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Sypris Solutions Inc. has reported revenue of $26.9 million for the first quarter ended April 3, 2016, down from $37 million for the prior year period. Additionally, the company reported a net loss of $5.1 million, or $0.26 per share, as compared to a loss of $13 million, or $0.66 per share, for the prior year comparable period.
"Sypris Electronics continued its efforts to diversify its portfolio of products and services in response to the challenges posed by the U.S. defense industry," said Jeffrey T. Gill, president and chief executive officer. "During the first quarter of 2016, we saw significant year-over-year improvement, with multi-year orders increasing to $29 million during the quarter from $4.6 million for the prior year period. We are pleased to note that the strength in orders was across the board, including demand for our legacy products, trusted manufacturing, engineering services, and new technologies where the Sypris Cyber Range continues to gain important momentum, and our patented identity authentication solution, SiOMetrics, is being evaluated for use in a variety of applications to secure automotive, industrial automation and smart cities projects. Progress within these platforms represents an important step towards the achievement of our long-term margin expansion and diversification objectives."
"Sypris Technologies continues to adjust manpower and overhead expenses to reflect the continued softness in the commercial vehicle market that started during the fourth quarter of 2015. We have worked diligently to control our costs while taking actions to rebuild and diversify our customer base," Gill continued.
Revenue for Sypris Technologies decreased 36.5% to $17.8 million in the first quarter of 2016 compared to $28.1 million for the prior year period, primarily as a result of softness in the commercial vehicle industry and the divestiture of the Morganton, North Carolina facility in July 2015. Gross profit for the quarter was a loss of $0.7 million, compared to a loss of $4.1 million for the same period in 2015.
Revenue for Sypris Electronics was $9.1 million in the first quarter of 2016 compared to $8.9 million in the prior year period, reflecting new cyber related sales and an increase in product sales. Partially offsetting this was a decrease in electronic manufacturing services due to the completion of a program in 2015. Gross profit for the quarter was $1.4 million, compared to $0.9 million for the prior year period, primarily reflecting a favorable mix in sales of higher margin products and services in addition to a reduction in the overhead structure.
Gill added, "We will continue to concentrate on daily execution within both of our businesses. The company is working to adjust manpower and overhead expenses to align with projected levels of customer demand and market requirements, while optimizing our ability to bring in potential new business. Sypris Electronics has continued to invest in a number of product development projects and is encouraged by the award of a significant engineering services contract in the defense sector during the first quarter."
Sypris Solutions is a diversified provider of outsourced services and specialty products. The Company performs a wide range of manufacturing, engineering, design and other technical services, typically under multi-year, sole-source contracts with corporations and government agencies in the markets for truck components and assemblies and aerospace and defense electronics. For more information about Sypris Solutions, visit www.sypris.com.