SPOKANE VALLEY, WA -- Key Tronic today announced December quarter net income rose 83% year-over-year to $3.2 million on a big jump in revenue.

The electronics manufacturing services provider said fiscal second quarter revenue rose 38% from last year to $84.5 million.

For the quarter, gross margin was 8% and operating margin was 3%, down from 9% and 3%, respectively, in 2011. In the third quarter, the company expects to see its gross margin increase to around 9%.

“We’re very pleased with our strong growth in revenue and earnings for the quarter, driven primarily by the rapid production ramp up for new customer programs,” said president and chief executive Craig Gates. “During the quarter, we achieved the highest quarterly revenue in Key Tronic’s history and significantly increased our operating efficiencies from recent quarters. We also continued to diversify our future revenue base by winning new programs involving irrigation equipment, gaming devices, electric transportation and military equipment.

For the March quarter, the EMS company expects to revenue of $92 million to $97 million. “We expect continued strong growth in revenue and earnings," Gates said. "As a result of the increasing recognition of our unique combination of world-class engineering, global logistics and cost-effective production, we’re capturing market share from many of our competitors.”