Welcome to the Sypris Solutions, Inc. Conference Call. Please note that 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, Amelia 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 2017. 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 would now like to proceed with the business discussion. Please advance to Slide 3. I will lead you to the first half of our presentation, starting with an overview of the highlights for the quarter, to be followed by an update on the status of our transition plan implementation and our new business awards. Tony will then provide you with a more detailed review of our financial results for the quarter as well as to walk you through the significant savings we expect to realize in 2017 and in 2018, when compared to the year just completed. Now let's begin with the overview on Slide 4. Revenue for the quarter came in at the lower end of our expectations, primarily as a result of moving a large planned shipment for the quarter into Q2 at the request of our customer. As a result, Q2…

Thanks, Jeff. Good morning, everyone. I'd like to discuss with you some of the highlights of our first quarter financial results and provide an update on the transition plan and related cost-reduction initiatives, we discussed on our call at the end of March. Please advance to Slide 14. Q1 consolidated revenue closed at $18.2 million, falling at the lower end of our expectations, as certain customer deliveries shifted out of the quarter. This is purely a timing issue rather than cluster demand or the receipt of an order. So as we look forward, our view for the first half of the year hasn't changed in our 2 segments. The revenue split between Sypris Technologies and Sypris Electronics was $12.8 million and $5.4 million, respectively. Sequentially, this reflects an increase in revenue for Sypris Electronics, as they were fully operational in their new facility during the first quarter, following the relocation activities prior to year-end. I know we discussed this during our Q4 call, but the remarkable effort put forth by our team in Tampa to execute the transfer of all production on an aggressive schedule prior to the end of the year and to maintain our high standards of quality and on-time delivery for our customer base deserves another mention. Thanks, again, to all of those involved at Sypris Electronics for a job well done. Revenue for Sypris Technologies declined sequentially, as we ramped up production on a couple of customer programs in the heavy truck market and continued our progress on the transition of operations from our Broadway Plant. Our performance to date on the transition activity has been favorable to plan with the credit for this belonging to the entire team at Broadway, but most notably to the hourly workforce that has been responsible for continuing to meet…

[Operator Instructions]. And we'll take our first question from Joel Cahill from Jameson Companies.

Really happy to say, nice to have a common thread from call-to-call and you guys have done a great job on the transition. So I applaud that. On revenue, we're talking a lot about incremental growth. And it sounds like, sales have been doing a great job in bringing in some new business. But we've just been talking about the incremental growth. Should we be looking at this $40 million for this year as a baseline or some kind of -- at least in some capacity for '18 and '19, so that we could be looking at what basically growth aggregate revenue trajectory for the next couple of years?

Yes, Joel. This is Tony. So the first half and second half are going to be somewhat consistent. We're looking at $38 million to $40 million and then ramping to $40 million to $42 million. With the new program awards and some of the opportunities that we're looking at for '18, we're hoping to build on that as we move forward. We believe we have the opportunities, the pipeline and some of the business already in backlog to support growth in 2018.

Okay. And you're forecasting profitability for the end of 2017 and I'm assuming -- can we assume that that's what you're also expecting for 2018? I mean, the idea that we really turned the corner here and off into better place and looking up instead of looking down kind of thing?

Yes, sir. We expect the trend that we were building on in -- in the second half of 2017 to continue into next year.

Excellent. One thing -- one pledge that I appreciate that you've made or not pledge but plan is for cash to at least be stable quarter-to quarter. And this year, obviously, the cash -- this quarter cash is a little bit higher, but a lot of that is from payables increasing. Is that largely just attributable to orders moving from -- or sales moving from Q1 to Q2?

Yes, if you look at the other side, Joe, you'll see that inventory was also up. So it's kind of a net working capital growth there that occurred in Q1. So that was -- it was more related to the inventory than purely a timing issue.

Okay. And in the report that you put out last week for the annual meeting which was great, really appreciate that. You discussed a lot on that GAAP. This project over in Kazakhstan, is this something that you expect -- I mean, you're talking about a lot of new pipeline capacity that's going to be brought online and a lot of new projects. Is there something that you're pursuing hard? Is there -- and how do we measure -- what kind of revenue comes out of it? Is that -- are you be able to look at it based on either capacity or length of the pipeline?

Joe, this is Jeff. Let's see if I can answer your question. So simply, the opportunities that we described during the stockholders' meeting and going through the various projects were really meant to illustrate the growing activity, particularly on the natural gas transmission side. And we're seeing strength in the price of natural gas. I think it's up fairly significantly over the past 6 months. And some analysts are forecasting that by the end of the year, maybe in the $4, $5 range. And so this is leading to a lot of capital expenditure to put these pipelines in place. Internally, we tend to look at these projects more as the length of the pipeline and therefore, the number of closures and insulated joints and other types of components that we saw that might be used. So -- and in Kazakhstan which is a joint effort between Chevron and Tengiz is a huge project. I think we identified it during the stockholder meeting as the total project is $37 billion and they are going full steam ahead. So that's been a very positive thing for us.

[Operator Instructions]. Gentlemen, it appears we have no more questions at this time.

Okay. Well, thank you, Amelia. Tony and I would like to thank you guys 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 concludes our conference for today. Thank you so much for your participation. You may now disconnect.