KTCC - Earnings call transcript Q3 2019

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Operator

Good day, and welcome to the Key Tronic Third Quarter Fiscal 2019 Conference Call. Today's conference is being recorded. At this time, I would like to turn the conference over to Mr. Brett Larsen. Please go ahead, sir.

Brett Larsen

everyone. afternoon, Good Larsen, Brett Officer Key of I Chief Tronic. am Financial to I joining thank us like today call. for conference everyone would investor for our

Gates, in headquarters Executive here Spokane our Craig Officer. me Chief President Joining and the is Valley

or that always, predictions. the during course may that performance. company's results make or future of remind regarding Actual statements remember might the other we financial I forward-looking would such call, future materially. As only to projections you events statements like are this events differ Please or

For you information the call, latest this Please information, our regarding SEC, filed may more X-Ks. factors review operations. on statistical our outlined documents with we'll business and the discuss in XX-K, specifically has and that risk quarterly historical, XX-Qs the financial company note other the and

is a for XXXX. were Some be will announcement results released XX, company's The quarter XX, on press on in included of of preliminary XXXX. version of this our today's this third we recorded the Today, call line release, with information March April results our website. available ended the in and results

For million year million to reported XXXX, the the year in compared fiscal period same of $XXX.X revenue of quarter third XXXX. of total fiscal $XXX we

our in large, reported, reduced orders third longstanding fiscal quarter from customers. of was previously As revenue two adversely the XXXX impacted by

a One of demand in rebound in expects the these the but customers needed quarter. quarter, to in lower its third fourth inventory

its it Key transitioning as The Tronic's inventory production Key other facilities. Tronic's large is customer facilities Mexico is from China to managing

revenue We're from of million of first fiscal revenue period Despite the months X fiscal the the in of in same in for quarter. in $XXX.X unanticipated X year customers the in delays addition, the decline total for third X% XXXX. XXXX. was QX, year our were up million launch there In $XXX.X sudden production

periods, to the net net in year intangibles $XXX,XXX the earnings for for This Xx of streamlining addition, operational of XXXX a accounting of million resulted same is strategic X third Furthermore, Due period fiscal and also months $XX.X investments $X.X due wrote-down we approximately the of and recent write-off goodwill fiscal million during and quarter severance were workforce XXXX. in third of by the quarter in intangibles the when our of requirements, by in $X.X to or earnings, to our able XX%. excluding increased XXXX. in reduce effort XXXX. we In severance, charge million of the year goodwill approximately efficiencies

of X.X% the third the gross same in For quarter compared XXXX. was fiscal period XXXX, year of to X.X% fiscal margin our

see to decline We quarter. revenue our and severance expect for be write-off improving revenue, in fourth realized the sudden bottom cost adverse inverse an impact on had costs gross margin -- and begin to our levels in the charges the as of line. goodwill and rebound intangibles, reductions The

the $X.XX of income share QX, loss $XXX,XXX net per year first compared losses or year XXXX. share for in same for mentioned $X.X to or the the previously For quarter loss the per a million had the to $XX net compared of $X.XX the third of fiscal or third net company XXXX. share of million months per year-to-date $X.XX was Because loss net of X fiscal the of period fiscal share, $X.XX XXXX XXXX, of or quarter for income fiscal per $XXX,XXX of year loss approximately

for quarter the first intangibles of for have and third the would the for per $X.XX months respectively. of share and per the results of net income both goodwill fiscal Excluding and share $X.XX and severance, charges X write-off year been approximately XXXX,

