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

Thank you, Doug 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 fourth quarter and full year 2014. 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 year 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 and year. Now let's begin with the overview on Slide 4. The financial results for 2014 reflected the continued strong operational performance of Sypris Technologies offset by challenges faced by Sypris Electronics during the year. Revenue, gross profit and operating income were each increased by double-digits when compared to the prior year period, while earnings improved to a loss of $0.06 per share from a loss of $0.51 per share for the prior year. The…

Thanks Jeff and good morning, everyone. I would like to discuss with you some of the highlights of our fourth quarter and full year 2014 financial results. I'll start with our consolidated fourth quarter results and ask you to advance to Slide 13. Q4 consolidated revenues totaled $87.2 million up $13.4 million or 18.1% from the prior year driven by a 25% increase for Sypris Technologies. We generated $9.2 million of gross profit up $2.9 million from the prior year quarter, primarily reflecting the increase in revenue for Sypris Technologies. Gross margin for Q4 came in at 10.6%, an increase of 200 basis points over 8.6% for the prior year, led by Sypris Technologies reporting gross margin of 12.7% in the current period. EPS came in at negative $0.11 per share versus breakeven in Q4 2013. The prior year included a $2.4 million non-cash tax benefit that did not repeat this year. Let me now shift to our consolidated 2014 full year financial results and ask you to please advance to Slide 14. 2014 full year consolidated revenues totaled $354.8 million, an increase of $44 million or 14.2% from 2013 driven by Sypris Technologies, which increased 16.7% from the prior year. Gross profit increased $8.8 million to $38.8 million, primarily from the increase in volume for Sypris Technologies. Full year gross margin came in at 10.9% up from 9.7% as Sypris Technologies improved its gross margin by a 150 basis points over 2013. Earnings per share for the year came in at a loss of $0.06 per share, compared to a loss of $0.51 per share in 2013. The loss in 2013 included a $6.9 million non-cash impairment of goodwill that was partially offset by the $2.4 million non-cash income tax benefit previously discussed for Q4. Let me now shift…

[Operator Instructions] And we’ll now take our first question from Jim Ricchiuti with Needham & Company.

Hi good morning.

Good morning, Jim.

Good morning, Jim.

I wonder if we could start with such technologies and maybe talk about how we might think about the potential for you to replace some of the Dana revenues. First of all, can you say what Dana represented in Q4 and when the shipments stopped? Was it early in December?

It was at the end of December Jim actually December 30 and the revenue, the aggregate revenue from Dana in Q4 is just over $50 million.

Okay. And so if we think about the second half of 2015 just given what you're working on in terms of new programs is there any way for you to provide some range of revenues that you might see as replacing some of this Dana business in the second half?

Yeah it is going to be more of a second half replacement as compared to the first half. We do -- obviously the contract with Meritor that was announced at the end of the year gives us some opportunity in the first half. But it’s not as material and so as we look to the second half of the year, we’ve modeled a number of different scenarios obviously. And we have some very real opportunities in front of us. I think what a reasonable range Jim would be to look at something in the back half of the year where we’re in the -- where we’re replacing let’s call it 15% to 30% of the Dana volume on a quarterly basis as we move through the back part of the year.

Okay. And does that assume completion of this acquisition that you are…

No that was -- anything external would be incremental to those numbers.

Okay, great and…

Yeah if you want to size the acquisition Jim it’s -- you’re looking at a $40 million run rate on an annual basis.

Right, okay and that’s and I believe that you alluded to that in the last call is there much -- can you talk a little bit about the customer overlap with this acquisition or the end market overlap? And again it would be early you haven’t completed it I don’t know what the timeline is as to when you think you could if you control it for that?

Sure Jim this is Jeff. The customer concentration is very similar to the customers we currently have in the commercial vehicle industry and as part of our due diligence we’ve been meeting with the major customers on that side. And they’re very excited about the prospect of our completing this transaction. From a timeline standpoint, if the remaining elements of due diligence go well we would anticipate bringing this to a close in Q2.

Okay, and just to switch gears for a second looking at the Electronics business I may have miss heard, I wasn’t sure if you’re anticipating, to what extent you might be anticipating growth in this business? It sounds like you see scenarios that are going to up in 2015 versus 2014. At this point can you think the business is going to be up?

Yeah certainly as we grew sequentially from Q4 to Q1and with the program that Jeff and I mentioned on the EDMS side, it's one that you probably recall hearing us just talk about, throughout 2014, where we had the delays and we finally launched that in Q1. So it will contribute in Q1 and Q2 certainly. And we expect that to provide some sequential lift as we exit Q4 and then in Q2 with the commissioning of the Cyber Range has incremental revenue and the other opportunities that we're pursuing, we expect to see sequential improvement there as well.

Okay and is it possible for you to size the Cyber business right now and the potential for that business in 2015?

Well, let’s see Jim, there would be two pieces to it.

Right, you just named government piece right?

