Key Tronic Corporation

http://www.nytimes.com/2001/12/22/business/key-tronic-verdict-may-put-it-in-default.html?ref=keytroniccorporation

Key Tronic Verdict May Put It in Default

Published: December 22, 2001

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SPOKANE, Wash., Dec. 21— The Key Tronic Corporation said it would not be able to make some loan payments after a jury concluded it must pay $16.5 million for giving stolen trade secrets to the Microsoft Corporation.

A federal jury in Seattle found that Key Tronic misappropriated trade secrets and breached a confidentiality agreement with Fernando Falcon, Federico Gilligan and their company, F&G Scrolling Mouse L.L.C., Key Tronic said. The jury determined that Key Tronic disclosed the secrets to Microsoft, which used the information for its IntelliMouse products.

As a result of the verdict, Key Tronic said that as of Dec. 29 it will be in default of certain credit agreements with a lender to the company.

Key Tronic said it intends to seek a waiver of the default from the lender, which was not named in the company's statement announcing the jury verdict. Officials with the company, which is based in Spokane, were not immediately available for comment.

Key Tronic said it also will seek to have the verdict overturned and may pursue other options, including a possible suit against Microsoft.

Key Tronic's shares fell $1.07, or 44 percent, to $1.35 a share on Nasdaq.

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Company Information

Key Tronic Corporation (Key Tronic), along with its subsidiaries is engaged in electronic manufacturing services (EMS) for original equipment manufacturers (OEMs), and also manufactures keyboards and other input devices. The Company is an independent manufacturer of keyboards for computers in the United States. Key Tronic offers its customers a range of services, which include integrated electronic and mechanical engineering, precision plastic molding, assembly, component selection, sourcing and procurement, worldwide logistics, and new product testing and production. During the fiscal year ended July 2, 2011 (fiscal 2011), the five largest customers accounted for 62% of total sales. The Company provides some EMS services, including product design, surface mount technologies (SMT) and pin through hole capability for printed circuit board assembly, tool making, precision plastic molding, liquid injection molding, automated tape winding, prototype design and full product assembly.

Key Tronic Corporation
North 4424 Sullivan Road N. 4424 Sullivan Road SPOKANE WA 99216
Phone: +1 (509) 928-8000
Fax: +1 (509) 927-5555

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ARTICLES ABOUT KEY TRONIC CORPORATION

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Key Tronic Verdict May Put It in Default

key tronic verdict may put it in def

December 22, 2001

Nafta Trade-Off: Some Jobs Lost, Others Gained

By JAMES STERNGOLD

Twenty-one months after the North American Free Trade Agreement took effect with ebullient projections that it would create hundreds of thousands of jobs, the experience of the Key Tronic Corporation, a big manufacturer of computer keyboards in Spokane, Wash., is a reason some critics argue the trade pact has cost the United States dearly. Key Tronic, which faces stiff competition from Japanese manufacturers, has laid off 277 workers and moved their jobs to a plant in Ciudad Juarez, Mexico, whe...

October 9, 1995

COMPANY NEWS; F.T.C. CLEARS SALE OF HONEYWELL KEYBOARD DIVISION

The Federal Trade Commission has cleared the way for the Key Tronic Corporation's proposed acquisition of the keyboard division of Honeywell Inc. for $33 million in cash, notes payable and stock. The deal, announced in May, is expected to close at the end of the month, Key Tronic said Tuesday. Honeywell, based in Minneapolis, has keyboard plants in El Paso; Las Cruces, N. M., and Juarez, Mexico. Key Tronic is based in Spokane, Wash.

July 8, 1993

COMPANY NEWS; KEY TRONIC TO ACQUIRE HONEYWELL'S KEYBOARD BUSINESS

The Key Tronic Corporation said yesterday that it would acquire Honeywell Inc.'s keyboard operations for $33 million. If approved, the deal would make Key Tronic the world's largest computer keyboard maker, a company spokesman said. The transaction involves cash, a note payable to Honeywell and shares of Key Tronic that would give Honeywell a 7 percent stake in the Spokane, Wash., company. Key Tronic, which had sales of $124 million last year, said the deal would nearly double its production ca...

May 28, 1993

BUSINESS PEOPLE; Key Tronic Relinquishes Management to Group

By LAWRENCE M. FISHER

The Hiller Group, a corporate management firm, will take over management of the Key Tronic Corporation, a maker of personal computer keyboards based in Spokane, Wash., according to an agreement announced yesterday by the companies. Under the accord, Stanley Hiller has been elected Key Tronic's chief executive and was named to its board. Royce G. Pearson, also a member of the Hiller Group, has been elected president and chief operating officer. Wendell J. Satre, Key Tronic's chairman and acting ...

March 3, 1992

BUSINESS PEOPLE; Citing Rift With Board, Key Tronic's Chief Quits

Alfred T. Zirkle said yesterday that he had resigned as the head of the Key Tronic Corporation, a maker of computer keyboards, because of disagreements with his board over the company's future direction. Mr. Zirkle, 45, said he planned to pursue work in the emerging notebook computer industry, but would not elaborate.

August 17, 1991

COMPANY NEWS; Key Tronic and Minebea End Talks

SPECIAL TO THE NEW YORK TIMES

The Key Tronic Corporation said it had ended its negotiations with the Minebea Company of Japan, which was interested in acquiring the manufacturer of computer keyboards and related products. Minebea, a large manufacturer of miniature ball bearings and electronic components based in Tokyo, had initially approached Key Tronic late last year and proposed a merger or joint venture.

August 5, 1986

New Talks On Key-tronic

The Key-tronic Corporation, the nation's largest independent maker of computer keyboards, and the Minebea Company ended negotiations yesterday for Minebea to buy 30 percent of Key-tronic. However, the two concerns opened new talks that could lead to Minebea acquiring all of the troubled Spokane, Wash., company in a stock swap.

June 27, 1986