Boston, MA 05/13/2014 (wallstreetpr) – It will not be business as usual for Sypris Solutions, Inc. (NASDAQ:SYPR) in the near-term. The company anticipates near-term revenue challenges as many of its customers reduce their spending over uncertainties. The revenue warning comes hot on the heels of a quarterly financial report that showed improvement in the company’s top-line and bottom-line.
Though revenue challenges are predicted in the near-term, the company believes the impact will not lead to widespread trouble in the bottom-line if any. According to the management, the early warning should lead to more aggressive costs and expenses controls to cushion the bottom-line in the tepid revenue season.
Improving capacity
Though Sypris Solutions, Inc. (NASDAQ:SYPR) warned over near-term revenue hiccup, the company is bullish of the long-term. As such, the company is working on capacity improvement as it predicts strong demand in its Industrial Group segment. Improving capacity should help the company to meet customer demand without unnecessary costs or delays that can impact the company’s reputation are profits.
The company is particularly excited by the positive prospects in the commercial vehicle market. In fact, the CEO Jeffrey T. Gill observed that 1Q financial performance was supported by a rebound in the demand from commercial vehicles customers.
1Q returns profit
Sypris Solutions, Inc. (NASDAQ:SYPR) generated a profit of $1.7 million or 8 cents per diluted share in 1Q2014. That showed an impressive improvement from a net loss of $6.5 million or 34 cents per share in 1Q2013. The quarter saw revenue up 7 percent to $84.2 million.
The encouraging 1Q performance drew support from 16 percent growth in Electronics Group revenue and 7 percent growth in Industrial Group revenue.
As Sypris Solutions, Inc. (NASDAQ:SYPR) predicts impact on revenue in relation to foreseen softness in the industrial segment, the company believes that the electronic segment will deliver good results to mitigate the potential impact. CEO Gill said the company intends to improve efficiencies with a view of supporting savings and bottom-line growth.
