Keytronic Corporation Announces Preliminary Results For the First Quarter of Fiscal Year 2024
- Key Tronic expects to report revenue of $147.7 million for Q1 2024, in line with expectations
- Workforce reduction expected to save over $5 million annually
- Gradual improvement in gross margins
- Company continues to win significant new programs and reduce inventories
- Earnings of $0.02 per share for Q1 2024 are below expectations
- Unanticipated severance costs of $0.6 million affecting earnings
- Production for a program with a leading power equipment company delayed to fiscal 2025
SPOKANE VALLEY, Wash., Oct. 24, 2023 (GLOBE NEWSWIRE) -- Key Tronic Corporation (Nasdaq: KTCC), a provider of electronic manufacturing services (EMS), today announced its preliminary results for the three months ended September 30, 2023.
For the first quarter of fiscal 2024, Keytronic expects to report revenue of approximately
The lower than expected earnings are primarily a result of unanticipated severance costs of
Keytronic also continues to be adversely impacted by the strength of the Mexican Peso and high interest expense, though we are seeing some gradual improvement with gross margins. At the same time, we continue to win significant new programs and reduce inventories to be more in line with current revenue levels.
For the second quarter of fiscal 2024, the Company expects to report revenue in the range of
The revenue and earnings estimates for the first and second quarters of fiscal 2024, and the finalization of financial results for the first 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 first quarter of fiscal 2024 on October 31, 2023. Details for the conference call have been announced in a separate press release.
About Keytronic
Keytronic 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 Keytronic 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, or will, 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, demand for certain products and the effectiveness of some of our programs, business from customers and programs, and impacts from operational streamlining. 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 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: | Brett Larsen | Michael Newman |
| Chief Financial Officer | Investor Relations | |
| Key Tronic Corporation | StreetConnect | |
| (509) 927-5500 | (206) 729-3625 |
FAQ
What is Key Tronic's expected revenue for Q1 2024?
What is the reason for the lower than expected earnings?
What is the expected impact of the workforce reduction?
Is Key Tronic seeing any improvement in gross margins?
What is the impact of the Mexican Peso and high interest expense on Key Tronic?
What are the revenue and earnings estimates for Q2 2024?
When will Key Tronic release its complete results for Q1 2024?
