Key Tronic Corporation Announces Preliminary Results for the Fourth Quarter of Fiscal Year 2024
Key Tronic (Nasdaq: KTCC) announced preliminary results for Q4 FY2024, impacted by a cybersecurity incident on May 6, 2024. The incident caused disruptions at Mexico and U.S. sites, resulting in $2.3 million additional expenses and an estimated $15 million revenue loss. Key Tronic expects to report Q4 revenue of $125 million and a net loss of $0.00 per share, below previous guidance. The company anticipates a rebound in Q1 FY2025, projecting revenue between $140-$150 million and earnings of $0.10-$0.20 per diluted share. Operational efficiencies from headcount reductions and a favorable weakening of the Mexican Peso are expected to contribute to the recovery.
Key Tronic (Nasdaq: KTCC) ha annunciato i risultati preliminari per il Q4 FY2024, influenzati da un incidente di cybersecurity avvenuto il 6 maggio 2024. L'incidente ha causato interruzioni nei siti in Messico e negli Stati Uniti, comportando spese aggiuntive di 2,3 milioni di dollari e una perdita di fatturato stimata di 15 milioni di dollari. Key Tronic prevede di riportare un fatturato di 125 milioni di dollari per il Q4 e una perdita netta di 0,00 dollari per azione, al di sotto delle precedenti indicazioni. L'azienda prevede una ripresa nel Q1 FY2025, stimando un fatturato tra 140 e 150 milioni di dollari e un utile di 0,10-0,20 dollari per azione diluita. Efficienze operative dovute alla riduzione della forza lavoro e un favorevole indebolimento del peso messicano dovrebbero contribuire alla ripresa.
Key Tronic (Nasdaq: KTCC) anunció resultados preliminares para el Q4 FY2024, afectados por un incidente de ciberseguridad el 6 de mayo de 2024. El incidente causó interrupciones en los sitios de México y EE.UU., resultando en gastos adicionales de $2.3 millones y una pérdida de ingresos estimada de $15 millones. Key Tronic espera informar ingresos de $125 millones para el Q4 y una pérdida neta de $0.00 por acción, por debajo de la guía previa. La empresa anticipa una recuperación en el Q1 FY2025, proyectando ingresos entre $140 y $150 millones y ganancias de $0.10 a $0.20 por acción diluida. Se espera que las eficiencias operativas derivadas de reducciones de personal y un debilitamiento favorable del peso mexicano contribuyan a la recuperación.
Key Tronic (Nasdaq: KTCC)는 2024 회계연도 4분기 예비 결과를 발표했으며, 이는 2024년 5월 6일 발생한 사이버 보안 사고의 영향을 받았습니다. 이 사고는 멕시코와 미국의 사이트에서 중단을 초래하여 230만 달러의 추가 비용과 1500만 달러의 수익 손실이 발생했습니다. Key Tronic은 4분기 수익이 1억 2500만 달러와 주당 0.00 달러의 순손실을 보고할 것으로 예상하며, 이는 이전 가이던스보다 낮은 수치입니다. 회사는 2025 회계연도 1분기에 반등을 예상하며, 수익을 1억 4000만에서 1억 5000만 달러로 예상하고, 희석 주당 0.10-0.20 달러의 수익을 예측하고 있습니다. 인력 감소로 인한 운영 효율성과 멕시코 페소의 유리한 약세가 회복에 기여할 것으로 기대됩니다.
Key Tronic (Nasdaq: KTCC) a annoncé des résultats préliminaires pour le Q4 FY2024, affectés par un incident de cybersécurité survenu le 6 mai 2024. L'incident a causé des perturbations sur les sites au Mexique et aux États-Unis, entraînant des dépenses supplémentaires de 2,3 millions de dollars et une perte de revenus estimée à 15 millions de dollars. Key Tronic s'attend à rapporter un revenu de 125 millions de dollars pour le Q4 et une perte nette de 0,00 dollar par action, en dessous des prévisions précédentes. L'entreprise anticipe une reprise au Q1 FY2025, prévoyant des revenus compris entre 140 et 150 millions de dollars et des bénéfices de 0,10 à 0,20 dollar par action diluée. Des gains d'efficacité opérationnelle grâce à des réductions d'effectifs et une dévaluation favorable du peso mexicain devraient contribuer à la reprise.
