Strategic Initiatives and Operational Improvements
Key Tronic has made strategic cost-saving initiatives and operational adjustments, resulting in improved gross margin from 6.2% in the previous quarter to 8.4% in this quarter.
Debt Reduction and Cash Flow Management
The company reduced total liabilities by $21.8 million or 9% from a year ago and generated approximately $7.6 million in cash flow from operations, allowing a debt reduction of approximately $12 million year-over-year.
New Production and Facility Expansion
Key Tronic opened a new technology and R&D location in Arkansas and doubled its manufacturing capacity in Vietnam, positioning itself for future growth.
Consigned Materials Program Potential
The new consigned materials program, expected to grow to over $20 million in annual revenue, could improve profitability due to its impact on margins.