Sypris reports Q1 - revenue and earnings up

Sypris Solutions, Inc. (Nasdaq/NM: SYPR) reported revenue increased 5% to $130.0 million for the first quarter compared to $124.2 million for the prior year period. Net income for the quarter increased 45% to $0.9 million compared to $0.6 million for the first quarter of 2005, while earnings per share increased 47% to $0.05 per diluted share compared to $0.03 per diluted share for the prior year period. Earnings per share included the impact of adopting SFAS No. 123R, Share-Based Payment, which approximated $0.1 million in the first quarter of 2006.
 
"The results for the first quarter were consistent with our expectations," said Jeffrey T. Gill, president and chief executive officer. "Revenue continued to increase while margins expanded on both a sequential and year-over-year basis. The Company generated $3.3 million of free cash flow during the period despite the unexpected need to invest an additional $9.0 to $10.0 million in working capital to support a customer who filed for bankruptcy protection in March. We will continue to support this customer to meet its ongoing needs."