Key Tronic Corporation Announces Preliminary Results for the Fourth Quarter of Fiscal Year 2024
SPOKANE VALLEY, Wash. (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 $2.3 million of additional expenses and believes that it lost approximately $15 million of revenue during the fourth quarter. Most of these orders are recoverable and are expected to be fulfilled in fiscal year 2025. Partially offsetting these additional expenses was an insurance gain in the amount of $0.7 million that was also recorded during the quarter.
As a result, Key Tronic expects to report revenue of approximately $125 million for the fourth quarter of fiscal 2024, and a net loss of approximately $0.00 per share, both of which are below previous guidance.
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 10% that occurred during June. At the same time, Key Tronic continues to win new programs and reduce inventories to be more in line with current revenue levels.
For the first quarter of 2025, the Company expects to report revenue in the range of $140 million to $150 million and earnings in the range of $0.10 to $0.20 per diluted share.
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.