Key Tronic (Nasdaq: KTCC) hat vorläufige Ergebnisse für das Q4 FY2024 bekannt gegeben, die durch einen Cyberangriff am 6. Mai 2024 beeinträchtigt wurden. Der Vorfall führte zu Störungen an Standorten in Mexiko und den USA, was zu zusätzlichen Kosten von 2,3 Millionen Dollar und einem voraussichtlichen Umsatzverlust von 15 Millionen Dollar führte. Key Tronic erwartet, Umsätze von 125 Millionen Dollar im Q4 und einen Nettoverlust von 0,00 Dollar pro Aktie zu berichten, was unter den vorherigen Prognosen liegt. Das Unternehmen rechnet mit einer Erholung im Q1 FY2025, mit einem prognostizierten Umsatz zwischen 140 und 150 Millionen Dollar und einem Gewinn von 0,10 bis 0,20 Dollar pro verwässerter Aktie. Betrieblichen Effizienzgewinne aus Stellenabbauten und eine günstige Schwächung des mexikanischen Peso werden voraussichtlich zur Erholung beitragen.
- Anticipated rebound in Q1 FY2025 with projected revenue of $140-$150 million
- Expected earnings of $0.10-$0.20 per diluted share in Q1 FY2025
- Operational efficiencies from headcount reductions announced in Q3 FY2024
- Favorable 10% weakening of Mexican Peso to US dollar
- Continued winning of new programs
- Reduction of inventories to align with current revenue levels
- Cybersecurity incident causing $2.3 million in additional expenses
- Estimated $15 million revenue loss in Q4 FY2024
- Q4 FY2024 revenue of $125 million, below previous guidance
- Net loss of $0.00 per share in Q4 FY2024, below previous guidance
Insights
Key Tronic's preliminary Q4 FY2024 results reveal significant challenges stemming from a cybersecurity incident. The estimated revenue of
Looking ahead, Key Tronic projects a rebound in Q1 FY2025, with revenue forecasted between
While the cybersecurity incident's impact is significant, the company's ability to recover
The cybersecurity incident at Key Tronic underscores the critical importance of robust IT security measures in manufacturing operations. The disruption to business applications, particularly in financial and operating reporting systems, highlights potential vulnerabilities in the company's digital infrastructure.
Key Tronic's response, including the deployment of new IT infrastructure and engagement of cybersecurity experts, is a step in the right direction. However, the
Moving forward, investors should look for detailed disclosure on:
- The nature of the cybersecurity incident and how it was resolved
- Improvements made to prevent similar incidents in the future
- Any potential long-term impacts on customer relationships or data security
The incident serves as a stark reminder of the financial and operational risks posed by cyber threats in the manufacturing sector, emphasizing the need for continuous investment in cybersecurity measures.
Key Tronic's Q4 FY2024 results highlight significant supply chain disruptions due to the cybersecurity incident. The estimated
However, the company's statement that most of these orders are recoverable and expected to be fulfilled in FY2025 is encouraging. This suggests that Key Tronic has maintained customer confidence despite the disruption. The ability to retain these orders will be important for the projected Q1 FY2025 rebound.
Key Tronic's efforts to reduce inventories to align with current revenue levels demonstrate a proactive approach to supply chain management. This, coupled with operational efficiencies from headcount reductions and the favorable exchange rate with the Mexican Peso, could lead to improved margins in the coming quarters.
