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Ransomware Attack Cost Keytronic Over $17 Million

Keytronic says the recent ransomware attack resulted in expenses and lost revenue totaling more than $17 million.

Electronics manufacturing services firm Keytronic revealed on Friday that the recent ransomware attack resulted in additional expenses and lost revenue totaling more than $17 million.

The company revealed the costs associated with the incident in a preliminary financial report for the fourth quarter of fiscal 2024.

“Due to this event, the Company incurred approximately $2.3 million of additional expenses and believes that it lost approximately $15 million of revenue during the fourth quarter,” Keytronic said.

However, it added, “Most of these orders are recoverable and are expected to be fulfilled in fiscal year 2025. Partially offsetting these additional expenses was an insurance gain in the amount of $0.7 million that was also recorded during the quarter.”

The cyberattack, discovered on May 6, resulted in disruptions at sites in the United States and Mexico. Operations at these sites were suspended for two weeks due to the incident.

The company initially reported in June that it had already incurred expenses of roughly $600,000 for external cybersecurity experts.

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The Black Basta ransomware group took credit for the attack on Keytronic, claiming to have stolen over 500 Gb of data, including financial documents, engineering files, HR information and other types of corporate data.  

Keytronic manufactures precision parts for the computer, telecoms, medical, industrial, automotive, and aerospace sectors. 

Related: Cost of Data Breach in 2024: $4.88 Million, Says Latest IBM Study

Related: Johnson Controls Ransomware Attack: Data Theft Confirmed, Cost Exceeds $27 Million

Related: MGM Resorts Says Ransomware Hack Cost $110 Million

Written By

Eduard Kovacs (@EduardKovacs) is senior managing editor at SecurityWeek. He worked as a high school IT teacher before starting a career in journalism in 2011. Eduard holds a bachelor’s degree in industrial informatics and a master’s degree in computer techniques applied in electrical engineering.

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