Key Tronic reports slight decrease in net income for its first fiscal quarter

Key Tronic Corp. reported a slight decrease in net income for the first quarter of its fiscal year 2020.

The Spokane Valley-based electronic manufacturing services company reported net income was $1.55 million, or 14 cents per share, for the quarter ending Sept. 30, compared to net income of $1.59 million, or 15 cents per share, for its first fiscal quarter of 2019.

The company reported a revenue loss of $105.3 million in the quarter ending Sept. 30, compared to $127.5 million during its first fiscal quarter of 2019, attributing the loss to “workload balancing challenges that stemmed from production delays and increased demand for sheet metals from new and existing customers,” according to a company statement.

Key Tronic indicated its customers have accelerated plans to transition from facilities in China to the company’s facilities in Mexico and Vietnam amid trade tensions between the United States and China.

The company also plans to invest in new sheet metal capacity in its facilities to meet demand and gain new business.

“While this transition and increasing demands in sheet metals caused delays in production during the first quarter, we see this trend as an important and very positive sign over the longer term as customers see the increasing advantages of our North American and Vietnam-based production,” Craig Gates, Key Tronic president and CEO, said in a statement.

Keytronic is a contract manufacturer with facilities in the United States, Mexico, Canada and Vietnam.