Good day and welcome to the Sypris Solutions, Inc., First Quarter 2016 Earnings Conference Call. Today's call is being recorded. At this time for opening remarks, I would like to turn the call over to the President and Chief Executive Officer, Mr. Jeffrey Gill. Please go ahead, sir.

Thank you, Angela, and good morning, everyone. Tony Allen and I would like to welcome you to this call, the purpose of which is to review the company's financial results for the first quarter of 2016. For those of you who have access to our PowerPoint presentation this morning, please advance to slide 2 now. We always begin these calls with a note that some of what we might discuss here today may include projections and other forward-looking statements. No assurance can be given that these projections and statements will be achieved, and actual results could differ materially from those projected as a result of several factors. These factors are included in the company's filings with the Securities and Exchange Commission. And in compliance with Regulation G, you can access our website at sypris.com to review the definitions of any non-GAAP financial measures that may be discussed during this call. With these qualifications in mind, we'd now like to proceed with the business discussion. Please advance to slide 3. I will lead you through the first half of our presentation this morning, starting with an overview of the highlights for the quarter to be followed by a brief discussion of each of our two business segments. Tony will then provide you with a more detailed review of our financial results for the quarter. Now let's begin with the overview on slide 4. The financial performance for the company during the first quarter of 2016 marked a material improvement when compared to the prior year’s results, even after taking into account the softness in demand from the commercial vehicle market. Revenue declined $5.2 million from the prior year period, excluding the results from our former Morganton production facility, while gross profit increased significantly as both operating units contributed to the comparable…

Thanks, Jeff. Good morning, everyone. I'd like to take you through the highlights of our financial results for the first quarter of 2016 and I will begin with our consolidated results and ask to you advance to slide 10. Q1 consolidated revenue totaled $26.9 million, down $10.1 million compared to the prior year. The decline in revenue for the first quarter period is attributable to Sypris Technologies as Sypris Electronics increased $200,000 over the prior year. The two primary factors for the revenue decrease at Sypris Technologies are the loss of revenue associated with the trailer manufacturing operation we sold in 2015 and reduced demand from customers in the commercial vehicle market. These factors will be discussed further on our next slide. Gross profit improved to $700,000 in the quarter from a loss of $3.2 million in the prior year period. Both segments contributed to the improvement in gross profit, with favorable revenue mix contributing to the improvement at Sypris Electronics and cost reductions throughout 2015 primarily driving the improvement at Sypris Technologies. EBITDA improved to negative $2.3 million in the quarter from negative $10.5 million in the prior year period. The increase in EBITDA of $8.2 million primarily reflects the improvement in gross profit, lower SG&A expense and the gain recognized on the sale leaseback transaction for our Mexico real estate during the quarter. Our SG&A cost was $2.6 million lower in Q1 as compared to the prior year, primarily reflecting reduced spend on professional fees associated with litigation on contract matters with Dana and lower employment cost attributable to headcount reductions. Partially offsetting these SG&A reductions was a $500,000 charge in Q1 of 2016 for our estimated ongoing and final repairs related to the facility occupied by Sypris Electronics. The lease for this facility expires at the end…

[Operator Instructions] We will take our first question from Jim Ricchiuti with Needham & Company.

Tony, just first off on SG&A, so the total charge in SG&A for the quarter?

Related to the Tampa lease was $0.5 million.

$0.5 million, okay. So going forward, how should we maybe think of that SG&A expense? Do you anticipate it dropping ex-that, would you anticipate being able to see lower SG&A this quarter?

Excluding the charge, certainly we will see – we anticipate seeing a drop related to that charge not recurring. But beyond that, I do think we have some opportunity to reduce our SG&A. We also had in the first quarter some professional fees related to our debt amendment and some of those activities that we aren’t anticipating to reoccur.

And on the [indiscernible] Sypris Electronics, good margins in the quarter. Would you anticipate that mix will be – there will be a mix shift in the June quarter that could provide a little bit – some pressure on the margin sequentially? Just sounds like you had a good mix of revenues in Q1 and that may not be sustainable in Q2.

We have an opportunity in Q2, it's not going to be the same mix. But if you look at our split in our EDMS business and with some of our severe customers, in the severe environment side of the manufacturing service business, we have some opportunity there. Certainly, the Cyber is a little lumpier and we won't see the same benefit in Q2 that we had in Q1 from the Cyber business. But we still have some opportunities there as well. So there will be some pressure on that, Jim, but we're trying to manage that as we go through – sequentially go through our quarters.

Jeff, are you more optimistic on the Cyber side as you look out over the balance of the year?

I think 2016 will be a very good year for us Cyber area, Jim. So, yes, we're optimistic.

And so from a booking standpoint, while there – this may not actually be able to maintain this level of bookings necessarily, you still feel pretty good or reasonably confident that you turn the corner on that side of the business?

Knock on wood, yes sir.

Looking at the commercial vehicle market, I mean it appears to have deteriorated further since the end of March, I’m not sure that's consistent with the ACT data or not, but as I think about the second half of the year, do you have the potential to show improvement just on the basis of maybe the Ultra program and some of these other parts programs that you discussed or is it just – is the market just going to be too much of a headwind?

At the moment, Jim, our outlook is that the PPAP process, as we move through that in these new parts and their production is that – our outlook is that we will be able to offset the headwinds associated with the commercial vehicle market. But we’re sitting here in May and who knows what could happen in August or September. But at the moment, our outlook is that we have the opportunity to offset that. So we would look at the year as being plus or minus relatively stable rather than having significant deterioration.

[Operator Instructions] I’m seeing that there are no other questions. I'd like to turn the conference back to Mr. Gill for any additional or closing remarks.

Thank you, Angela. Tony and I would like to thank you all for joining us on the call this morning. We welcome your continued interest and, of course, your questions about our business. Thank you and have a great day.

Ladies and gentlemen, this does conclude today's conference. We thank you for your participation.