Key Tronic Corp (KTCC) Provides Prelim. Q2 Results

Key Tronic Corp (NASDAQ: KTCC) announced its preliminary results for the three months ended June 28, 2014.

The Company currently expects to report revenue of approximately $72 million for the fourth quarter of fiscal 2014. The lower than anticipated revenue primarily reflects a temporary reduction in production levels for a longstanding customer, which are expected to return to prior levels in the first quarter of fiscal 2015. In addition, there was a delay in the commencement of production for a significant new program due to the timing of certain agency approvals. Revenue from this new program is expected to start being recognized in the first quarter of fiscal 2015. As a result, earnings for the fourth quarter of fiscal 2014 are expected to be in the range of $ $0.10 to $0.12 per share.

"While the unanticipated revenue shortfall in the fourth quarter was disappointing, we expect to see a return to sequential growth in the first quarter of fiscal 2015 as our new programs continue to ramp up," said Craig Gates, President and Chief Executive Officer. "As we also announced today, the planned acquisition of CDR Manufacturing during the first quarter of fiscal 2015, if consummated, will represent a major step forward for Key Tronic, significantly expanding our printed circuit board assembly capabilities and extending our customer base with new multi-national companies."

The Company plans to announce its complete fourth quarter and year end results for fiscal 2014, and more specific guidance for the first quarter of fiscal 2015, on August 19, 2014.

You May Also Be Interested In

• Growth isn't weak enough to truly undercut inflation pressures - BMO
• Wipro (WIT) Tops Q1 EPS by 1c
• Warren Buffet's Berkshire stock target raised at UBS into earnings