TAMPA, FL – Sypris Electronics reported first quarter revenue increased 154.4% year-over-year, reflecting the improved availability of electronic components. Revenue for the quarter ended Apr. 5 was $8.7 million.

Gross profit was $1.1 million, or 12.6% of revenue, compared to a loss of $1.4 million, or 42.2% or revenue, for the same period in 2019. Orders increased 132.6% year-over-year, resulting in a 45.1% increase in backlog.

During the quarter, Sypris Electronics announced it received a new contract from BAE Systems to manufacture and test electronic power supply modules for a large mission-critical military program, with production to begin this year.

Sypris Solutions reported total first quarter revenue of $22.4 million, up 14.6% year-over-year and 3.7% sequentially, as shipments from new programs increased for both segments of the business. Net loss was $300,000, compared to net loss of $3 million in the first quarter of 2019. Operating income was $300,000, compared to operating loss of $2.7 million for the prior-year period.

The company experienced lower revenue late in the first quarter due to the global economic impact of the Covid-19 pandemic. The company expects this impact to increase during the coming months.

The firm secured a $3.6 million PPP loan in May.

"While the economic headwinds and disruptions in the quarter had an impact on our results, we are pleased with our performance during the period," said Jeffrey T. Gill, president and CEO. "Revenue for Sypris Electronics increased 154.4% from the prior-year first quarter, reflecting the resolution of some of the challenges we faced during the prior year with shortages of certain electronic components. As shipments rebounded to normal run rates, we continued to focus on improving operational performance.

"Our customer base and the markets we serve are considerably more diversified than at any point in our recent history. With that said, the global macroeconomic environment is experiencing uncertainty and volatility as a result of the Covid-19 outbreak. We are closely monitoring the developments and will act promptly to mitigate the risks to our business as we navigate through these uncertain times.

“Our performance in the first quarter of 2020 improved on both a year-over-year and sequential basis in terms of gross margin and operating income, and our business was not materially impacted by Covid-19 during the period until very late in the quarter. However, the environment is 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 to be in a position to take appropriate action.

"Our operations have remained open to meet the important needs of our customers who serve defense, energy, transportation and other critical infrastructure industries. We expect the road back for the economy to be a potentially uncertain journey. If accurate, we would anticipate the impact to be felt less on customers in defense-related markets and more on those who serve industrial, consumer and travel-related markets."