SPOKANE VALLEY, WA – EMS provider Key Tronic reported fiscal third quarter revenue of $108.4 million, down 4.6% year-over-year.

For the quarter ended Mar. 31, net income was $600,000, a decrease of 40% compared to the same period last year.

For the first nine months of fiscal 2018, revenue was $329.3 million, down 5.7% year-over-year. Net income was $900,000, compared to net income of $4.3 million in the fiscal third quarter of 2017.

“Most of our new programs continued to ramp steadily during the third quarter of fiscal 2018, though our productivity was adversely impacted by industry-wide shortages in key components and an unexpected delay from one large new customer,” said Craig Gates, president and CEO. “At the same time, we have continued to win significant new business from both EMS competitors and from existing customers, including five new programs involving gaming equipment, medical devices and a consumer security product.

“Moving into the fourth quarter, although we continue to see significant supply chain issues, we expect significant growth in revenue and earnings. A large longstanding customer is significantly increasing its demand; our new programs continue to ramp, and we have a strong pipeline of potential new business. In preparation for future growth, we continue to invest in new equipment and processes to be more productive with less labor content in our Mexico facilities, and we’re expanding and enhancing our highly profitable US facilities.”

For the fiscal fourth quarter, the company expects revenue in the range of $112 million to $117 million.

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