LOUISVILLE, KY – Sypris Electronics reported first quarter revenue was $9 million, an increase of 32.4% year-over-year.

Gross profit for the quarter ended Apr. 3 was $1.4 million, or 15.3% of revenue, compared to $600,000, or 9.5% of revenue, for the same period in 2021 due to higher volumes and a favorable mix.

Shipments under a full-rate production contract began ramping up during the fourth quarter of 2021 and continued through the first quarter of 2022, driving the significant increase in revenue. Additionally, increased shipments for a communications program contributed to the growth over the prior-year comparable period. Supply chain constraints partially offset these gains, limiting shipments on certain other programs during the first quarter.

Sypris Electronics announced new contract awards during the quarter, including a multi-year follow-on contract to produce and test electronic power supply modules for a large mission-critical US Navy program, which is expected to result in a meaningful growth in shipments from existing levels beginning in 2022, and a multi-year follow-on contract award to produce and test a variety of electronic power supply modules for a mission-critical, long-range, precision-guided, anti-ship missile system, which is expected to result in a material increase in production volume from existing levels beginning in 2022.

“Backlog for Sypris Electronics continued to increase on both a year-over-year and on a sequential basis, resulting in our largest book of business in over a decade, with deliveries now scheduled well into 2023,” said Jeffrey T. Gill, president and CEO, Sypris Solutions. “This record backlog is expected to support a significant expansion of the top line during the year, which we have attempted to further protect by securing customer funding on certain key programs to lock in multi-year component purchases.

“Demand is up considerably from customers serving the automotive, commercial vehicle and sport utility markets, with Class 8 forecasts showing year-over-year production increases of 11.9% for 2022 and an additional 8.7% in 2023. Similarly, demand from customers in the defense and communications sector remains robust, while the outlook for the energy market continues to move in the right direction.”

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