Key Tronic Corporation (NASDAQ:KTCC), a manufacturer of printed circuit boards with annual revenue of $548 million, has announced amendments to its bylaws and disclosed the outcomes of its recent shareholder meeting. The company's stock has shown strong momentum, gaining over 34% in the past six months according to InvestingPro data. The changes to the bylaws and shareholder voting results were reported in a Form 8-K filed with the Securities and Exchange Commission on Monday.
The Spokane, Washington-based company's Board of Directors approved the amended and restated bylaws on November 25, 2024. With a current market capitalization of $60.5 million and a price-to-book ratio of 0.49, InvestingPro analysis indicates the stock may be trading below its Fair Value. The revisions include updates to the advance notice period for shareholders to propose matters or nominate directors at shareholder meetings.
The new notice period is set to not earlier than the 120th day and not later than the 90th day prior to the first anniversary of the preceding year's annual meeting. Additional procedural requirements have been added for shareholders proposing business or director nominations, along with clarifications on the Board's authority to determine the propriety of shareholder proposals.
At the Annual Meeting held on November 25, 2024, shareholders voted on several key proposals. The election of directors saw all nominees elected with majorities ranging from 5,534,088 to 5,874,332 votes in favor. The advisory vote to approve the compensation of the company's named executive officers was passed with 5,440,765 votes in favor.
The ratification of Moss Adams LLP as the independent registered public accounting firm for the fiscal year 2025 received overwhelming support with 7,833,899 votes for the proposal. Lastly, the approval and ratification of the Key Tronic Corporation 2024 Incentive Plan saw 4,932,252 votes in favor.
In other recent news, Key Tronic Corporation reported mixed results for the first quarter of fiscal year 2025. Despite a decrease in revenue to $131.6 million, down from $150.1 million in the same quarter the previous year, the company saw an increase in net income to $1.1 million, or $0.10 per share. This is a significant rise from $0.3 million, or $0.03 per share in Q1 of fiscal 2024.
Key Tronic's operational efficiency was also highlighted with an improvement in operating margins to 3.4%, coupled with a reduction in inventory and total liabilities. The company anticipates Q2 revenue to be between $130 million and $140 million, with a projected net income of $0.05 to $0.15 per diluted share.
The company anticipates revenue recovery in Q3 and Q4, with a cautious outlook. It is also working on refinancing debt to improve liquidity and has hedged currency to maintain gross margins between 9% and 10%. Despite facing design and qualification delays which impacted revenue, the company's production in Mexico increased by 10% sequentially. Furthermore, three program wins, each valued at around $5 million, have contributed positively to the quarter.
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