Amendment to Add up to $22 Million to Base Multi-Year Contract
Upgrade to Precision-Guided Anti-Ship Missile System
Sypris Electronics, LLC, a subsidiary of Sypris Solutions, Inc. (Nasdaq/GM: SYPR), announced today that it has entered into an amendment to an existing multi-year supply agreement to include the production of electronic power logic assemblies for a large, mission-critical Navy program.
The amended contract, including options, now provides for the purchase of up to $77.0 million of assemblies from Sypris over the term of the agreement, representing a 39.5% increase in potential volume when compared to the original base contract announced earlier this year. In conjunction with the amendment, Sypris also received releases for the first year of production, with shipments scheduled to begin in 2023. Additional terms of the contract were not disclosed.
The modules to be produced by Sypris will be integrated into an electronic warfare improvement program for the U.S. Navy. According to news sources, the upgrade will provide the capability to actively jam incoming missiles that threaten a warship, cue decoys, and adapt quickly to evolving threats. The improvements to the electronic attack portion will provide integrated countermeasures against radio frequency-guided threats, according to the Navy.
The U.S. Naval Institute reported that the system’s capability for non-kinetic electronic attack options can be further deployed in additional critical areas. From advanced communications to multi-role waveforms, the multi-function applications of the system will provide enhanced mission capabilities to the U.S. Navy Fleet while presenting opportunities for future reductions in cost, size, weight, and power.
“We are pleased to expand our long-term partnership on and support of this important program,” said Mark R. Kane, Vice President & General Manager of Sypris Electronics. “Our engineering expertise, production capabilities and proven performance were essential to this win. We are certainly proud to increase our support for this strategic long-term upgrade program for the U.S. Navy that we believe to be critical to our National Defense.”
Sypris Electronics is a trusted provider of engineering and manufacturing services for complex, mission-critical electronic solutions for customers in the Defense, Space, Deep Sea Communications, and Industrial markets. Backed by over 50 years of experience, the Company specializes in producing electronics for high-cost-of-failure applications. For more information, please visit www.sypriselectronics.com.
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Lawrence J. Bernicky
Vice President of Finance