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 call over to the President and Chief Executive Officer, Mr. Jeffrey Gill. Please go ahead, sir.

Thank you, Tracy, 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 2019. For those of you who have access to our PowerPoint presentation this morning, please advance to slide two 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 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 three. 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 forward-looking financial guidance. Let's begin now with the overview on slide four. Revenue for the third quarter of 2019 increased 5.5% to $22.3 million, reflecting the positive growth in each of our business segments. Sales for Sypris Technologies increased 5.4% on a year-over-year basis, primarily reflecting the growth of shipments of energy-related products when compared to the prior year period. Sales in our energy business in particular continued to expand…

Thanks, Jeff, and good morning, everyone. I’d like to discuss with you some of the highlights of our third quarter financial results. Please advance to slide nine. Q3 consolidated revenue was $22.3 million, an increase of 5.5% from the third quarter of last year. Consolidated gross margin was 10.5% for the third quarter, which is a 480 basis-point improvement from the prior year. Revenue for Sypris Technologies increased 5.4% to $15.7 million from $14.9 million a year ago and gross profit nearly doubled to $2.5 million from $1.3 million. We began to experience order board reductions for commercial vehicle products during the third quarter, the trend we expect to continue into Q4 and 2020. This accounted for a slight decline in year-over-year revenue in this market and a sequential decrease of about 10%. Offsetting the commercial vehicle market decline was increased revenue from our energy products and shipments on new programs for automotive, altering vehicles and refrigeration valve customers. Energy product shipments increased about 19% year-over-year, but were down slightly from Q2. Gross margin was 16.1% for Sypris Technologies in the third quarter, which compares to 8.9% in the prior year period. Year-over-year improvement in gross margin for technologies reflects operational improvements on our legacy programs, partially offset by costs incurred on the launch of new programs. We expect costs to bring equipment up to OEM specifications in order to minimize equipment downtime, as this equipment is repurposed for the new programs. Additionally, labor productivity is lower during the ramp-up phase, as we design and train our workforce on the manufacturing processes for the new programs. Revenue for Sypris Electronics increased 5.7% to $6.6 million in Q3, and gross profit was essentially flat with the prior year. This performance was well below our expectations for the quarter. And I would…

Thank you, sir. [Operator Instructions] We will now take our first question from Joel Cahill from The Jameson Companies. Please go ahead.

Good morning, guys. Hey. Thanks for the call. So, hasn’t been kind of a disappointing run for period here, kind of looking at just last quarter really looking at $95 million to $105 million in revenue for 2019. And now, we're calling for 2020 to be that same level and calling as if it's an out here. It seems like we just keep getting pushed back. How do I look at this as an investor, thinking -- not losing confidence in you guys and being able to forecast adequately and maintain whether it’s supply chain or otherwise?

That's a good question, Joel, and certainly a fair one. When we look forward, the opportunity to be in the $95 million to $105 million range for 2020, I think is positive in the sense that the headwinds that are taking place in the commercial vehicle market now, which I think consensus around about 25% drop. This is the first time really in our history where we've been able to have an outlook that anticipates growing through the down cycle. And the other element that I think is important in the outlook is the fact that we anticipate expanding our margins as we go forward despite the down cycle in the Class 8 market. When you look at our track record recently of being able to forecast accurately and to have confidence in our outlook, certainly the track record hasn’t been great, hasn’t been what we wanted. We have repeatedly thought that we had control of the material side in our electronics business and the ball just seems to shift. And in this last quarter Tony went through the two events which weren’t just the availability of components but one coating issue and the other a customer approval issue, which were of a different nature than the issues we’ve had earlier year. So we clearly have to prove ourselves. We believe that the business is well-positioned going forward. And it's our job to make sure that we bring results in within our guidance.

Thank you. And I appreciate that candor. Does it start to get concerning on some of the SE side as far as like, size in cloud to maintain that supply chain, really the smaller size and issue, you’ve got a lot of great specialty products and things that -- is that what we’re running into some of those headwinds?

No. I don’t think so. Our customers have been very supportive and have used their size and weight to help us get components. And that's why during our last call, we really felt we were out of the woods on the issue. And the issue of the coating and issue of customer approval on a supplier change caught everyone by surprise. And as we look forward into 2020, as Tony indicated, we believe that the backlog that we now have on the electronic side, assuming that the material issues or versions of it don’t rear their head again. We're looking at strong double-digit growth going into the coming year in that side of business. So, as we get larger, I think, it will be a benefit clearly. But, I also think the side benefit of growth will be that when we have small hiccups or something we can make them more opaque, if you will, in terms of their impact than when we're a smaller business.

[Operator instructions] There appear to be no further questions in the queue. [Operator Instructions] It appears there are no further questions at time. Mr. Gill, I’d like to turn the conference back to you for any additional or closing remarks.

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

This concludes today's call. Thank you for your participation, ladies and gentlemen. You may now disconnect.