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

Thank you, Audra, 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 second quarter of 2019. 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 quarter to be followed by an update on the outlook for each of our primary markets. Tony will then provide you with a more detailed review of our financial results for the quarter as well as walk you through our financial guidance for 2019. Now, let's begin with the overview on Slide 4. We were pleased to report that revenue for the second quarter of 2019 increased 6.4% to $24.4 million and was up almost 25% sequentially due to the recovery of shipments during the period from Sypris Electronics which as many of you may recall have been impacted by a shortage of electronic components earlier this year. Sales…

Thank you, Jeff. Good morning, everyone. I would like to discuss with you some of the highlights of our second quarter financial results, so let’s please advance to Slide 9. Q2 consolidated revenue was $24.4 million, an increase of 6.4% from the second quarter of last year. Consolidated gross margin was 16.3% for the second quarter, which is 350 basis points better than the prior year, and up nearly 1200 basis points sequentially. Sypris Technologies reported another strong quarter in Q2. Revenue increased $1.6 million from the prior year to $16.9 million and gross profit increased to $1 million to $3 million in Q2. On a year-over-year basis, revenue for technologies was up 10.1% and the sequential increase was 4.6%. We continue to benefit from favorable market conditions and customer demand for our products in the commercial vehicle, automotive and energy markets. Shipments to the commercial vehicle market which accounted for approximately 39% of consolidated revenue in 2018 are expected to be stable through the balance of the year with some upside coming from the launch of new programs. Energy product shipments, which accounted for approximately 25% of consolidated revenue in 2018, are expected to increase over the balance of this year with a couple of large orders targeted to ship in Q4. Energy product shipments increased about 15% year-over-year in Q2 and was up slightly from Q1. Gross margin climbed to 17.6% for Sypris Technologies in the second quarter, which compares to 12.6% for the prior-year period and 14.3% in Q1. The steady improvement in gross margin for technologies over the past two years reflects the completion of our cost reduction efforts as well as our operational improvements. Our labor productivity is improving and we are concurrently reducing cycle times on some of our key assets which is allowing…

[Operator Instructions] We'll go first to Joel Cahill at The Jameson Companies.

Can we just jump back just real quickly, so you pulled down revenue guidance with 5 million on both sides you know midpoint the same. Gross margins maintained, SG&A though is bumped up two points from previous outlook. You mentioned ERP and some higher sales commissions. Is there anything else to kind of guide where that’s going to go because we’re most of the way through 2019, we're really not talking about 2020 at all other than some strong bookings. Can you give any thoughts on where that looks for going forward because as we’re kind of talking about turning the page into this new chapter?

Sure, I mean if the question was specifically around the SG&A expense and where that’s going to go what we referenced in the call was if we think our second half is going to drop back down into the 11% to 13% range which is a pretty significant drop from the first half. And so that's revenue growth that’s one of the factors, but also the absolute dollar spend is going to come down as we move into the second half as well.

And do you have any numbers to put around expectations for 2020, I know you’ve kind of avoided that aside from kind of talking about some percentage increases in orders and things, but how does that look to you?

Yes, we’re not putting anything out yet Joel for 2020 we - as referenced in the call our backlog is strong, orders momentum is going very well at this point. So the foundation is there, we do see some softening on the production side on the commercial vehicle market, but with the launch of some of the programs that we have and the diversification that we have in other - with customers in other markets today, we don't see that being a significant drag to 2020.

On that I mean Class A orders have dropped off pretty materially with current - you know as you're saying like everybody's - the backlog for the OEMs is through this year up to 2020. Where did that drop off I mean, as far as in the lifecycle has Sypris already delivered most of that for those kinds of orders, delivered axles already or do you still expect to see some - from that existing backlog where does it start - I guess where I am heading is, where do we start feeling that drop off with ST?

Sure Joel that’s a great question. We see our order boards for the balance of this year as it relates to the commercial vehicle market as being solid and steady. We don't see any material change in the order boards for 2019. What the industry is expecting is that in 2020 there will be a cycle down in terms of orders from what is taken place in 2018 and 2019. And the current view is somewhere in the 20% to 22% range I believe.

[Operator Instructions] And at this time we have no further questions. I’ll turn the conference back over to management for any closing remarks.

Thank you, Audra. 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.

And that does conclude today's conference again. Thank you for participation.