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, sir.

Thank you, and good morning, everyone. Rich Davis 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 2023. 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 any 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. Rich will then provide you with a more detailed review of our financial results for the period. Now let's begin with an overview on Slide 4. We are pleased to report that revenue for the quarter increased 23.4% year-over-year and 8.7% sequentially, reflecting continued strength across each of our business segments with revenue rising 42% for Sypris Electronics and 13.7% for Sypris Technologies on a year-over-year basis. Orders for the quarter were up 73.6% year-over-year, driven by a 91.4% increase in Sypris Electronics and a 25.7% increase for the energy products of Sypris Technologies.…

Thanks, Jeff. Good morning, everyone. I'd like to discuss with you some of our highlights of our first quarter financial results. Please advance to Slide 13. Q1 consolidated revenue was $32.3 million, an increase of 23.4% from the first quarter of last year and an increase of 8.7% sequentially as we continue to benefit from the abatement of the supply chain issues experienced in 2022, facilitating increased production, particularly at Sypris Electronics. Consolidated gross profit was $4.2 million for the quarter, a decrease of 7.7% from the prior year despite the growth in revenue over the prior year quarter. Gross margin was off 430 basis points compared to the prior year quarter due to an unfavorable shift in mix, production ramp-up costs, raw material price pass-throughs at 0 margin and unfavorable foreign exchange rates. Revenue for Sypris Technologies increased 13.7% year-over-year to $19.5 million for the quarter. Gross margin was down 480 basis points from the prior year due to raw material price increases passed through to the customer without markup and unfavorable foreign exchange rates. However, gross margin was up 60 basis points from Q4 on increased shipments. While our shipment volume went down in Q4 at Sypris Technologies as our commercial vehicle customers rebalanced their inventory levels at year-end, shipments subsequently returned to normal levels in Q1. Class 8 demand finished 2022 with a 19.6% increase over 2021 and is expected to increase 0.9% from that high level for 2023 with some decline in the second half. First quarter orders and backlog for energy products increased 26% and 61%, respectively, year-over-year, which we expect will translate into higher revenue from these products in 2023. On the cost side, we continue to experience some of the inflationary pressures that are being felt across the economy. Prices of consumable supplies…

Thank you, Rich. We would like to thank you for joining us on the call this morning. We are looking forward to another year of double-digit growth, expanding margins and increased profitability. And please note, we appreciate your continued interest in our business. Thank you, and have a good day.

The conference has now concluded. Thank you for your participation. You may now disconnect. End of Q&A: