LOUISVILLE, KY – Sypris Electronics reported first quarter revenue of $3.4 million, down 37% year-over-year.

Revenue for the quarter was affected by shortages of certain electronic components and extensive lead-time issues in the electronics manufacturing industry, as well as the delay of shipments pending the successful resolution of a new contract. The low volumes in the first quarter also reflect shipments accelerated into the fourth quarter of 2018, as the company planned for the implementation of a new ERP system effective in January of this year.

Sypris Electronics posted a loss of $700,000, compared to a loss of $100,000 for the prior-year period.

Sypris Solutions reported first quarter revenue of $19.6 million, nearly flat with the prior-year period. The company posted a net loss of $2.3 million, compared to a loss of $1.8 million in the first quarter of 2018.

Revenue for Sypris Technologies increased 11.3% to $16.1 million year-over-year, primarily reflecting increased sales volume with customers in the commercial vehicle market. Gross profit was $2.3 million, or 14.3% of revenue, compared to $2.1 million, or 14.5% of revenue, for the same period in 2018. Gross profit increased 9.3% during the quarter, while operating income increased 245% to 6.5% of sales, up from 2.1% for the first quarter of 2018.

Sypris Solutions reaffirmed its outlook for 2019, including revenue of $100 million to $110 million for the year, representing 19% year-over-year growth at the midpoint.

“We are pleased with the year-over-year revenue growth at Sypris Technologies,” said Jeffrey T. Gill, president and CEO. “Shipment volumes remained strong in the quarter to support demand coming from the automotive and commercial vehicle markets. Energy products also performed well during the period, despite some orders that shifted out of the quarter.

“While shipments at Sypris Electronics were generally in line with expectations for the quarter, its results were adversely affected by the labor inefficiencies and overhead absorption challenges that accompanied the lower shipment volumes. We expect to see progressively higher levels of shipments sequentially through 2019, with a full recovery to normal deliveries during the second half of the year.

“We continue to see strong demand in each of our primary markets to support our revenue outlook for the balance of the year. Our customer base and the markets we serve remain resilient and are considerably more diversified than at any point in our recent history. The combination of our expected revenue growth and lower fixed manufacturing overhead costs, driven by effective cost-reduction actions, are the keys to our return to profitability for 2019.”

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