TAMPA, FL – Sypris Electronics reported fourth quarter revenue of $8.6 million, down 2.3% year-over-year and up 30.4% sequentially.

Revenue was affected by a delay in production resulting from final pricing negotiations on a follow-on program. Sequential increases reflected the resolution of some of the challenges faced during the year with shortages of certain electronic components.

During the fourth quarter, Sypris Electronics announced it received a contract award from Collins Aerospace to manufacture and test electronic assemblies for the power management, environmental control and life support systems of the Deep-Space Orion spacecraft program. Before year-end, the firm announced it received a contract award from BAE Systems to manufacture and test electronic power supply modules for a large mission-critical military program, with production to begin in 2020.

"The global macroeconomic environment is experiencing uncertainty and volatility as a result of the Covid-19 outbreak, and we are closely monitoring the developments and will act promptly to mitigate the risks to our business as we look forward to 2020," said Jeffrey T. Gill, president and CEO.

Sypris Solutions reported total revenue of $21.6 million for the fourth quarter, a decrease of 10% year-over-year. The company reported a net loss of $900,000, compared to a net loss of $200,000 for the fourth quarter of 2018.

For 2019, the company reported revenue of $87.9 million, down 0.1% compared to 2018. Sypris Solutions reported a net loss of $3.9 million for 2019, compared to a net loss of $3.5 million the prior year.

"The ramp up of the recently announced new programs is expected to mitigate the expected softness coming from the Class 8 commercial vehicle market. The president of the United States’ proposed fiscal year 2021 budget request would provide $740 billion of funding for national security, $705 billion of which is for the Department of Defense. Maintaining defense spending at this level is expected to support program growth and market expansion for aerospace and defense participants during the coming years. The energy market has benefited from oil and natural gas infrastructure development, providing opportunities to grow revenue from our product offerings.

"Our performance in early 2020 has improved sequentially from the fourth quarter of 2019 and is consistent with the outlook discussed on our previous earnings call in November. At this point our business has not been materially impacted by Covid-19, but the environment appears to be changing rapidly with regard to customers, suppliers and public policy, and we are paying close attention to developments on a daily basis. First and foremost, we are focused on the health and safety of our employees, their families and our customers. We are closely monitoring local, state and federal government agencies and will follow all recommendations. The extent and duration of the impacts that Covid-19 may have on our business are not known at this time, but we are monitoring developments in order to be in a position to take appropriate action."