TAMPA, FL – Sypris Electronics reported third quarter revenue of $10.1 million, up 53% year-over-year.

Shipments during the third quarter reflected the impact of the growing backlog, which has increased 27.2% since year-end 2019, while supporting a 62% increase in shipments year-to-date over the prior year.

Additionally, many of the challenges faced during the prior year with electronic component shortages and extensive lead-times have been resolved, the firm says.

For the quarter ended Oct. 4, Sypris Solutions reported revenue of $22.2 million, even with the prior-year period but up 29.2% sequentially. Net income was $3.5 million, compared to a net loss of $1.6 million in the third quarter of 2019.

The global economic impact of the Covid-19 pandemic lessened in several of the company’s markets during the quarter, while the essential nature of the defense and communication programs served by Sypris Electronics continued to enable this segment to sustain operations at or above planned levels.

During the third quarter, 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.

Sypris Electronics also announced contracts to manufacture a variety of electronic assemblies for mission-critical munition dispensing systems, with production to begin during 2020 and continue into 2021.

"Our operations performed extremely well during the third quarter and returned to profitability as demand rebounded from the adverse conditions incurred during the second quarter," said Jeffrey T. Gill, president and CEO. "In the face of the challenges brought on by the pandemic, our businesses pulled together to protect our employees, while balancing the needs of our customers, communities and business partners during these difficult times. The effort and execution by our people resulted in a strong performance for the third quarter.

"Revenue for Sypris Electronics increased 52.6% from the prior-year quarter, reflecting its strong backlog and improved electronic component availability. Sales are up 62% for the first nine months of 2020 compared to the prior year, while backlog has increased 27.2% 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.

"Demand from customers serving the automotive, commercial vehicle, sport utility, and off-highway markets recovered in the third quarter, resulting in a 62% increase in revenue sequentially. The outlook going forward has also improved significantly for these markets. Recent contract awards in our energy markets are also expected to contribute in the fourth quarter and early 2021, as we remain vigilant in our pursuit of new opportunities to support our growth objectives in the coming year.”

For the nine months ended Oct. 4, Sypris Solutions reported revenue of $61.7 million, down 6.9% year-over-year. Net income was $2.8 million, compared to a net loss of $3.1 million for the prior-year period.

"First and foremost, we remain focused on the health and safety of our employees, their families and our customers. While the future potential impact of a second wave of the pandemic remains unknown, demand has strengthened significantly from customers serving the automotive, commercial vehicle and sport utility markets. Similarly, demand from customers in the defense and communications sector remains robust. While the energy market continues to be volatile, we continue to see wins on important large projects around the world.

"As we close out this year and prepare for 2021, we remain focused on meeting the important needs of our customers who serve defense, communications, energy, transportation, and other critical infrastructure industries. With a strong backlog and recovering markets, we believe the outlook for the coming year has the potential to be one of positive topline growth and further margin expansion for Sypris. We are increasingly optimistic about the coming year."

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