Turning to balance sheet. the

quarter, fiscal to quarter the with of we -- of third third XXXX from fourth in from delays quarter, Trade programs and million. a fiscal expenditures in expect ramp approximately in see revenue XX XXXX. quarter were and the levels shortages, receivables to position. the were come by In more the reduction Despite the decline third to even still end revenue financial to due and DSOs the about quarter to levels. $X.X the million, we year the shipments $XX.X been of days. inventory able Total we at our XX% million component were in We a in continue were maintain ago, decrease line of continued net our a $X.X approximately able inventory the capital strong third sudden new had

to Minnesota our facilities, our in as equipment production Vietnam. continue well million during XXXX. in fiscal plastic and plan in have capabilities approximately as invest expenditures We in We $XX Arkansas, and facilities metal improvements total molding SMT and to sheet capital

fourth following of production. we the to over XXXX Moving customer ramp our expect into quarter and the of more continuing quarters, move few fiscal new programs into and

fourth expect we had quarter. $XXX into large $XXX We have factors recover Taking that these to fiscal the of the customers also quarter consideration, expect sharp in quarter the of from XXXX such will to begin to million demand two million. revenue reductions the range third in fourth the in

overall expand positioned future remain by fourth the our and we fiscal for earnings encouraged $X.XX sudden we quarter, to for XX%. per That's longer to summary, and decline profitably our the company financial it rate prospects over also This $X.XX tax the new quarter growth. time. revenue to continue the we of of share. the In The XXXX, win strong, and by assumes an of third range For in to programs the of in anticipate Craig? we're EMS is we're health me. for business while effective that earnings disappointed believe our well

Craig Gates

Brett. Thanks,

in rebound the continue significantly decline new both the fourth third our expect the significant customers of by XXXX, the fiscal to same revenue At contribute While we for to in unanticipated quarter ramp. we time, in quarter. these demand programs to two of programs were impacted large and

allowed us We to streamline have and periods new increased business, continue to win recent investments efficiencies our in significant operations. our in

lighting. business very existing and outdoor EMS competitors significant new While dispensing customers, to LED competitive, from programs paper both marketplace emergency medical including tools, consumer remains kitchen our products we involving new win continue and equipment,

to potential more Key the base and to their customers current problematic continue Key future Tronic. back States. experiencing of time, lowers any importing ramifications be the Tariffs slowdown by customer of a broader our customer. have a out continues Tronic into are product for of same situation diversified of mixed customers Our Shanghai to the tariff the drastically our for At evolving American seamless United or sites transition one Many Shanghai business with impact associated sites. by our facilitated risk the our This new some in the tariffs control. more changing to transfer China rapidly landscape. site tariff to our we and to potential into North believe time our allows respond made Juarez and leeway that command appealing is This customers. reduces production and thus have Mexico-based domestic Furthermore, on centralized the production

American that both analyze balance, competitive as prospective North bound quotes pushing positioned This products and U.S. extremely we're increasingly the in Mexico for and subject production resulted into request has North have total for become the the new customers. for for to Our U.S. production customers, they correctly American-based are returning tariffs. to On well overseas from cost sites increased interest tide

to new in manufacturing continue we XX,XXX progress Vietnam. facility Nang, of Da with square-foot quarter, third the the During build-out our

costs commencing uncertainty war or additional as in hedge production will expect as trade provide well Vietnam with future against Asian reduce augment We that lingering a production in an and our China. footprint

and production We efficiencies manufacturing labor the been Over operating effort facility manufacturing intensive. by less and expenses has Vietnam new our million operational our decreased expect to we've XXXX. approximately recent in each made deploying July improved of be periods, of result innovative this $X which annually. The of equipment facilities, is

While U.S. managing we're plastic Mexico, capabilities SMT, expenses, the carefully in and Vietnam molding and making sheet we're our in facilities, investments metal

and more North Minnesota With space few metal-centric integrated see equipment for very and we added electronics contiguous strong and also in real competitors in We production programs, respect America. to sheet additional growth. growth

pipeline new in business EMS level our our sites to to the of excellence unmatched by boosted of steady our of our footprint manufacturing opportunities of size. comparison continues integration, competitors Our and multi-country vertical other be

to the we and an As in uniquely located are offer integration Mexico facilities equipped risk U.S. manufacturing Vietnam. OEMs mitigation uncertain landscape, and in China, our with and face increasingly vertical soon geopolitical

industry be factor. landscape chain a continues As improve, to supply market the shortages continue to

revenue concludes to I the This and we're full our the for fiscal -- about XXXX, we coming year questions. presentation the will in expect pleased optimistic and portion quarter periods. growth Brett in formal now the of and fourth answer your be opportunities However, presentation. formal for growth our be

