Good day and welcome to the Sypris Solutions, Inc. 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, Brian, and good afternoon, 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 second quarter of 2016, as well as the transaction we announced this morning with Analog Devices. For those of you who have access to our PowerPoint presentation this afternoon, 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 Web site 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 afternoon, starting with an overview of the highlights for the quarter to be followed by a brief discussion of the transaction with Analog and the outlook for our business going forward. Tony will then provide you with a more detailed review of our financial results for the quarter and the impact of the CSS sale on our business. Now let’s begin with the overview on Slide 4. The financial performance for the company during the second quarter of 2016 marked a material improvement when compared to the prior year’s results, even after taking into account the recent softness in demand from the commercial vehicle market. Revenue…

Thanks Jeff, good afternoon everyone. I’d like to begin by taking you through the highlights of our financial results for the second quarter 2016 followed by more discussions on the recently completed transaction. Please advance to Slide 10, Q2 consolidated revenue totaled $23.5 million down $17.3 million compared to the prior year. The decline in revenue for the second quarter period is attributable to Sypris Technologies as Sypris Electronics was flat compared to the prior year. The two primary factors for the revenue decrease at Sypris Technologies both of which were discussed during our first quarter call are the loss of revenue associated with the former trailer manufacturing operation and reduced demand from customers in the commercial vehicle market. Before it was sold in July of 2015, the trailer operation contributed $7.5 million to revenue in Q2 of 2015. We expect demand in the commercial vehicle market remain challenging for the balance of 2016 and current industry forecast or point toward further tightening in 2017. We continue to pursue new business opportunities to offset the overall market weakness and we remain focused on our continues improvement programs to improve productivity and reduce costs. Another factor impacting revenue in the second quarter was the revaluation of steel resulting from lower market prices with certain of our major customers. This revaluation results in a dollar-for-dollar decrease in both our material costs for steel purchase on the cost side of the equation offset by a decrease in our selling price to the customer on the revenue side of the equation. Compared to Q2 2015, the revaluation reduced revenue by nearly $2 million, however, this does not directly impact gross profit. And finally, our product sales to the oil and gas market declined from the prior year, which is more reflective of the timing…

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

Congratulations on the transaction. I guess wanted to start if I may with the backlog that you -- number that you gave provided for Sypris Electronics, that was 26.8 million on a pro forma basis for the backlog for the go forward business?

That’s correct.

Okay. Is that a multi-year backlog, I am trying to get a sense how much of that backlog Jeff or Tony might be shippable over the next 12 months?

You know Jim the answer to your question is that there is part of the backlog that goes into the ’17 and breathes in to ’18. To break that out for you in what covers the next 12 months I think Tony would have to get back to you.

Yeah, the majority of it is within the 2017 calendar year and the substantial majority of it, but as Jeff just said there is a tail that we go into 2018.

Okay, and what I’m trying to guess here is you guys probably know, it’s just what the business might look like on a go forward basis, so we’re looking at revenues in the 25 million or so area. Don’t know if there is any help you can provide along those lines? And then what the gross margin profile might also look like because we had a couple of moving parts for the CSS business that do best because there is a higher margin piece that was profitable and then the investment piece on the Sypris side. So is there anything you can provide along those lines that might give us a little color on how to think about the business going forward.

Sure Jim. The revenue number you called out is in-line with what we would see for the business going -- at least initially launching out. We think -- we obviously feel strong about the business and the prospects for trusted manufacturing, so we think we can grow that, but I think initially that $25 million number is the right place to start. And as far as margin percentage is, I think for trusted manufacturing, initially we’re going to be in the mid to upper teens with the ability to improve on that as well as we move forward.

Okay, that’s helpful Tony thanks. You also provided some nice color just in terms of how we can think about some of the savings associated with the transaction and other steps that you’re taking. How to actually think about the investment piece of that because clearly now you’re in a position where you can invest in not only Sypris Electronics but also on Sypris Technology. Is there -- is that going to be meaningful do you think over the next year now that you have this flexibility with the balance sheet?

Well certainly Jim there are some investments that we will want to make in the near-term given that the liquidity this transaction provides is something more significant than what we’ve had to work with in the past couple of years in particular. So there are some things that are queued up that we’ll look at for the next 12 months. But I think the larger part of the answer your question would be, it’s going to be subject to the new program activity and the wins -- the rate of wins that we have on some of these programs that we’re pursuing.

Got it. Okay. Thanks. I’ll jump back in the queue. Thank you.

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

Yes. Just if we could maybe talk a little bit about what your sense is on the industrial side of the business sounds like given the outlook that you’re seeing from ACT another tough quarter maybe over the balance of the year in the Class 8 [ph] market. Are you hearing anything from your customers that give you reason to be at all a bit more optimistic as you look out in 2017 or is this still a pretty uncertain environment?

That’s a great question Jim. It is an uncertain environment and I think that overall, that the consensus is that it will remain soft and perhaps get a bit softer in the aggregate going into ’17. From a Sypris standpoint, we have a number of programs that are launching or have just launch that we expect to correct that softness as we look forward in the next year. And so we anticipate that we’ll actually see some incremental year-over-year growth as oppose to seen the business decline further in the coming year.

Okay. And Jeff is that scenario where you might see sequentially improving albeit maybe modestly, but sequentially improving revenues in that part of the business over the course of the year.

Yes.

Terrific. Thanks very much.

Yes. Thank you, Jim.

[Operator Instructions]. And there are no further questions in the queue at this time.

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

Ladies and gentlemen, that concludes today’s conference call. We thank you for your participation.