TAMPA, FL – Sypris Electronics reported revenue of $8.5 million in the fourth quarter, down 1.2% year-over-year.

Fourth quarter shipments were impacted by delays on certain programs due to customer design modifications. However, management was able to largely offset these delays by increasing production on other programs, reflecting the impact of a growing backlog. Additionally, many of the challenges faced during the prior year with electronic component shortages and extensive lead-times have been resolved.

Gross profit was $1 million, or 11.9% of revenue, compared to $700,000 million, or 8.2% of revenue, for the same period in 2019.

In 2020, Sypris Electronics recorded revenue of $37 million, an increase of 41.3% year-over-year, reflecting its strong backlog and improved electronic component availability. Gross profit was $5.4 million, compared to $98,000 in 2019.

Subsequent to quarter-end, Sypris Electronics announced a contract award to manufacture and test a variety of electronic power supply modules for a mission-critical, long-range, precision-guided anti-ship missile system, with production to begin during 2021.

The essential nature of the defense and communication programs served by Sypris Electronics continued to enable this segment to sustain operations at planned levels throughout the year.

Sypris Solutions reported total revenue of $20.6 million for the quarter ended Dec. 31, a decrease of 4.7% year-over-year. Total net loss for the fourth quarter was $1.2 million, compared to $859,000 in the prior year quarter.

For the year ended Dec. 31, Sypris Solutions posted revenue of $82.3 million, down 6.3% compared to the same quarter in 2019. Net income was $1.7 million, compared to net loss of $3.9 million in 2019.

"While the economic headwinds and disruptions in 2020 had an impact on our results, we are pleased with our performance during the year. Our operations performed extremely well during 2020 and returned to profitability, despite the adverse conditions incurred during the second quarter, which continued during the course of the year," said Jeffrey T. Gill, president and CEO. "Last year presented historic challenges brought on by the pandemic, yet 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 year.

"Full year revenue for Sypris Electronics increased 41.3% from the prior year, reflecting its strong backlog and improved electronic component availability. Gross margin improved 1,420 basis points from the prior year to 14.6% in 2020, and recent contract wins are expected to provide important support for the growth of the business during the coming year. 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 2020.

"Our customer base and the markets we serve are considerably more diversified than at any point in our recent history. As an essential business, we have a responsibility to ensure that our defense, communications, energy, and transportation sectors remain vibrant. We will continue to monitor developments, act promptly to mitigate risks and take the necessary steps required to ensure deliveries continue to be made to our customers in a timely manner.

"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 the pandemic remains unknown, we are optimistic regarding the current economic outlook for 2021.

"The continuing momentum of new contract awards, when combined with increasingly positive market conditions, provide important support for our financial outlook for 2021, which includes 20% growth in the company’s top line, 200 to 300 basis points of further expansion in the company’s gross margin and strong double-digit percentage growth in cash flow generated from operations.

"As we 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 very positive for Sypris, and we approach our new fiscal year with optimism."

PCB EAST: The original East Coast technical conference and exhibition! Returning to the Boston suburbs in June 2021!

• Prev
• Next