Key Tronic Corporation Announces Fourth Quarter and Year End Results
Tuesday August 23, 4:01 pm ET
Year-over-Year Revenue up 36%
Continued Strong Revenue and Earnings Growth for the Quarter
SPOKANE, Wash.--(BUSINESS WIRE)--Aug. 23, 2005--Key Tronic Corporation (Nasdaq:KTCC - News), a provider of electronic manufacturing services (EMS), today announced its results for the quarter and fiscal year ended July 2, 2005.
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For the fourth quarter of fiscal 2005, Key Tronic reported total revenue of $53.2 million, up 20% from $44.4 million for the fourth quarter of fiscal 2004 and up 7% from $49.7 million in the previous quarter. For the full year of fiscal 2005, total revenue was $202.9 million, up 36% from $148.9 million for fiscal 2004.
Net income for the fourth quarter of fiscal 2005 was $2.8 million or $0.28 per diluted share, up from $265,000 or $0.03 per share for the fourth quarter of fiscal 2004 and up from $852,000 or $0.09 per share for the previous quarter. The results for the fourth quarter of fiscal 2005 included a gain on life insurance proceeds paid on policies insuring a former executive and a foreign tax benefit totaling approximately $1.3 million or $0.13 per share. For the full year of fiscal 2005, net income was $4.4 million or $0.44 per diluted share, up from $110,000 or $0.01 per share for fiscal 2004.
"We are pleased with our strong sales growth and improved production efficiencies which drove increased operating income and earnings in the fourth quarter and throughout fiscal 2005," said Jack Oehlke, President and Chief Executive Officer. "During the fourth quarter, our growth was driven by increased production on programs for both established and new customers from a wide range of industries, including telecommunications, home safety, toys and specialty printers and components. We also completed the purchase of a new facility in Juarez, Mexico, and shifted our operations in Las Cruces, New Mexico, to Juarez. This consolidation is expected to provide future operating efficiencies. The Las Cruces real estate is now being held for sale."
"For the year, we executed our strategy and surpassed the average growth rate and margins for our industry. We also continued to broaden our customer base by winning new programs for hospital equipment, medical technology and consumer electronics, which are expected to get underway in coming periods. Moving into fiscal 2006, we anticipate our revenue from some existing programs will decline, but we continue to pursue new programs and focus on improving operating efficiencies, controlling costs and maintaining profitability. Our reputation as a strong competitor for EMS business continues to grow and we are increasingly well-positioned to capitalize on the long-term opportunities ahead."
In the first quarter of fiscal 2006, the Company expects revenue in the range of $42 million to $47 million and earnings between $0.06 and $0.10 per share
