LOUISVILLE, Oct. 21 -- Sypris Solutions' third-quarter revenue increased 72% to a record $118.5 million, up from $68.9 million a year ago. Net income rose to $3.5 million, versus $700,000, for the manufacturer of industrial and electronics products. The firm's chief executive issued a cautious near-term outlook on orders for electronics assemblies.

For the nine months ended Sept. 30, the company reported revenue increased 53% to a record $303.7 million and net income increased 87% to $8.9 million.

The firm's electronics group has sales of $40 million in the third quarter compared to $46.5 million last year and $37.7 million in Q2. Gross profit was $6.8 million, down from $8.2 million in 2003 and $7.5 million sequentially. The company cited a change in mix reflecting increased sales of lower margin circuit card assemblies and reduced sales of higher margin products to certain government agencies.

Year to date electronics revenue is $118.6 million, down from $127.7 million. Gross profit is $22.2 million compared to $25.2 million for the prior year period.

"Net orders for our Electronics Group declined during the quarter to $33.1 million, but backlog remained solid at $124 million," said Jeffrey T. Gill. "In the short-term, we believe the outlook for growth in this segment of our business will remain somewhat constrained at least until such time as the delays in program funding to accommodate our current military operations are successfully resolved. For the long-term, we remain optimistic that we are well-positioned on a series of major programs that should contribute to the company's growth."