The following is a summary of the Key Tronic Corporation (KTCC) Q3 2024 Earnings Call Transcript:

Financial Performance:

• Key Tronic reported Q3 2024 revenue of $140.5 million, a decrease from Q3 2023 due to harsh winter weather halting operations.

• Gross margin stood at 5.8% with an operating margin loss of 0.4% for Q3 2024.

• The company experienced a net loss of $2.2 million, or $0.21 per share, compared to a net income in the same period of 2023.

• Severance costs of $3.7 million were incurred with workforce reductions in Mexico.

• The company successfully reduced its inventory by $39 million, indicating better component availability.

Business Progress:

• Despite workforce reduction, the expected annual savings would be more than $10 million.

• New company programs have been secured, worth up to $33 million across various sectors.

• Focus is shifting towards higher volume manufacturing while handling lower-volume products at different sites.

• Investment plans are underway to upgrade production equipment at US and Vietnam locations.

• A restructuring of operations is taking place to manage costs and cater to customer demands better.

• A promising backlog of customer pipeline and new quotes suggests positive business progress.

• Key Tronic predicts a revenue between $135 million to $145 million with net income of $0.03 to $0.10 per share for Q4 2024.

More details: Key Tronic IR

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