LOUISVILLE, KY -- Sypris Solutions reported a third-quarter net loss from continuing operations of $1.7 million, up from a net loss of $1.9 million for the prior year.

The current quarter's results include $600,000 in restructuring charges.

The results do not include the company’s former Test & Measurement segment, which was divested Oct. 26, 2009.

For the period ended Oct. 3, sales increased 16.3% sequentially to $73.4 million. Aerospace and defense sales rose 25%, while Industrial was up 13.2%. Gross profit increased 55.3% sequentially to $7.7 million, driven primarily by a 101.3% increase in A&D gross profit. Gross margin increased to 10.4% of revenue, up 260 basis points sequentially and 210 basis points from last year. EBITDA increased to $3 million, up from $900,000 sequentially and up from a loss of $200,000 for the third quarter last year.

Revenue in the firm's Electronics Group rose 25% sequentially to $20.7 million, reflecting the resumption of shipments that had been previously delayed by the Department of Defense. The electronics manufacturing services business unit had third-quarter 2009 sales of $25.6 million. Gross margins expanded to 25.8% of revenue, up from 16.0% sequentially. Gross profit for the quarter increased year-over-year to $5.3 million, or 25.8%.

CEO and president Jeff Gill said, “In the long-term, the outlook for our Electronics Group is expected to benefit materially from further gross margin expansion as a result of new program launches, process improvements, increased productivity and lower costs driven by Lean and Six Sigma quality programs."

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