LOUISVILLE, KY -- Sypris Solutions today reported revenue fell 10.5% to $126 million for its third quarter compared to a year ago. The company reported a net loss of $800,000, down from a profit of $3 million. Most of the problems stemmed from the company's industrial and electronics groups.

Electronics' sales fell on a launch delay of a new classified program for the U.S. Government. That program is now expected to reach full ramp in 2007, said Jeffrey T. Gill, president and chief executive.
Industrial sales to Ford fell 39% and had "a material impact on revenue and margins," Gill said.

The electronics group had sales of $32.9 million in the quarter, down 29%. Gross profit fell 39% to $5.1 million. Net orders were $37.7 million and backlogs grew 5% sequentially from the second quarter to $96.3 million. "We expect our electronics group to resume its top line growth during the coming year," Gill said.

However, electronics is forecasting lower revenue and earnings for fourth quarter to reflect the rescheduling for the classified programs. Thus, the company lowered fourth quarter guidance to sales of $115 million to $125 million and a loss of $900,000 to $1.8 million.

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