Key Tronic announces Q1 results
Nov 01, 2006
Strong year-over-year revenue and earnings growth; improved operating efficiencies; preparing for new programs
Key Tronic Corporation (Nasdaq:KTCC) announced its results for the quarter ended September 30, 2006.
For the first quarter of fiscal 2007, Key Tronic reported total revenue of $55.5 million, up 25% from $44.3 million in the first quarter of fiscal 2006. Net income for the first quarter of fiscal 2007 was $1.4 million or $0.14 per diluted share, up 100% from $0.7 million or $0.07 per diluted share for the first quarter of fiscal 2006.
For the first quarter of fiscal 2007, the Company's gross margin was 9.5%, up from 8.7% for the first quarter of fiscal 2006. The increase reflects improved production efficiencies from higher factory utilization. Results for the first quarter of fiscal 2007 included a charge of approximately $0.5 million, or $0.05 per diluted share, related to due diligence costs and expenses incurred in connection with a potential acquisition that the Company decided not to complete.
"During the first quarter of 2007, we saw revenue growth from most of our customers and we were pleased with our improved operating efficiencies and profitability," said Jack Oehlke, President and Chief Executive Officer. "At the same time, we have expanded our production capacity and support infrastructure in preparation for programs coming on line. We are currently completing our due diligence on the potential purchase of an additional building in Juarez which will replace a leased building."