We would like to highlight Key Tronic Corp. (NASDAQ: KTCC). The company is principally engaged in electronic manufacturing services (EMS) and consumer related products manufacturing for original equipment manufacturers (OEMs). The Company also manufactures keyboards and other input devices for personal computers primarily in standard layouts that can be sold directly from inventory on hand. Key Tronic is an independent provider of product realization services for OEMs in a range of industries.
In the company’s news yesterday,
Key Tronic Corporation (KTCC) reported fourth quarter and fiscal 2008 year-end financial results after the closing bell. Revenues rose 17% for the quarter to $57.3 million, compared to $49.2 million in Q4 2007. Net income for the quarter was $2.6 million, or 25 cents per share, compared to $2.7 million, or 26 cents per share, in the prior year.
Last year’s Q4 net income included a gain of $1.5 million, or 14 cents per share, on the sale of a facility. On a comparable basis, excluding the one-time gain, operational net income increased 117% in the fourth quarter. On April 29, 2008, the company guided for Q4 earnings of 10-15 cents per share on $50-$54 million in revenues. For fiscal 2008, the company earned $5.6 million, or 54 cents per share fully diluted, on revenues of $204.1 million. In fiscal 2007, Key Tronic earned 51 cents per diluted share on $201.7 million.
“We are pleased with our performance for the fourth quarter and for the year,” said Jack Oehlke, President and Chief Executive Officer. “Our year-over-year revenue growth was driven by increased demand from new customer programs, which continue to ramp up. For the fourth quarter and for the year, we achieved the highest revenue since implementing our EMS strategy. In the fourth quarter, we saw very strong year-over-year revenue growth and the strongest gross margins we’ve seen in many years.
“During the fourth quarter, we continued to diversify our customer portfolio across a wide range of industries, winning new customers involved in telecommunications, industrial equipment, fuel cell technology and consumer products. While the industry confronts the challenging economic environment, our sustained investment in our world-class facilities in Mexico provides us with strong competitive advantages in a time of rising labor, fuel and transportation costs. We believe Key Tronic is increasingly well-positioned to pursue and win new opportunities for profitable growth in fiscal 2009 and beyond.”
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Forward-Looking Statement:
This release may contain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. All forward-looking statements are inherently uncertain as they are based on current expectations and assumptions concerning future events or future performance of the company. Readers are cautioned not to place undue reliance on these forward-looking statements, which are only predictions and speak only as of the date hereof. Risks and uncertainties applicable to the company and its business could cause the company's actual results to differ materially from those indicated in any forward-looking statements.
