SPOKANE VALLEY, WA -- Key Tronic guided for June quarter revenue of approximately $72 million, lower than previous expectations.

The company attributed the lower-than-anticipated revenue to a temporary reduction in production levels for a longstanding customer, and 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. 

The company's fiscal 2014 fourth quarter ended June 28.

"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.

"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 multinational 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 Aug. 19.

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