JASPER – Kimball Electronics, Inc. (Nasdaq: KE) announced Tuesday financial results for the first quarter ended Sept. 30.
Net sales in the first quarter of fiscal 2023 totaled $405.9 million, an all-time quarterly high and up 39% year-over-year.
The company also reported net income of $9 million, up from $2.6 million in the first quarter of fiscal 2022.
Operating income was also up considerably: $13.6 million compared to operating income of $4.8 million in the same period last year.
“I am pleased with our results in Q1 and the strong start to the new fiscal year. For the third consecutive quarter, net sales surged to a record-breaking level, setting another all-time high for our company, and operating margin improved compared to the same period last year. This was in line with our estimates as we ramp-up production on new and existing programs, and leverage our facility expansions in Thailand and Mexico,” said Donald D. Charron, chairman and CEO of Kimball Electronics. “These investments, however, increased fixed costs that were not fully absorbed when comparing the operating margin rate to Q4 of fiscal 2022. New customers and product start-ups generally cause margin dilution early in the life cycle, which are recovered as the program matures. As a result, we expect sequential quarterly increases in a stair stepped fiscal 2023, and we are affirming our guidance for the full year with results expected at the high end of the range for sales and operating margin.”
Net sales increased in total by 39% compared to the first quarter of FY 2022. Sales in all market verticals increased compared to the same period year-over-year; automotive was up 43%, medical 35%, and industrial 35%.
Kimball Electronics is a multifaceted manufacturing solutions provider of electronics and diversified contract manufacturing services to customers in automotive, medical and industrial markets.