Well, yeah and more particularly the Cyber Range for example and the Cyber Range is what we're installing as part of the Cyber Lab in Singapore and so our current funnel and additional ranges to a variety of agencies and countries is in the $25 million to $30 million. And depending upon the specification and the kind of how the range is put together you can figure on a price that runs as low as 750,000 for a particular application that's very basic and simple to in excess of $3 million for an installation that’s much more complex. On the SIOMETRICS side, we don’t have a -- I think a good way to size that at this point because it's truly -- it's called a technology that we’ve now demonstrated and we’ve taken it to different locations such as MIT, Purdue as I mentioned in the prepared part of our speech, we've been at and visited with Kleiner Perkins and Khosla and others and it’s a technology that has the opportunity to be very disputative. What we’re trying to figure out is what is the best way to get it to market because we don’t have in our organization either the knowledge or the channels of distribution into many of the end markets that everyone sees as being highly applicable for this technology. So I guess that’s a long winded way of saying without when -- we don’t have the ability to size for you in terms of let's call it revenue, but we see the opportunity intrinsically as being substantial.

Jeff, do you see a point this year where you're going to have more to say about how you're going to proceed in terms of commercializing this technology? It sound like you’re investigating a number of different options and avenues.

Jim, I would certainly say by the time we get to the middle of this year we would hope to have a plan and a process in place to bring it to market in part because everyone we’ve talked to agrees it's disruptive and so it's time to market. And in order for us to be able to become the thought leader if you will in this area, we need to get it to market and get it established with some broad users. So yes, the answer to your question by the middle of the year.

Got it, and one final question Tony, any way of sizing the charges that we would expect you -- expect in Q1, Q2?

No, it's difficult -- certainly the Q2 number more difficult than Q1 at this point, but we're still rolling those numbers up as we exit Q1.

Okay. Thank you.

Thank you, Jim.

And we’ll take our next question from Alan Weber with Robotti & Company.

Oh! Good morning.

Good morning, Alan.

Good morning. Can you talk about in this quarter and the year SG&A was quite a bit higher and why that was in the fourth quarter?

Yes, theSG&A Alan includes our fees, professional fees, legal and otherwise associated with our Dana matters. So that is the single largest factor in the variant.

Okay and for the first quarter since it’s basically completed, what do you think the cash charges will be related to the whole Dana contract like that?

Yes and that’s kind of follows Jim’s question just Jim’s previous question regarding the Q1 charges and we -- as I said to Jim, we're in the process of rolling those numbers up. There is a component of that, that you would consider non-recurring as well as a component of that cost that reflects the activities that we’re doing to preserve our skilled workforce that won’t be classified as non-recurring. So there are two elements to that at the end of the day and we’re kind of in the process Alan of analyzing those numbers and not in a position to disclose that today.

Okay. And does the -- getting out of Dana the contract, does it open you up to some of their competitors?

Alan this is Jeff. Yes. It certainly has.

Okay. I think the first I think you covered most of my other questions. Thank you very much.

Okay. Thank you, Alan.

[Operator Instructions] And we'll now go to Justyn Putnam with Talanta Investment Group.

Good morning. Thank you for taking my questions.

Good morning, Justyn.

Good morning, Justyn.

I just want to follow-up on a couple of other questions you already that have already asked this morning, particularly with R&D loss of the Dana business, I guess just trying to figure out how this is layering in? Is the existing business that you have now doing the Dana business is that going to be profitable going forward even including additional overhead that just absorbed?

As we exit Q4, certainly going to have an impact because of the fixed cost structure that we have Justyn. So as we in our presentation as we talked about the sequential improvement that we see from bringing on new contracts and the timing of those layering in during 2015, we expect that business to be profitable in the second half of the year. But it’s going to take us the time to rebuild and replace the volume as we move forward.

Okay. I was just kind of with the business before you layered on a new business, so excluding one-time cost unless you're going to have during this transition, the existing business it’s just not enough with some of the overhead that you have, you really are depending on this one to pick up this new business in the second half, is that correct?

That’s correct and it also reflects what we are doing Justyn to really build for the future because our strategy was as we discussed is to retain the workforce, to retain the talent, to rebuild and our guys have done a remarkable job at the locations to spend that have been impacted by the Dana volume. They’ve done a remarkable job to put themselves in the best possible position to be successful. Their plans for showpiece, the equipment is in its good a shape as it’s ever been, it's received the extra TLC that you might expect during a period like this and so we really are in a position to grow out of this and we think that as we ramp through the first half of the year, we’ll see the results.

Okay. Thank you. And then just changing gears real quick on the electronics business, certainly have a lot going on in that business, a lot of things there, but I think we talked in the last couple of calls about interest paying in that business and existing, is that still contract?

Yes it is. Yes it is.

Okay. That all of my questions. Thank you.

Thank you, Justyn.

It appears we have no further questions at this time.

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

This concludes today's conference. Thank you for your participation.