Sypris' Electronics Group Sales Fall 38%
LOUISVILLE, KY -- Sypris Solutions today reported first-quarter reported revenue from continuing operations of $62.9 million, down from $67.7 million for the prior year.
For the period ended April 4, the net loss from continuing operations was $2.4 million, an improvement from a net loss of $11.5 million last year. The results include $400,000 in restructuring charges.
The quarterly results do not include the company’s Test & Measurement segment, which was divested on Oct. 26, 2009.
The Electronics Group reported sales of $18.8 million, down 37.7% from $30.2 million the prior year, primarily as a result of a government delay on the production of a secured communication program that had a $6.9 million impact on the quarter, and a reduction in sales of certain older programs. Gross profit for the quarter increased $300,000. Gross margin increased to 18.9% of revenue, up from 10.8% for the prior year quarter.
Overall gross margin rose to 9.6% of revenue, up from 0.8% in the first quarter last year and 8.8% sequentially. Margin expansion continued to be driven by the positive impact of process improvements, increased productivity and significantly lower operating costs.
Net debt remains $6.1 million.
President and CEO Jeff Gill said, “In the near term, the outlook for our Electronics Group is expected to benefit from the anticipated resumption of secure communication product shipments to the government in the third quarter, while the long-term is expected to benefit from further gross margin expansion as a result of new program launches, process improvements, increased productivity and lower costs driven by Lean and Six Sigma quality programs.”
