025