Key Tronic Corp., a Spokane Valley-based contract manufacturer, has raised its financial guidance for its fiscal 2010 second quarter that ends Dec. 26, citing an upswing in demand and improved operating efficiencies.

The company says it now expects revenues for the quarter to total $42 million to $44 million, up from previous estimates of $38 million to $43 million. That higher revenue is expected to improve factory utilization and efficiencies, it says, which should boost Key Tronic's net income for the quarter to between 10 cents and 13 cents a share, up sharply from the previous estimated 2 cents to 5 cents a share.

"We are seeing stronger than anticipated demand from many of our customers in a wide variety of industries, including our new customer programs, which are ramping up faster than projected," says President and CEO Craig Gates.

The company expects to report its results for the current quarter on Jan. 26.

In October, it reported net income of $300,000, or 3 cents a share, for its first quarter ended Sept. 26, which was down slightly from $400,000, or 4 cents a share, from the year-earlier quarter. It reported revenue of $41.3 million in the most recent quarter, down from $48.2 million in the year-earlier period.

Key Tronic said in October that it had paid down all of its debt as of the end of the quarter. The company announced earlier in the quarter that it had entered into a $20 million revolving credit facility with Wells Fargo Bank N.A.