LOUISVILLE, KY – Sypris Electronics reported fourth quarter revenue increased 72.4% year-over-year to $7 million.

The company posted a loss of $100,000 for the quarter, compared to a loss of $1.2 million for the prior-year period.

During the quarter, the firm announced several new contract awards for the production of electronic assemblies for use in US military, space and global deep sea communications programs.

Sypris Solutions’ total fourth quarter revenue increased 7.6% year-over-year to $21.5 million. The firm posted a net loss of $1.2 million, compared to a net loss of $4.6 million in the fourth quarter of 2016.

Selling, general and administrative expense declined 39% compared with the prior-year period.

“Sypris Electronics’ results were affected during the fourth quarter by an unfavorable revenue mix, which included the startup of new programs and shortages of certain electronic components,” said Jeffrey T. Gill, president and CEO. “Certain higher volume, higher margin programs were replaced with the startup of new programs. Additionally, we incurred charges for certain year-end inventory adjustments during the fourth quarter. Despite the fourth quarter results, Sypris Electronics posted revenue growth and margin expansion for the full year 2017 over 2016. The majority of the cost reductions affecting Sypris Electronics were complete as we entered 2017, and our team continued to control costs while meeting customer expectations throughout the year.

“Electronic component shortages and extensive lead-time issues are becoming prevalent in the electronic manufacturing industry. We are working with our customers to qualify alternative components or suppliers to mitigate the impact on our business. The majority of our aerospace and defense programs require specific components or components that are sole-sourced to specific suppliers. Therefore, the resolution of supplier constraints requires coordination with our customers or the end-users of the products.”

For the full year ended Dec. 31, Sypris Solutions reported revenue of $82.3 million, down 115.4% year-over-year. The firm recorded a net loss for the year of $10.8 million, compared to net income of $6 million in 2016.

Sypris Solutions raised 2018 revenue guidance to $90 million to $96 million.

“Our markets are poised to provide Sypris with the opportunity for healthy, double-digit revenue growth during 2018,” said Gill. “New contract awards and market expansion are expected to occur in each of our targeted markets for energy, commercial vehicle and aerospace and defense products.”