LOUISVILLE, KY – Sypris Electronics reported third quarter revenue of $6.6 million, up 6.5% year-over-year.
Revenue was affected by supply chain issues that drove gross profit lower than expected. Gross profit for the quarter was a loss of $200,000, compared to a loss of $100,000 for the prior-year period.
During the quarter, Sypris Electronics announced it received a multi-year contract award from Northrop Grumman to manufacture a variety of mission-critical electronic assemblies for a large government Department of Defense program, with production beginning in 2019 and continuing into 2021.
“The financial results of Sypris Electronics were affected during the third quarter by two discrete material issues, which resulted in lower shipment levels than planned,” said Jeffrey T. Gill, president and CEO. “The first issue involved a temporary interruption in the supply of a coating applied by a subcontractor to one of the components used on a high-volume program. The second issue involved a delay in the prime contractor’s approval of a substitute component on a program after our customer had previously approved the component. Both issues were resolved late in the third quarter, allowing shipments to rebound to normal run rates by quarter end.”
Sypris Solutions reported total consolidated revenue for the quarter ended Sept. 29 increased 5.5% year-over-year to $22.3 million.
Revenue for Sypris Technologies increased 5.4% to $15.7 million during the quarter compared to the prior-year period.
For the nine months ended Sept. 29, Sypris Solutions reported revenue of $66.3 million, compared with $64 million for the first nine months of 2018. The company posted a net loss for the nine-month period of $3.1 million, compared with a net loss of $3.3 million for the prior-year period.
Sypris Solutions expects fourth quarter revenue in the range of $23 million to $25 million. For the year, the company expects to achieve revenues of $89 million to $91 million. The firm’s preliminary outlook for 2020 includes revenue of $95 million to $105 million, representing 11% year-over-year growth at the midpoint.