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 President and Chief Executive Officer, Mr. Jeffrey Gill. Please go ahead.

Thank you, Ron, 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 third 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 clarifications in mind, we would 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 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 sale of our Cyber Security Solutions business to Analog Devices was clearly the highlight for the quarter. The sales price was attractive by almost any measure as was the timing of the transaction. For the fiscal year 2015, CSS reported $16.7 million of ales and lost money, while the prospects for 2016 were very similar. The [fit width] [ph] and synergy for…

Thanks Jeff. Good morning everyone. I’d like to begin by taking you through the highlights of our financial results for the third quarter 2016 and the transaction completed by the electronics segment during the quarter. Please advance to Slide 11. Q3 consolidated revenue totaled $21.4 million, down $17 million compared to the prior year. Both segments contributed to the decline in revenue for the third quarter with Sypris Technologies down $13 million and Sypris Electronics down $4 million compared to the prior year. The factors impacting revenue for Sypris Technologies during the quarter are consistent with our discussions during Q1 and Q2. Reduced demand from customers and the commercial vehicle market is the primary cause of the reduction for both three and nine month periods. Our shipments to oil and gas customers also lag behind the prior year. However, backlog has increased and we expect the revenue trend in this market to reverse beginning in the fourth quarter. And finally, a steel revaluation in 2016 lowered both revenue and cost of sales on shipments to certain customers, as compared to the prior year. The decline in year-over-year revenue for Sypris Electronics is primarily due to the divestiture of the CSS business, which accounted for revenue of $6.8 million in Q3 of 2015 versus only $1.8 million in Q3 of 2016. The comparison of revenue for our ongoing trusted manufacturing business increased $1 million in Q3 2016, compared to Q3 2015 and with the backlog of $30 million as of the end of the quarter we are well positioned to deliver top line growth in this business in 2017. Gross profit declined to a loss of $700,000 in the quarter, compared to the $2.5 million profit in the prior year period. Q3's gross profit for Sypris Technologies was within $100,000 of…

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

Hi morning.

Good morning Jim

Question, Tony, for you, if we back out the gain from CSS you still looking at a loss of, I guess, $0.56 or so, but I mean there are a lot of moving parts it sounds like, so I’m wondering if we can pull out some of the other potential transaction-related expense or inefficiencies that you might have experienced in the quarter just to get to what the loss might have looked like?

The one that I would call out certainly that is included in our G&A, we have about I would say about $700,000 of expenses within G&A that are identifiable or distinguishable from other existing operations that would call out. The balance of the inefficiencies that would have affected our cost of goods sold during the period are a little bit harder to quantify.

Okay. That’s helpful. Jeff you provided some color as to how you're thinking about Sypris Technologies mix of business looking out to 2017, so you're anticipating, I guess a shift in the energy business from a much lower percentage of revenues, are you anticipating - do you expect the industrial, the Sypris Technologies business to be up next year? I mean, it sounds like you’ve already given some thought to how the year looks as of now, what are your expectations for that business next year?

Well Jim I think that commercial vehicle will continue to be soft, though not as soft as 2016. And we believe that the light truck and off-highway and energy markets will be very positive, and the energy in particular. So when we have our conference call here in the near term to discuss the walk from 2016 to 2017 we will be in a position to go into that further, but the real benefit I think of the transition from 2016 to 2017 is going to be a mix and therefore margin that the energy business is quite frankly much more attractive from a pricing dynamic than is the commercial vehicle business. And so while the top line may not be the same from year-to-year, we anticipate the margin and the income performance to improve significantly.

Okay. That's helpful. The rebalancing, are we pretty much beyond, past that, do you see any pickup in the quarter just as some of the customers moved to a more normalized ordering?

Well, I mean Jim you know how our year-end always goes with customers. So, I would anticipate that we’ll see those same types of things at year end where our order boards are at a certain point and then we get into that final week of the quarter and we have trouble getting trucks, but we’ll see.

Okay. And again, you may be touching on this in this next call that you’ve got planned, but I'm just wondering, going forward, how we might think about OpEx?

I'm sorry, I didn't quite catch that.

I'm sorry. You may be touching on this in your next conference call as you talk about bridging the business looking out to 2017, but I'm just wondering if you can give us any help on how to think about operating expense, I think R&D is pretty clear where that’s going to be, but maybe just the G&A expense going forward, how we might think about that, that SG&A line with the divesture of the CSS business.

Clearly Jim the SG&A will be declining. And so yes, when we get together in our next conference call, the real objective is to be able to - as you kind of alluded to earlier to take the noise out of Q3 and provide you with a clear view of what the stabilized outlook should be and as part of that to bridge you to when we have that call, we would expect SG&A to be down.

Okay. Thanks a lot.

Yes, thank you.

[Operator Instructions] We’ll take our next question from Alan Weber from Robotti Advisors.

Good morning. First question was when you talked about the relocating of the facility, is that currently a leased facility or do you own that facility that you’re getting out of?

It will be a leased facility.

Okay.

Both are leased. The current and the new facility are both leased.

Okay. And then can you talk about in the energy side, what specifically are you doing and why the margins are higher? And is it a kind of a - do you think it’s like a recurring revenue kind of business or is it just kind of one-time business?

Alan for this side of our business, historically the margins have been much more attractive because of the unique nature, the proprietary nature of the products that we make, and they go into a variety of applications, but most typically into transmission and storage type applications, and so the reliability of the products is critical, they have to perform over an extended period of time. And we’ve been in this market in one way or another for roughly 60 years and so the brand is known as Tube Turns and it is a well-known brand throughout the industry and the world actually. And in many cases we’re actually specified in by brand name into new projects and so that’s just a very different animal from building [inaudible] if you will for the commercial vehicle market. In terms of what we’re experiencing, everyone is aware of the reduction in capital that’s gone into exploration activities and extraction activities and those types of things. But we found generally speaking that the transmission, the pipeline's things of this nature have held much better than the exploration. And in addition, we're finding that firms are starting to put more money into maintenance and repair of existing systems. And so we would hope that that would continue going forward.

Okay great. And just a follow on to the previous question, so for 2017 do you expect to be cash flow positive?

I think yes. The answer would be yes. And that again would be something that we would go through in greater detail during our next call.

Okay great. Thank you very much.

Thank you.

[Operator Instructions] And it appears we have no further questions at this time.

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

That will conclude today's conference. We appreciate your participation. You may now disconnect.