Operator

from Dezellem Bill We'll Tieton Capital. first of [Operator take question Instructions]. our

William Dezellem

questions. of group A

of all, of each those is with I'll new you First my the What that size standard. won? four of programs start off

Craig Gates

when around That's That's $X nine an consumer, take if low-volume tools, with tell going kitchen start and order, These have grow. out that to at them as move of dispensing current contract we eight $X paper us folks switch they So one. about do million interesting have products. prototype emergency companies them they medical million. they manufacturers offshore equipment, they in then runs to

then if about So it all the way one, $XX final $X more be And it million. this is works outdoor the expect one should But we which actually it and we're bit is the annually. quite is reporting million out that. about both for than customer lighting the a will,

William Dezellem

works And much be? if ultimately anticipated, that out customer the could dispensing size larger as how paper

Craig Gates

and between million Somewhere $XX $XX million.

William Dezellem

you launch for speaking delays, as in of a you of much talk as can the Great. customers. of And couple you in did about new please? have two, Would those then each customers, production detail new

Craig Gates

good this more million that our example China, the have was all customer $X with CM classic of biggest with quarter. it. of manufacturing because And being million in by almost it been done of worth their that handle worth goes say is and in and a company didn't $X one CM or than The a on and documentation kind some ODM who the about their the a an a had about a have specifications of of really Yes. go I'd should design

the have begun using we implemented. the into based that to thought being they actual a as between were we it problems of run they in mismatch design design was the upon So manufacture number and Mexico,

product. QX. that now, an absolute X in on quarter ramp right up we're that we're $X now and planning in So And this ended getting finally million. to just being

to would be would And one So the that's it in was Tronic our figured and their I $X hold, firmware it coming be. we is that Key probably million were and modified then while didn't million or other $X to that as quarter product market, firmware. production we a And the hope than million there that rather the customer going put issues, this had to suspect brand-new $X product out unfortunately, design. our began discovered hit on

in also ramp quarter. So to this beginning is that one

William Dezellem

for what it expect have revenue? it will you And be should do what QX? in been And

Craig Gates

in million And we're $X Should just have beginning QX. to been around it. ramp now $X.X million to

So for million million we're QX. $X.X $X in or hoping

William Dezellem

Great. SkyBell. And -- talking an let's we're update to then us Would you since give shift business, let's new there? please

Craig Gates

see strong SkyBell demand. continues to

We of well with in in costs factory terms production matching our are the projections. doing up

far are things as good. can as So we tell,

William Dezellem

ramp And how do going forward? think we business the of about that

Craig Gates

tell levels away At there. I least actual to the don't you know X demand. X from maybe levels what or

have we off to go So people's other forecasts. of

William Dezellem

Great. let's the we talk about could if efficiencies And operational referenced. then that you've

to costs going to or was sure so. right. $X it lower make think is I calculation want that million by my I

share So correct? that that's $X.XX per per year Is roughly benefit.

Brett Larsen

Yes. Yes. That is correct.

Craig Gates

Yes.

William Dezellem

us that of And intangibles? include to that done generate lower that about what savings amortization And to terms written so does you've and from in million? off having anything $X talk

Craig Gates

No.

on of impact a zero writing off essentially is quarterly intangibles basis. the there So

I is maybe... think there some

Brett Larsen

a couple thousand It's dollars. Yes. hundred

Craig Gates

Yes, very little. it's

So operations the side business. And more pretty running reduction. eastern impact significant more changes headcount efficiently, equipment the due efficiently, being was result run the on to of the major management was

William Dezellem

better not the the many running do plants therefore, need you people. that line? you're Is Basically and, really as bottom

Craig Gates

Yes.

