Key Tronic Corp. announced unaudited consolidated earnings results for the second quarter and six months ended December 28, 2013. For the second quarter of fiscal year 2014, Key Tronic reported total revenue of $78.3 million, compared to $94.6 million in the same period of fiscal year 2013. Net income was $3.1 million or $0.28 per diluted share, compared to $3.6 million or $0.33 per diluted share for the same period of fiscal year 2013. Results for the second quarter of fiscal year 2014 include a one-time tax benefit of approximately $1.5 million or $0.13 per diluted share due to changes in Mexico's tax laws enacted in December of 2013. Operating income was $2,366,000 compared to $5,332,000 a year ago. Income before income taxes was $2,350,000 compared to $5,240,000 a year ago. Capital expenditures for the second quarter of fiscal 2014 were approximately $1.5 million, reflecting investment in expanding new sheet metal fabrication capabilities.

For the first six months of fiscal year 2014, total revenue was $156.2 million, compared to $192.1 million in the same period of fiscal year 2013. Net income was $4.8 million or $0.44 per diluted share, compared to $7.3 million or $0.67 per diluted share for the same period of fiscal year 2013. Operating income was $4,826,000 compared to $11,028,000 a year ago. Income before income taxes was $4,788,000 compared to $10,820,000 a year ago.

For the third quarter of fiscal year 2014, the company expected to report revenue in the range of $73 million to $78 million, and earnings in the range of $0.13 to $0.18 per diluted share. The expected earnings range assumes an effective tax rate of 32%. It expects gross margin to remain around 9%.

The company expects CapEx to be about $6 million for the full fiscal year 2014.