 Continued New Program Wins; Expecting Continued Revenue Growth in the First QuarterSPOKANE VALLEY, Wash., Aug. 04, 2020 GLOBE NEWSWIRE -- Key Tronic Corporation Nasdaq: KTCC, a provider of electronic manufacturing services EMS, today announced its results for the quarter and the year ended June 27, 2020. For the fourth quarter of fiscal year 2020, Keytronic reported total revenue of 116.0 million, up 10 from 105.6 million in the same period of fiscal year 2019. During the fourth quarter of fiscal year 2020, the Companys revenue was significantly constrained by the temporary shutdown of its facilities in Juarez by the Mexican government due to the COVID-19 pandemic and associated delays in production. For the full year of fiscal 2020, total revenue was 449.5 million, compared to 464.0 million in the same period of fiscal year 2019. During the fourth quarter of fiscal year 2020, the Company incurred a variety of additional costs caused by the COVID-19 crisis totaling approximately 2.2 million or 0.16 per share. These expenses are related to the temporary shutdown and restart of the Companys Juarez facility, as well as preventative measures and equipment for employees at all of its facilities in the US, Mexico, China and Vietnam.The pandemics adverse impact on revenue and expenses reduced the Companys margins. For the fourth quarter of fiscal year 2020, gross margin was 7.4 and operating margin was 0.9, compared to gross margin of 7.9 and an operating margin of 1.3, in the same period of fiscal 2019.For the fourth quarter of fiscal year 2020, net income was 1.5 million or 0.14 per share, compared to 0.8 million or 0.08 per share for the same period of fiscal year 2019. Earnings for the fourth quarter of fiscal year 2020 included a tax benefit from releasing a portion of the Companys allowance on research and development credits taken in previous years of 1.3 million or 0.12 per share. For the full year of fiscal year 2020, net income was 4.8 million or 0.44 per share, compared to a net loss of 8.0 million or 0.74 per share for fiscal year 2019. Excluding the goodwill and intangibles write down in fiscal 2019, the Company would have reported net income of 4.5 million or 0.42 per for fiscal year 2019.During the past fiscal year, we overcame a number of powerful global headwinds, including component shortages, trade disputes and the COVID-19 crisis, but we see the favorable trend of contract manufacturing returning to North America accelerating, said Craig Gates, President and Chief Executive Officer. On balance, the effect of the pandemic on our customers demand was a net positive during the second half of fiscal 2020. While some of our customers, particularly in the gaming industry, have seen large decreases in their demand, others have significantly increased their demand, including programs for healthcare and home-oriented consumer products and exercise equipment.During the fourth quarter of fiscal year 2020, we won new programs involving sanitizer dispensing, automotive controllers, oil and gas drilling, wireless security and personal healthcare protective equipment. A large program that we announced in the third quarter, which when fully ramped is anticipated to contribute 100 million in annual revenue, got underway in the fourth quarter and is expected to contribute to revenue in fiscal 2021.As we enter fiscal 2021, uncertainty remains around the continuing impact of COVID-19 and potential future disruptions to our production facilities and we continue to focus on protecting the health of all of our employees by adhering to current health guidelines. Nevertheless, thanks to the dedication and sacrifices of our employees, we enter the year with increasingly positive momentum. We continue to invest in new capacity and remain optimistic about our long-term opportunities for growth. Business OutlookFor the first quarter of fiscal year 2021, Keytronic expects to report revenue in the range of 118 million to 125 million, and earnings in the range of 0.18 to 0.25 per diluted share. These expected results assume an effective tax rate of 20 in the quarter. Keytronic is working closely with its customers, key suppliers and employees to minimize effects of delays attributable to the continued global pandemic. While the Companys facilities in the US, Mexico, China and Vietnam currently operating and rigorously following current health guidelines, uncertainty as to the possibility of future temporary closures, customer demand and costs, and future supply chain disruptions during the rapidly changing COVID-19 environment could significantly impact operations in coming periods. Due to the heightened risks associated with the above, we may issue updated guidance during the upcoming quarter.Conference CallKeytronic will host a conference call to discuss its financial results at 2:00 PM Pacific 5:00 PM Eastern on August 4, 2020. A broadcast of the conference call will be available at under Investor Relations or by calling 800-353-6461 or 1-334-323-0501 Access Code: 9895228. A replay will be available by calling 888-203-1112 or 1-719-457-0820 Access Code: 9895228. About Keytronic Keytronic is a leading contract manufacturer offering value-added design and manufacturing services from its facilities in the United States, Mexico, China and Vietnam. The Company provides its customers full engineering services, materials management, worldwide manufacturing facilities, assembly services, in-house testing, and worldwide distribution. Its customers include some of the worlds leading original equipment manufacturers. For more information about Keytronic visit: of the statements in this press release are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements include, but are not limited to those including such word as aims, anticipates, believes, estimates, expects, hopes, intends, plans, predicts, projects, targets, or will, similar verbs, or nouns corresponding to such verbs, which may be forward looking. Forward-looking statements also include other passages that are relevant to expected future events, performances, and actions or that can only be fully evaluated by events that will occur in the future. Forward-looking statements in this release include, without limitation, the Companys statements regarding its expectations with respect to financial conditions and results, including revenue and earnings during periods of fiscal year 2021, risks of manufacturing supply chain and operational disruptions and relating to the health of employees due to COVID-19 health pandemic, demand for certain products and the effectiveness of some of our programs, effects of recent tax reform and tariff measures and trade tensions, business from new customers and programs, improvement of supply chain delivery and impacts from legal proceedings and operational streamlining. There are many factors, risks and uncertainties that could cause actual results to differ materially from those predicted or projected in forward-looking statements, including but not limited to: the future of the global economic environment and its impact on our customers and suppliers, particularly during the COVID-19 health crisis; the availability of components from the supply chain; the availability of a healthy workforce; the accuracy of suppliers and customers forecasts; development and success of customers programs and products; timing and effectiveness of ramping of new programs; success of new-product introductions; acquisitions or divestitures of operations or facilities; technology advances; changes in pricing policies by the Company, its competitors, customers or suppliers; impact of new governmental legislation and regulation, including tax reform, tariffs and related activities, such trade negotiations and other risks including those related to COVID-19 response; and other factors, risks, and uncertainties detailed from time to time in the Companys SEC filings. KEYTRONIC CORPORATION AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF INCOME In thousands, except per share amounts Unaudited Three Months Ended Twelve Months Ended June 27, 2020 June 29, 2019 June 27, 2020 June 29, 2019 Net sales116,018 105,581 449,480 464,044 Cost of sales107,412 97,200 414,231 429,443 Gross profit8,606 8,381 35,249 34,601 Research, development and engineering expenses2,262 1,600 7,391 6,555 Selling, general and administrative expenses5,317 5,372 21,030 21,556 Impairment of goodwill and intangibles 12,448 Total operating expenses7,579 6,972 28,421 40,559 Operating income loss1,027 1,409 6,828 5,958 Interest expense, net521 677 2,509 2,782 Income loss before income taxes506 732 4,319 8,740 Income tax benefit966 85 439 758 Net income loss1,472 817 4,758 7,982 Net income loss per share Basic0.14 0.08 0.44 0.74 Weighted average shares outstanding Basic10,760 10,760 10,760 10,760 Net income loss per share Diluted0.14 0.08 0.44 0. 