Key Tronic Corporation

Ladies and gentlemen, please stand by. We're about to begin. Good day and welcome to the third quarter fiscal year 2020 Keytronic Corporation conference call. Today's conference is being recorded. At this time, I'd like to turn the conference over to Mr. Brett Larson. Please go ahead, sir.

Good afternoon, everyone. I am Brett Larson, Chief Financial Officer of Keytronic. I would like to thank everyone for joining us today for our investor conference call. Joining me here in the Spokane Valley headquarters is Craig Gates, our President and Chief Executive Officer. As always, I would like to remind you that during the course of this call, we might make projections or other forward-looking statements regarding future events or the company's future financial performance. Please remember that such statements are only predictions. Actual events or results may differ materially. For more information, you may review the risk factors outlined in the documents the company has filed with the SEC, specifically our latest 10-K, quarterly 10-Qs, and 8-Ks. Please note that on this call, we will discuss historical, financial, and other statistical information regarding our business and operations. Some of this information is included in today's press release, and a recorded version of this call will be available on our website. I hope all of you and your families are healthy and safe. And before we start our normal quarterly results review, I would first like to turn some time over to Craig to talk about the topic on everybody's mind, which is the COVID-19 pandemic and its impact on Keytronic.

Okay, thanks, Brett. These are unprecedented and challenging times, and this pandemic affects all of us. I've been humbled by the stalwart dedication of Keytronic employees as we work to manage through this crisis. Our first focus at Keytronic continues to be to ensure as best we can that our employees and their families stay safe. Within the constraints of our efforts to keep everyone at Keytronic healthy, we're doing our best to maintain production in all of our facilities. We have been taking and will continue to take precautionary measures to limit the risk. Our most vulnerable and many of our non-manufacturing employees now work from home and travel is restricted. We have implemented all recommended safety measures in our manufacturing facilities. This includes full-time wearing of face masks and face shields, workstation arrangements to provide social distancing, temperature monitoring, enhanced worksite disinfection, spacing in cafeterias and break areas, contact management, and more. Last week, we experienced a temporary shutdown affecting our Mexico facilities, but due to successfully petitioning the Mexican government this past weekend, we began reopening our facilities today. We expect to have operations back to near normal by the end of this week. However, we expect additional challenges with absenteeism, keeping vulnerable employees at home, transportation complexities, and disruptions to our supply chain that we will need to manage in the coming days. Some of our suppliers have experienced temporary closures resulting from governmental lockdown and shelter-in-place orders. At this stage, we have either been able to work around these temporary disruptions or closures have been resolved. We are managing risk via alternative sourcing, air freight, product redesigns, and alternate component qualifications. We're closely monitoring the status and will use safety stock as much as possible to ensure minimum interruptions. At this point in time, we've been able to find solutions for most of these challenges. Regarding customer demand, our portfolio of healthcare products has seen an unprecedented upside, while our gaming customers have seen an unprecedented decrease. So far, the net effect of all the puts and takes has been positive. Of course, the drastic changes in demand come with their own challenges, and I will discuss more on this later after Brent reviews the third quarter results. Brent?