Key Tronic Corporation (KTCC) has reported 14.49 percent fall in profit for the quarter ended Dec. 31, 2016. The company has earned $1.53 million, or $0.14 a share in the quarter, compared with $1.79 million, or $0.16 a share for the same period last year. Revenue during the quarter went up marginally by 1.82 percent to $118.52 million from $116.40 million in the previous year period. Gross margin for the quarter expanded 28 basis points over the previous year period to 8.11 percent. Total expenses were 97.85 percent of quarterly revenues, down from 97.94 percent for the same period last year. This has led to an improvement of 8 basis points in operating margin to 2.15 percent.
Operating income for the quarter was $2.55 million, compared with $2.40 million in the previous year period.
“During the second quarter of fiscal 2017, our new programs continued to ramp, more than offsetting a modest slowdown in demand from a few longstanding customers, which is consistent with EMS industry-wide experience,” said Craig Gates, President and Chief Executive Officer. “At the same time, we captured significant new business from other EMS competitors, including established programs that will begin generating revenue before the end of fiscal 2017.”
For the third-quarter, Key Tronic Corp forecasts revenue to be in the range of $115 million to $120 million. The company expects diluted earnings per share to be in the range of $0.11 to $0.16 for the third-quarter.
Working capital increases
Key Tronic Corporation has recorded an increase in the working capital over the last year. It stood at $97.72 million as at Dec. 31, 2016, up 7.44 percent or $6.77 million from $90.95 million on Dec. 26, 2015. Current ratio was at 2.24 as on Dec. 31, 2016, up from 2.09 on Dec. 26, 2015. Cash conversion cycle (CCC) has decreased to 42 days for the quarter from 81 days for the last year period. Days sales outstanding went up to 54 days for the quarter compared with 53 days for the same period last year.
Days inventory outstanding has decreased to 41 days for the quarter compared with 84 days for the previous year period. At the same time, days payable outstanding went down to 53 days for the quarter from 56 for the same period last year.
Debt moves up
Key Tronic Corporation has witnessed an increase in total debt over the last one year. It stood at $46.46 million as on Dec. 31, 2016, up 12.20 percent or $5.05 million from $41.41 million on Dec. 26, 2015. Total debt was 19.81 percent of total assets as on Dec. 31, 2016, compared with 18.17 percent on Dec. 26, 2015. Debt to equity ratio was at 0.43 as on Dec. 31, 2016, up from 0.41 as on Dec. 26, 2015. Interest coverage ratio improved to 4.61 for the quarter from 4.61 for the same period last year. Disclaimer: Please note that this is an auto-generated article. IRIS does not guarantee the accuracy, adequacy or completeness of any information and is not responsible for any errors or omissions or for the results obtained from the use of such information. IRIS especially states that it has no financial liability whatsoever to any user on account of the use of information provided on its website. For queries contact: editor@irisindia.net
