Key Tronic Cuts Q1 Outlook

(RTTNews) - Key Tronic Corp. (KTCC) said Tuesday that excluding the contribution of CDR Manufacturing, Inc. that was acquired on September 3, the company expects to report revenue of about $75 million for the first quarter of fiscal 2015, which is below its previous guidance of $76 million to $82 million.

The lower revenue mainly reflects a larger than anticipated reduction in production levels for a longstanding customer.

Including CDR's contribution in September, the company expects to report first quarter revenue of about $86 million.

Te company also said it expects second quarter revenue to be about $105 million to $115 million.

During the first quarter, the company had an unfavorable product mix that caused higher material costs and inefficiencies associated with ramping production of a new product in a shorter time period than originally planned that resulted in higher than expected operating expenses. Those items had a negative impact on earnings of $1.8 million or $0.17 per share. In addition, transaction and integration costs related to the CDR acquisition had a negative impact on earnings of $0.7 million or $0.06 per share. As a result, the company expects a loss for the first quarter in the range of $0.14 to $0.17 per share. The company previously forecast first quarter earnings of $0.13 to $0.20 per share.

The company plans to announce its complete results for the first quarter on November 4.