Sypris Wins Two Follow-On Contract Awards for Electronic Warfare Communications and Navigation Program

Rhea-AI Summary

Sypris Electronics, a subsidiary of Sypris Solutions, has received two multimillion-dollar contract awards to manufacture advanced integrated electronic warfare and communications avionics system modules for a U.S. global defense contractor. The production is expected to begin in 2023 and continue until mid-year 2025. The program is for an American family of stealth multirole combat aircraft, with plans to build over 700 of the various versions through 2030 for sale to the U.S. and its allies.

Advanced Integrated Electronic Avionic Module Assemblies for Strategic Combat Aircraft Platform

TAMPA, Fla.--(BUSINESS WIRE)-- Sypris Electronics, LLC, a subsidiary of Sypris Solutions, Inc. (Nasdaq/GM: SYPR), announced today that it has recently received two full rate production follow-on multimillion-dollar contract awards from a U.S. global defense contractor to manufacture advanced integrated electronic warfare and communications avionics system modules for one of the largest Government DoD programs. Production is expected to begin in 2023 and will continue into mid-year 2025. Terms of the agreement were not disclosed.

The program is for an American family of single-seat, single-engine, all-weather stealth multirole combat aircraft that is intended to perform both air superiority and strike missions. The aircraft is also able to provide electronic warfare and intelligence, surveillance, and reconnaissance capabilities. According to news sources, the aircraft’s prime contractor plans to build over 700 of the various versions of the aircraft through 2030 for sale to the U.S. and its allies.

The first operational supersonic short take-off and vertical landing stealth fighter, the aircraft emphasizes low observables, advanced avionics and sensor fusion that enable a high level of situational awareness and long-range lethality. The U.S. Air Force considers the aircraft to be its primary strike fighter for conducting enemy air defense suppression missions, owing to its advanced sensors and mission systems.

Sypris will produce and test the advanced integrated electronic avionics system modules for the Communications, Navigation and Identification suite of the aircraft. This system supports the simultaneous operation of multiple critical functions, such as identification of friend or foe, precision navigation, and various secure voice and data communications.

“We are pleased to receive these follow-on awards supporting this strategic combat aircraft platform defending our national security and the security of our global allies,” said Mark R. Kane, Vice President & General Manager of Sypris Electronics. “Sypris Electronics has been involved with the production of these complex electronic assemblies for many years, and are honored to continue our long-standing partnership with this important customer.”

Sypris Electronics is a trusted provider of engineering and manufacturing services for complex, mission-critical electronic solutions for customers in the Defense, Space, Deep Sea Communications and Industrial markets. Backed by over 50 years of experience, the Company specializes in producing electronics for high-cost-of-failure applications. For more information, please visit www.sypriselectronics.com.

Forward-Looking Statements

This press release contains “forward-looking” statements within the meaning of the federal securities laws. Forward-looking statements include our plans and expectations of future financial and operational performance. Each forward-looking statement herein is subject to risks and uncertainties, as detailed in our most recent Form 10-K and Form 10-Q and other SEC filings. Briefly, we currently believe that such risks also include the following: the fees, costs and supply of, or access to, debt, equity capital, or other sources of liquidity; our failure to achieve and maintain profitability on a timely basis by steadily increasing our revenues from profitable contracts with a diversified group of customers, which would cause us to continue to use existing cash resources; cost, quality and availability or lead times of raw materials and electronic components, natural gas or utilities including increased cost relating to inflation; dependence on, retention or recruitment of key employees and highly skilled personnel and distribution of our human capital; the cost, quality, timeliness, efficiency and yield of our operations and capital investments, including the impact of inflation, tariffs, product recalls or related liabilities, employee training, working capital, production schedules, cycle times, scrap rates, injuries, wages, overtime costs, freight or expediting costs; volatility of our customers’ forecasts and our contractual obligations to meet current scheduling demands and production levels, which may negatively impact our operational capacity and our effectiveness to integrate new customers or suppliers, and in turn cause increases in our inventory and working capital levels; our failure to successfully complete final contract negotiations with regard to our announced contract “orders”, “wins” or “awards”; significant delays or reductions due to a prolonged continuing resolution or U.S. government shut down reducing the spending on products and services; adverse impacts of new technologies or other competitive pressures which increase our costs or erode our margins; breakdowns, relocations or major repairs of machinery and equipment, especially in our Toluca Plant; the termination or non-renewal of existing contracts by customers; the costs and supply of insurance on acceptable terms and with adequate coverage; the costs of compliance with our auditing, regulatory or contractual obligations; health care or other benefit costs; our failure to successfully win new business or develop new or improved products or new markets for our products; war, geopolitical conflict, terrorism, or political uncertainty, including disruptions resulting from the Russia-Ukraine war arising out of international sanctions, foreign currency fluctuations and other economic impacts; our reliance on a few key customers, third party vendors and sub-suppliers; inventory valuation risks including excessive or obsolescent valuations or price erosions of raw materials or component parts on hand or other potential impairments, non-recoverability or write-offs of assets or deferred costs; disputes or litigation involving governmental, supplier, customer, employee, creditor, stockholder, product liability, warranty or environmental claims; failure to adequately insure or to identify product liability, environmental or other insurable risks; unanticipated or uninsured product liability claims, disasters, public health crises, losses or business risks; our inability to patent or otherwise protect our inventions or other intellectual property rights from potential competitors or fully exploit such rights which could materially affect our ability to compete in our chosen markets; changes in licenses, security clearances, or other legal rights to operate, manage our work force or import and export as needed; cyber security threats and disruptions, including ransomware attacks on our systems and the systems of third-party vendors and other parties with which we conduct business, all of which may become more pronounced in the event of geopolitical conflicts and other uncertainties, such as the conflict in Ukraine; possible public policy response to a public health emergency, including U. S or foreign government legislation or restrictions that may impact our operations or supply chain; or unknown risks and uncertainties. We undertake no obligation to update our forward-looking statements, except as may be required by law.

View source version on businesswire.com: https://www.businesswire.com/news/home/20231106636342/en/

Lawrence J. Bernicky

Vice President of Finance

(813) 972-6040

Source: Sypris Electronics, LLC

FAQ

Who is the parent company of Sypris Electronics?

Sypris Solutions, Inc. is the parent company of Sypris Electronics.

What type of contract awards did Sypris Electronics receive?

Sypris Electronics received two full rate production follow-on multimillion-dollar contract awards.

What will Sypris Electronics manufacture?

Sypris Electronics will manufacture advanced integrated electronic warfare and communications avionics system modules.

When will the production begin and end?

The production is expected to begin in 2023 and continue until mid-year 2025.

What is the program for?

The program is for an American family of stealth multirole combat aircraft.

How many aircraft versions are planned to be built?

Over 700 versions of the aircraft are planned to be built through 2030.