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Key Tronic Corp. (KTCC) Announces Increased Second Quarter Guidance

Dec. 2, 2009 (Business Wire) — Key Tronic Corporation (Nasdaq: KTCC), a provider of electronic manufacturing services (EMS), today announced revised guidance for the quarter ending December 26, 2009.

For the second quarter of fiscal 2010, Key Tronic expects to report total revenue in the range of $42 million to $44 million, up from previous estimates of $38 million to $43 million.

The higher than anticipated revenue is expected to result in improved factory utilization and manufacturing efficiencies. As a result, net income for the second quarter of fiscal 2010 is expected to be in the range of $0.10 to $0.13 per share, up significantly from the previous estimate of $0.02 to $0.05 per share.

“Based on preliminary results for the quarter to date and forecasts for the remainder of the second quarter of fiscal 2010, we are seeing stronger than anticipated demand from many of our customers in a wide variety of industries, including our new customer programs which are ramping up faster than projected,” said Craig Gates, President and Chief Executive Officer. “The significant increase in earnings guidance reflects both our stronger than expected revenue and our sustained efforts to enhance our operating efficiency.”

The Company expects to report its complete results for the second quarter of fiscal 2010 on January 26, 2010.

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 and China. 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:

Some of the statements in this press release are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements include all passages containing verbs such as ‘aims, anticipates, believes, estimates, expects, hopes, intends, plans, predicts, projects or targets’ or nouns corresponding to such verbs. Forward-looking statements also include other passages that are primarily relevant to expected future events or that can only be fully evaluated by events that will occur in the future. Forward-looking statements in this release include, without limitation, the Company’s statements regarding its expectations with respect to quarterly revenue and earnings during fiscal 2010. There are many factors, risks and uncertainties that could cause actual results to differ materially from those predicted or projected in forward-looking statements, including but not limited to the future of the global economic environment and its impact on our customers and suppliers, the accuracy of customers’ forecasts; success of customers’ programs; timing of new programs; success of new-product introductions; acquisitions or divestitures of operations or facilities; technology advances; changes in pricing policies by the Company, its competitors, customers or suppliers; and the other risks and uncertainties detailed from time to time in the Company’s SEC filings.

Thursday, December 3rd, 2009 Uncategorized
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