Key Tronic Corporation Announces Late Filing For the Second Quarter of Fiscal Year 2021

SPOKANE VALLEY, Wash., Feb. 10, 2021 (GLOBE NEWSWIRE) -- Key Tronic Corporation (Nasdaq: KTCC), a provider of electronic manufacturing services (EMS), today announced the Company is unable to file its Quarterly Report on Form 10-Q for the quarter ended December 26, 2020 (the “Form 10-Q”) by the prescribed due date without unreasonable effort or expense.

During the final preparation of the Form 10-Q, senior management of the Company received a notification from an employee regarding irregularities of the classification of inventory between raw material and work-in-process at a production facility. Management promptly reported the matter to the Audit Committee of the Company’s Board of Directors (the “Audit Committee”), which immediately took steps to commence an internal investigation. The Audit Committee retained and continues to work diligently with independent counsel and advisors to complete its internal investigation as soon as possible. As a result, the Company has not finalized its financial statements or its assessment of the effectiveness of its disclosure controls and procedures and any impact on its internal control over financial reporting relating to the Form 10-Q. The Company is not in a position to file its Form 10-Q at this stage of the internal investigation and as the Company’s independent public accounting firm undertakes its required procedures. At this time, the Company does not anticipate a material adverse impact on its historical financial statements.

In addition, the Company is cooperating with the Securities and Exchange Commission (the “SEC”) regarding the investigation and related matters, and the Audit Committee intends to provide additional information to the SEC as the investigation proceeds.

About Key Tronic

Key Tronic 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 world’s leading original equipment manufacturers. For more information about Key Tronic visit: www.keytronic.com. 

Some 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 words as anticipates, continues, expects, intends, 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 press release include, without limitation, the Company’s statements regarding its ability to file and the timing of any such filing of the Form 10-Q and its expectations and its and others' actions with respect to the investigation and related matters expected financial conditions and results. 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 findings of the investigation, the actions by the SEC, accountants and other third parties, finalization of its financial statements and controls review, and factors, risks, and uncertainties detailed from time to time in the Company’s SEC filings.

CONTACTS:		Brett Larsen		Michael Newman
		Chief Financial Officer		Investor Relations
		Key Tronic Corporation		StreetConnect
		(509) 927-5500		(206) 729-3625