Sypris Wins Award for Electronic Warfare System Upgrade
June 08 2022 - 8:30AM
Business Wire
Multi-Year, Follow-On, Full-Rate Production
Contract
Sypris Electronics, LLC, a subsidiary of Sypris Solutions, Inc.
(Nasdaq/GM: SYPR), announced today that it has recently received a
multi-year, follow-on award from a U.S. DOD contractor to produce
and test multiple power supply modules for the upgrade of the
electronic warfare suite of an important U.S. fighter aircraft
program. Production is expected to transition to full-rate
production beginning in 2022. Terms of the agreement were not
disclosed.
The power supplies to be produced by Sypris will be incorporated
into a suite that will replace the functionally obsolete
self-protection system of existing aircraft. The upgrade is
intended to significantly improve the aircraft’s capability to
autonomously and automatically detect, identify and locate radio
frequency threats. Updating the electronic warfare suite is
critical to the aircraft, which is scheduled to be in service
through 2040.
According to news sources, the system will deliver fully
integrated radar warning, situational awareness, geolocation, and
self-protection capabilities to maximize mission effectiveness and
survivability of the aircraft in highly contested environments.
This advanced, all digital system enables deeper penetration
against modern integrated defense systems and provides rapid
response capabilities designed to protect the aircrew.
Further, the system will give current and future aircraft more
survivability when operating near or in contested airspace. The
system allows pilots to monitor, locate and jam enemy radars, as
well as deceive them about the aircraft’s position and heading, by
collecting and processing electromagnetic energy and
instantaneously creating a comprehensive, 360-degree picture of the
battlespace.
“This multi-year, follow-on award advances our partnership on
this mission critical, technically-advanced upgrade program,” said
Mark Kane, Vice President & General Manager of Sypris
Electronics. “It is our honor to participate in the production of
these advanced electronic systems for the warfighter. We are
pleased to have this opportunity to expand and extend our
relationship 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:
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; our failure to successfully
complete final contract negotiations with regard to our announced
contract “orders”, “wins” or “awards”; our failure to successfully
win new business or develop new or improved products or new markets
for our products; volatility of our customers’ forecasts, 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; cost, quality and
availability or lead times of raw materials such as component parts
or utilities including increased cost relating to inflation; the
impact of the current coronavirus disease (“COVID-19”) and economic
conditions on our future operations; possible public policy
response to the pandemic, including U.S. or foreign government
legislation or restrictions that may impact our operations or
supply chain; 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; dependence on, retention or recruitment of key
employees and highly skilled personnel and distribution of our
human capital; the termination or non-renewal of existing contracts
by customers; inaccurate data about markets, customers or business
conditions; disputes or litigation involving governmental,
supplier, customer, employee, creditor, product liability or
warranty; 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;
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; the costs of compliance with our regulatory or
contractual obligations; health care or other benefit costs; our
inability to patent or otherwise protect our inventions or other
intellectual property from potential competitors; adverse impacts
of new technologies or other competitive pressures which increase
our costs or erode our margins; U.S. government spending on
products and services that Sypris Electronics provides, including
the timing of budgetary decisions; changes in licenses, security
clearances, or other legal rights to operate, manage our work force
or import and export as needed; war, geopolitical conflict,
terrorism, or political uncertainty, including disruptions
resulting from the conflict between Russia and Ukraine arising out
of international sanctions; 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; or unknown risks and uncertainties. We
undertake no obligation to update our forward-looking statements,
except as may be required by law.
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version on businesswire.com: https://www.businesswire.com/news/home/20220608005173/en/
Lawrence J. Bernicky Vice President of Finance
(813) 972-6040
Sypris Solutions (NASDAQ:SYPR)
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