Rising Backlogs Give Sypris Optimism
LOUISVILLE, KY -- Sypris Electronics reported revenue of $6.6 million in the third quarter, as an increase in sales from EMS services partially offset the sale of the company's Cyber Security Solutions unit.
Sales from electronics manufacturing services increased $1 million from the prior year, when the firm recorded $3.8 million in EMS revenue.
The gross loss for the quarter was $400,000, compared to profit of $500,000 the prior year period, primarily reflecting lower volumes and an unfavorable mix in sales of products and services. Backlog for the retained Sypris Electronics business was $30.3 million at the end of the quarter, compared to $26.8 million for the second quarter 2016 and $12 million in 2015.
Sypris Electronics began its move to a new manufacturing facility in Tampa, FL, during the quarter, which is expected to reduce annual operating facility costs by approximately $2 million beginning in 2017.
Overall company revenue was $21.4 million, down from $38.4 million for the prior year period, reflecting reduced demand for commercial vehicles, rebalancing of inventory by certain customers and the impact of the sale of the Cyber Security Solutions business to Analog Devices during the quarter. Net income was $21 million, reflecting a gain on the sale of the CSS business.
CEO and president Jeff Gill said, “Sypris Electronics will continue to be based in Tampa and will focus on building upon its core capabilities as a trusted manufacturer for customers such as Harris, Lockheed Martin, Northrop Grumman, Rockwell Collins, TE SubCom and now Analog Devices. The proceeds from the sale were used to repay the Company’s senior debt and will be available to reinvest in the business to support future growth initiatives.”