William Dezellem

a in for to then ready ready after now. you What update that one it's please. have plant? do the to you move? the does might initial additional us customers look business more that little would And Just detail, provide lineup be July, And question prognosis as once further lined like up? Vietnam, customers for

Craig Gates

over exists. think, of is building onboard. in our chief So The X We're onboard site or is, coming a manager to of engineer the embryonic X for shortly.... very The years. will and build in is person stationed out. Spokane out new now the very either The new factory is The actually be right HR I there midst state.

Brett Larsen

as yesterday. Hired of

Craig Gates

onboard. yesterday, of so as Hired

seeing are people true. costs for our are We to be proving that projections

going is process and We overall, issue. people less exactly an is are less concerned And going availability that as plan. per to be the

years, running. so it As to many us, and plants all kind number. I've you discussed, process and past forgotten thing of plants get But here plant is of Tronic. management quite done is times we I've really the for the in this the it Spokane, a XX for closed over We've and a open Key since have opened total simple

guy it, done going it Ops, The our of So I has times many Doug that's how all great. know who don't doing Burkhardt, is before. VP

how operational of pretty all it's going to and and people. efficiencies in So ramp-ups I relaxed about am terms go

X, have that customer of think, for I our our be top X, to one is maybe We anchor largest maybe customers, facility. top going

in X first And so, even we've in maybe be listing keep growing And and to for what months of jiggered to will where. it its are around July, once place. probably year. already enough got the match build we busy factory we're existence a up Documentation being that the selected. to Inventories is start X going to with first the

we've look existing sitting being number either to is compared an that are in for today, aren't that is to at guy are people other in products have even by hope indicates a one them, when going built the which a is a kind interested to China. interesting with or future still look we the all been us building customers in, and people of option that people that by had tell with And actually phenomena that's Vietnam thing we bring stopping to that just it's new we and site Vietnam, going to us customers pretty guys office. well, other been in China in are either have of, building The look

Operator

[Operator We'll next Crimson question our from Thelen Drew Advisors. of take Instructions].

Drew Thelen

and It sounds good, base. pretty expense the like pipeline readjust the the on ability congratulations looks to

a earning Given return of next to of type your could XX% and that that, or thing when get earning of you still? do out you Is type think years that back on is a capital your equity? year cost few a

Brett Larsen

projecting -- invested within would would there from -- think now. I I year a capital probably that return to within but on would I difficult we're say, a -- XX% expect to be

Drew Thelen

Okay. but Well place was focused start stock probably Are price. few we are And the going Obviously, years Riley then a question. one lower than your talked ago other B. balance to your that you had X that's the stated stock price. X then digest a about buybacks? Are buybacks very would good at And news. acquisition, had We years ago conference. you ago, consider you if the thinking were the in bit same you're years little a at on still on to share sheet? you

Craig Gates

I on that focused by, And has more sheet. balance great convinced We're still are the as time an idea. buybacks more gone that of share and became not

Drew Thelen

Got it.

how see insider the or... matter or share price probably won't no we buying So buybacks goes, any low

Craig Gates

this wait that I definite we a can't say. at I'd it's I no. to tend say But say for them point. wouldn't

Drew Thelen

Okay. Got it.

as So at move growth every and the year things. guess, are a as other obviously down value look people I a stocks, stock -- obviously various price bit. There shareholder, the number can people focused on around of goes quite more

back we basis? you of a stock get can Given that, a price on the better footing go-forward on kind do how think

