TAMPA, FL – Sypris Electronics reported revenues of $9.7 million in the second quarter, up 28.3% year-over-year and 11.5% sequentially.

Shipments reflected a customer base serving the defense and communications markets that remained open at near normal levels throughout the period. Many of the challenges faced during the prior year with electronic component shortages and extensive lead-times have been resolved, the firm says.

The order backlog increased 22.5% since year-end 2019.

Subsequent to quarter-end, Sypris Electronics announced an initial contract award from the Leonardo DRS Naval Electronics business unit to manufacture and test electronic assemblies for a shipboard system with production to begin during 2020.

"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 of Sypris Solutions. "In the face of unprecedented challenges brought on by the pandemic, our businesses pulled together to protect our people, while balancing the needs of our customers, communities and business partners during these difficult times.

"Revenue for Sypris Electronics increased 28.3% from the prior-year quarter and 11.5% sequentially, reflecting its strong backlog and improved electronic component availability. Sales are up 67.6% for the first half of 2020 compared to the prior year, while backlog has increased 22.5% since year-end. We have been designated as an essential supplier to our customers serving the defense and communications industries, and, as such, our team has done an excellent job making sure we were able to provide for their increasing needs during the period.”

Sypris Solutions secured a $3.6 million PPP loan in May. The proceeds have been used to cover payroll costs, rent and utility costs in accordance with the terms and conditions of the loan.

For the six months ended July 5, Sypris Solutions reported revenue of $39.6 million, down 10% year-over-year. The company reported a net loss for the six-month period of $700,000, compared with a net loss of $1.5 million for the prior year period.

“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 environment is changing rapidly with regard to customers, suppliers and public policy, and we are paying close attention to developments on a daily basis. The extent and duration of the impacts that the pandemic may have on our business are not known at this time, but we are monitoring developments as we seek to navigate the challenging conditions in our markets.

"As anticipated, the impact of the pandemic has been felt less on customers in defense-related markets, and, as a result, the outlook for Sypris Electronics remains positive.”

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