Investors should monitor:
- The pace of order recovery and fulfillment in early FY2025
- Any changes in customer relationships or new program wins
- Progress in inventory reduction and its impact on cash flow
The company's ability to navigate these supply chain challenges while winning new programs will be critical for long-term growth and stability.
SPOKANE VALLEY, Wash., Aug. 02, 2024 (GLOBE NEWSWIRE) -- Key Tronic Corporation (Nasdaq: KTCC), a provider of electronic manufacturing services (EMS), today announced its preliminary results for the fourth quarter of fiscal year ended June 29, 2024.
As previously disclosed, Key Tronic detected a cybersecurity incident on May 6, 2024 that caused disruptions and limited access to portions of the Company’s business applications supporting operations and corporate functions, including financial and operating reporting systems, at its Mexico and U.S. sites during the fourth quarter of fiscal 2024.
During the disruption of business, Key Tronic continued to pay wages in accordance with statutory requirements. The Company also deployed new IT-related infrastructure and engaged cyber security experts to remediate the incident. Due to this event, the Company incurred approximately
As a result, Key Tronic expects to report revenue of approximately
Key Tronic expects revenue and earnings to rebound in the first quarter of fiscal year 2025 as production has resumed across its facilities. In addition, the Company is beginning to realize operational efficiencies as a result of headcount reductions announced in the third quarter of fiscal year 2024, coupled with a favorable weakening in the Mexican Peso to the US dollar of approximately
For the first quarter of 2025, the Company expects to report revenue in the range of
The revenue and earnings estimates for the fourth quarter of fiscal 2024, and the first quarter of fiscal 2025, and the finalization of financial results for the fourth quarter of 2024, are subject to completion of the Company’s quarterly close and review procedures which are still ongoing. The Company plans to report its complete results and host its earnings conference call for the fourth quarter of fiscal 2024 on August 13, 2024. Details for the conference call have been announced in a separate press release.
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, China and Vietnam. 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. For more information about Key Tronic visit: www.keytronic.com.
Forward-Looking Statements
Some of the statements in this press release are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements include, but are not limited to those including such words as aims, anticipates, believes, continues, estimates, expects, hopes, intends, plans, predicts, projects, targets, will, or would, similar verbs, or nouns corresponding to such verbs, which may be forward looking. Forward-looking statements also include other passages that are relevant to expected future events, performances, and actions or that can only be fully evaluated by events that will occur in the future. Forward-looking statements in this release include, without limitation, the Company’s statements regarding its expectations with respect to financial conditions and results, including revenue and earnings, including as a result of the impact of the cybersecurity incident, cost savings from workforce reduction, demand for certain products and the effectiveness of some of our programs, business from customers and programs, and impacts from operational streamlining and efficiencies. There are many factors, risks and uncertainties that could cause actual results to differ materially from those predicted or projected in forward-looking statements, including but not limited to: the completion of the Company’s investigation regarding the cybersecurity incident, including the possibility that containment and remediation may not be successful; the improper use of exfiltrated information from the cybersecurity incident and related regulatory proceedings or litigation; the future of the global economic environment and its impact on our customers and suppliers; the availability of components from the supply chain; the availability of a healthy workforce; the accuracy of suppliers’ and customers’ forecasts; development and success of customers’ programs and products; timing and effectiveness of ramping of new programs; success of new-product introductions; the risk of legal proceedings or governmental investigations relating to the subject of the internal investigation by the Company’s Audit Committee and related or other unrelated matters; acquisitions or divestitures of operations or facilities; technology advances; changes in pricing policies by the Company, its competitors, customers or suppliers; impact of new governmental legislation and regulation, including tax reform, tariffs and related activities, such trade negotiations and other risks; and other factors, risks, and uncertainties detailed from time to time in the Company’s SEC filings.
| CONTACTS: | Anthony G. Voorhees | Michael Newman |
| Chief Financial Officer | Investor Relations | |
| Key Tronic Corporation | StreetConnect | |
| (509) 927-5345 | (206) 729-3625 |
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