Completion of the testing and evaluation phase results in full production
System for adding electronic attack capability to protect naval vessels
Sypris Electronics, LLC, a subsidiary of Sypris Solutions, Inc. (Nasdaq / GM: SYPR) announced today that it recently received a full manufacturing award from the US Department of Manufacturing’s chief contractor for manufacturing and testing multiple electronic power supply modules for a major mission-critical program of the US Navy. Proceedings are expected to begin in the second half of 2021. The terms of the agreement have not been disclosed.
The program is a program to improve electronic warfare for the US Navy. The upgrade will provide an opportunity to actively jam incoming missiles that threaten a warship, lure replicas and quickly adapt to evolving threats. Improvements in the e-attack section will provide integrated countermeasures against radio frequency targeting and extended frequency range according to the Navy.
The system is software-defined, which means that unlike analog radars of the past, transmitters and receivers can be easily tuned to send and receive different waveforms and allow the system to be more easily adaptable.
The adaptability to active electronic attack comes as foreign aggressors develop several new classes of missiles simultaneously at considerable speeds. Systems like this program and new targeted energy weapons are part of the Navy’s commitment to improving its chances of surviving a conflict without having to invest in expensive new missile systems.
The system’s ability to change the game for non-kinetic electronic attack options has the potential to do much more. From advanced communications to multifunctional waveforms, the system’s multifunctional applications will provide enhanced mission capabilities for the U.S. Navy, while providing opportunities for future cost, size, weight, and power reductions, according to the U.S. Naval Institute.
“This award envisions a transition to full production from low-speed initial production once the operational testing and evaluation phase has been successfully completed,” said Jim Long, vice president and general manager of Sypris Electronics. “Our customer is a world leader in the design and delivery of military radars, sensors and related products. We are pleased to have this opportunity to expand our relationship with this important customer.”
Sypris Electronics is a reliable provider of electronic solutions, meeting the needs of customers to build complex, mission-critical electronic and electro-mechanical devices and integrated systems. Backed by 50 years of experience, Sypris ‘engineering and manufacturing services span the life cycle of our customers’ products within a culture of continuous improvement and Six Sigma / Lean thinking. Partners from a number of first-class agencies and companies in the Military (DOD), Space, Medical, Underwater and Industrial markets team with Sypris to deliver electronics with high reliability, built in strict compliance with regulated requirements. For more information, please visit www.sypriselectronics.com.
Statements for the future
This press release contains forward-looking statements within the meaning of federal securities laws. The forward-looking statements include our plans and expectations for future financial and operational results. Such statements may relate to the company’s revenue, profit and other financial and operational measures, our liquidity, our ability to mitigate or manage COVID-19 disruptions, and the impact of COVID-19 and economic conditions on our future operations, among other issues.
Any future statement here is subject to risks and uncertainties, as detailed in our most recent Form 10-K and Form 10-Q and other SEC statements.
In short, we currently consider that such risks include the following: the impact of COVID-19 and economic conditions on our future operations; a possible public policy response to the pandemic, including legislation or restrictions that may affect our operations or supply chain; our failure to successfully complete the final contract negotiations with respect to the “orders”, “profits” or “prizes” we have announced; our failure to successfully win a new business; termination or non-renewal of existing contracts by customers; our failure to achieve and maintain profitability in a timely manner by constantly increasing our revenues from lucrative contracts with a diversified group of customers, which would force us to continue to use existing cash resources; the cost, quality, timeliness, efficiency and profitability of our operations and capital investments, including the impact of tariffs, staff training, working capital, production schedules, cycle times; dependence on, retention or recruitment of key employees and distribution of our human capital; disputes or litigation involving government, suppliers, customers, employees, creditors, warranty claims; our inability to develop new or improved products or new markets for our products; price, quality and availability or time for execution of raw materials and electronic components; we rely on several key third party customers, suppliers and subcontractors; risks of valuation of inventories, including excessive or obsolete valuations or erosion of prices of raw materials or components by hand or other potential impairments, non-recoverability or write-off of assets or deferred costs; lack of adequate insurance or identification of product liability, environmental or other insurance risks; unforeseen or uninsured disasters, public health crises, losses or business risks; instability of our customers’ forecasts, planning requirements and production levels, which negatively affect our operational capacity and efficiency to integrate new customers or suppliers and in turn cause an increase in the levels of our inventories and working capital; the cost of complying with our audit, regulatory or contractual obligations; our inability to patent or otherwise protect our inventions or other intellectual property from potential competitors; adverse effects of new technologies or other competitive pressures that increase our costs or undermine our margins; US government spending on products and services, including time for budget decisions; changes in licenses, security clearances or other legal rights to operate, manage our workforce or import and export, if necessary; cybersecurity threats and disruptions; inaccurate data on markets, customers or business conditions; or unknown risks and uncertainties. We undertake no obligation to update our forward-looking statements unless required to do so by law.
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Lawrence J. Berniki
Vice President of Finance