Craig Gates

always the answer, easy the obvious answer and that is Well, answer it's to is the better. been do obvious that and

to going we're solidifies. little do that, you want trips, this more a if road to as bit all call So it

back bit to story is So to very XX that of know in telling we the I we're And looking there out [indiscernible] think more we're the start year market disappeared horns. of a before basically next we we're still want of go in a some now, have the we the proof proof tell. journey our months actual great program some a it we at $XX because have have want we to story. us. that quarter, and a planning of from at on pudding a on this we doing blowing the million But but two that in a looks start little but before

Operator

MKH We'll Management. Melas take of George from next our question

George Melas

number trying the you million. to of in I'm the the two sort revenue of quarter to are back, for two Craig, of guidance this miss the the of two I million, million we of and customers said And $XXX starting to recover. the a and $XXX that right, sort $XXX did fair guidance. There's new resulted ramp sort questions. And coming was customers initial program, roughly large the understand think

just to I'm you first understand trying year for the So guidance the your revenue because half of did...

Craig Gates

George. Hey,

George Melas

Yes.

Craig Gates

million. I think you're wrong starting original the with million to was $XXX $XXX The assumption. guidance

George Melas

we they question, a my it okay. and like right. you new customers in in I much wrong Are bit how a a All as revenue us, Bill's Okay. should we have adding, way model, basis more should on had you that adding to regular seems tell growth. little are -- be these

not sense. trying Is are Are some you to So just what's customers? customers? I'm losing small pruning see just quite -- I'm to trying there happening. you a get

Brett Larsen

thing. we're three, for longstanding over their revenue. over some We we're But year. reduce X% to We last X% quarter demand did XX% last large in have the year. fiscal should One customers in impact last ended, Even including the two a still fourth year's growth over months exit definitely miss showing total still with quarter nine QX.

Craig Gates

was commodity-type because look terms talked are is were What back guys, pretty smaller, the bit bit I a you size doing fact X about we've you market, marketplace. been that little and X moving more of towards the Tier a seen, but which in quite at doing we of while growth. a the don't Tier really know getting analysis We've of the remember, if guys, our tighter convinced data rough if our and marketplace we

growth, cranking guys showing the actually good this the are we're Tier one pretty up think it that's whereas I year. only X

-- to ourselves. can look you way we overall, market judge you the And get confused at what so, the if compared

growing market, to a bit. quite we're the So compared

it customers, year. you micro what the is I If it to should look from standpoint of numbers give next our happening what's our and you why just can't say each there of this add are at just be that take actually a them and reasons X current with number Bill

product is talking coming always example million we that that from projected and take we is a QX, in take This we really It buy it'll it. product production. something quarter wanted mature probably that it's was go with a we that because And half year is pretty on talk been pretty a about First time get good the have this that to things going even move. to $X customer us fact the to badly make quick we're QX, the day is cut one already to it them. say these ourselves you was half in and of long this it a move a how should was it. a And that be something could that, and that of yet in only about part

have somewhere X actually that these X years give are lot before a to that between So of hit going figure you I to and Bill they number. numbers to take guys, you

what it as part as sounds like the why that's of just wins. it isn't So at rosy if look you

The we chance. about other had is versus could and them we have analysis customers. that do we we figure lose to trying which lose some which a that pretty done lose ones something out do we side that of something why been significant through were and it ones no of We've ones

we with to of customer, no help end smaller start that getting company, really them and chance one and is bought and again retain a they some big occurs really we them. succeed the So that have up we thing by again

the happened that's years, twice see payoff story you the end last in never of to heartbreaking because big happens. the of that's the us few and at So kind

our we was signed with X that modified on We these have period years. and an one exclusivity small to approach customers Last them. take demand we actually that have I for

want So for to significant purchaser this decide a if build it us that if the them. pretty they does us there happen, does for don't is payout

draining mirror. we trend it, that beyond losing our of really see not the wish kind this should X one have the kind of bottom you for X really be, I that years that the that that's XXXX in vision seems most different, out statistical of last was that So in stop There bucket. to And has a says I the get done reason is do to significant painful the X been customers. a or ones of to what is but and the There control. are would rearview there's

and those a we third the Bill to that's complete quote. numbers, it we Then on So I them average, is the should just why by X, by about Bill's you I And the I'm that two revenue. debates number give were stick Bill's X, should on sorry, you. using. one have number that's numbers are reasons guess it and number -- we to And a and the give what can't divide current divide don't I answer. I behind But not that the given Bill's and the we be answers you is we number long maybe curtain. what's know. take That's

