Key Tronic Corporation Announces Preliminary Results for the Second Quarter of Fiscal Year 2023
SPOKANE VALLEY, Wash.– Key Tronic Corporation (Nasdaq: KTCC), a provider of electronic manufacturing services (EMS), today announced its preliminary results for the three months ended December 31, 2022.
For the second quarter of fiscal 2023, Key Tronic expects to report revenue of approximately $123.5 million and earnings of approximately $0.04 to $0.07 per share, which includes $2.7 million in insurance gains on equipment storm damage in its Arkansas facility and related operational losses until replacement equipment could be placed.
The lower than expected revenue reflects a six-week delay in starting production for the previously announced program with a leading power equipment company. This delay lowered revenue by approximately $20 million for the second quarter of fiscal 2023, but production for this program is currently underway and increasing in the third quarter.
At the same time, demand from many of our new and existing customers continued to increase, resulting in a backlog increasing to record levels. We are also seeing improvement in the global supply issues for certain components that have severely limited our production in recent periods.
For the third quarter of fiscal 2023, Key Tronic expects to report revenue in the range of $160 million to $170 million and earnings in the range of $0.15 to $0.25 per diluted share.
The revenue and earnings estimates for the second and third quarters of fiscal 2023, and the finalization of financial results for the second quarter of 2023, 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 second quarter of fiscal 2023 on January 31, 2023. Details for the conference call will be announced in a separate press release.
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.