George Melas

Okay. two had few two and In sales? where that that smaller customers did instances acquired. from were that you last instances. much was take grew how years, and you away When the mentioned Those

Craig Gates

my two the of details was head on the business I That was Last one lost $XX And it. time that of of at by about one the years top have we was and annual the that one. painful. most million ago,

Brett Larsen

this was well. there as year Well, one

George Melas

Did one other you say one...

Craig Gates

Yes. million There's $XX year. another one a was that about

George Melas

Okay.

So these numbers. significant are

Okay.

Craig Gates

lot necessarily put helping doing. and work what of guys a should as they we And of are soul do into they we because out skilled see as at heartbreaking It's heart then it lot doing Yes. the door. aren't a and be walk we that

write way the changed the So we as I contracts. said, we've

worked. so it's actually, far, And

of the going contract, So to to it's be, us, turned kind and was that one to okay. be we it's out scaring had due

imagine... can you As

George Melas

that? you like to exclusivity the timelines these able are contract implement these in to do So able you said? or are You

Craig Gates

Yes.

Brett Larsen

Yes.

Craig Gates

smaller are they you discussion as if unskilled that because, they how difficulty they imagine are upfront up they can risk and understand a deeply understand as at the are typically, don't actually us. doesn't doesn't with sign that And customer of

"Okay, a have enough of So now more a the you unless they examples, we're are it's easier to you discussions going wait payoff at we to trouble it, until delicate bit to is rainbow." have balance to But not guys, there say, it's a of get the those in that with big end save as people.

George Melas

But then was And this a seems bit. capital balance capital, the primarily like Okay. on down your working capital cycle working days a revenue sort target generated be? of creeped the this working bit up way is reduce but some. cash Is sheet there I calculated here? a at quite under because XX to little of days. the quarter, What it could how that? And that's

Brett Larsen

inventory. predominantly That's Yes.

inventories, down they they're As from where in not we year, well line with mentioned, last still revenue. were while

Some was higher fact due left to carrying be the so to of fully a QX, revenue had we inventory. in we that That's battle. anticipated going the that were constant

the drop continue really I we revenue at more of a need cash we to quarter. to days level think that's to to that's what look this And conversion drove what amount to stable the have.

George Melas

what... So

Craig Gates

You you... can imagine if

George Melas

Craig. ahead, Go

Craig Gates

I was if customer you all got say and to ship those just to to of and parts that another was new have going million there. one in QX, of have $X $X million build you supposed customer

Brett Larsen

Because amount that in excess within times of of buying you're well lead quarter. at time the

Operator

Tieton of Capital. from question another Dezellem Bill take We'll

William Dezellem

the I actually answer, net XX% circle ROC. about to you like and the to would key gave return Brett, capital that prior back to on questioner

as and capital a together? So calculating are debt when adding equity the calculation, as for is that simple it you

Brett Larsen

cost looking of on our more what at be was weighted I would our average equity. capital

William Dezellem

on? equity a on So return really XX% what you were is focused

Brett Larsen

Yes.

William Dezellem

Understood.

Okay.

then talking $XX million a or so, at if I somewhere XX.X XX% that roughly $X.XX in a million return or at And we're million with that, equity look your roughly take neighborhood? shares, and on $XXX

Brett Larsen

are great numbers. Those all

William Dezellem

numbers. fabulous are Those

Brett Larsen

of integrated reasons our the time, Vietnam That's are that out and headed the type a a going backlog and one we of But current by making those that where we we're from we're in just to out hopefully fact with year point gave numbers. guidance quarter. have

William Dezellem

it. appreciate Great. I

back that back the gave did circle fourth me talk actually Let that? guidance underlying to quarter numbers Would that Those the versus a bit. dynamics when you to the for the you little pulled today. about pre-release you led

Craig Gates

are to there just -- did. million take $X Those you Yes. off $X.X going miss if the miss you one million and go. the we're going I off we're to the the other,

Brett Larsen

Yes.

William Dezellem

it. Got

Okay.

So those to you were a at run be simply going assuming rate? fuller were just

Craig Gates

Yes.

Brett Larsen

Correct.

William Dezellem

rate not understand that changed. run of that has that I It's fall. the timing is Did simply revenue when to going And correctly? ultimate

Craig Gates

for which the from don't Certainly, run know these why don't is that sets of don't We than first going both a more out to what have We POs true. rate sure quarter. be. to flat we for is customers, know is the we of like project yet,

William Dezellem

then where that And $X.X statement? to relative that Understood. on income fall of severance, the million did

Brett Larsen

of sold. cost through goes That goods

So that this one on is drags of the gross for margin quarter.

William Dezellem

And none of it fell through SG&A?

Brett Larsen

No.

William Dezellem

Great. And one additional question. then

asking and than and the been. was of X set you going developing I questions the more my questioners the curtain there is first ROE has historically that on target, have leads all that behind XX% believe of when to to listening things lot the a So good me other black

shortly the new ongoing to arms program wrap I'm can what or anticipate in get ramps don't either know that in that's what magnitude trying programs, you the or dollars versus is very of hopefully past? have gist you that if today my I And through of spirit, in you best talk addressed but the So number -- of the around.

Craig Gates

if look tired a a probably struggle to But of -- you of qualitative we kind answers started give way while that to on hearing. the We out you story and that answer at I can figure you're you. for Yes, back.

and was turns If getting out tougher we you our decided look right. the we were at that market fact

decrease of What we costing. growing. just has below, got a are invested and months, a new paid We're that shrinking. the the over bit, experiment, analyzing done If you changed number That our quite -- changed say sales was they would quite to well. experiment XX structure that and in quite off factories technologies I size look last at process quoting our our and that did we a about bit, our

are awards not what that X all outstanding business seen being yet point wins to awarded, quotes our of the those the the number Xx right in given number now, past are ramped to in number that we've close at quite and of are probably but history. currently of So the of any

this how factory of I haven't in or to projects versus products count are question what do terms you the to of quarter. ramping when going problem in your way regression I trying is do that's actually to you the look at of it new In what's in at and looked -- tell our the past. answer did win. And analysis we're new to you that as that try

quoted. as put argue, so, came cut, I was we units in the we that the started it of I actual what if lose, And did there, PO we when no of more first hit you when is decline, when first it of product the when finally XX% the when when is that built they that or at when look factory, Then decline. and it to do number for somebody, is the you out

everybody quoting answered. want with that's that's standardized I to method everybody I in I everybody PO, in get you, get a our And it. how anything anything literature, you to reports the don't reporting exposing anything awarded do question exposing exposing announcements, So financial of see short people's us other business, can the see see as to us that's handshake us, that know given to of and first

William Dezellem

wins been? near Xx higher to that historically have those quotes, are Xx correctly, all wins, you heard are handshakes I they than ramping, if Craig, or

Craig Gates

Yes.

William Dezellem

to forward that $X.XX helpful. is the of Well, we in turning year. And earnings into that look a

Craig Gates

So do we.

Operator

back further At to management questions. closing this time, no have we it remarks. turn I'll for

Craig Gates

look to we calling talking Have next us time. and day. listening a in. to good Thanks forward all to you Well, Okay. your for appreciate

Operator

and gentlemen. Thank concludes today's conference. you, This ladies

now disconnect. You may

Key Tronic (KTCC) 5 May 192019 Q3 Earnings call transcript