Sypris Solutions (SYPR) 10-Q 17 Aug 16 2016 Q2 Quarterly report Financial data

Document And Entity Information

Document And Entity Information - shares	6 Months Ended
	Jul. 03, 2016	Aug. 05, 2016
Document Information [Line Items]
Entity Registrant Name	SYPRIS SOLUTIONS INC
Entity Central Index Key	864,240
Trading Symbol	sypr
Current Fiscal Year End Date	--12-31
Entity Filer Category	Smaller Reporting Company
Entity Current Reporting Status	Yes
Entity Voluntary Filers	No
Entity Well-known Seasoned Issuer	No
Entity Common Stock, Shares Outstanding (in shares)		21,307,044
Document Type	10-Q
Document Period End Date	Jul. 3, 2016
Document Fiscal Year Focus	2,016
Document Fiscal Period Focus	Q2
Amendment Flag	false

Consolidated Statements of Oper

Consolidated Statements of Operations (Unaudited) - USD ($) shares in Thousands	3 Months Ended		6 Months Ended
	Jul. 03, 2016	Jul. 05, 2015	Jul. 03, 2016	Jul. 05, 2015
Net revenue:
Outsourced services	$ 17,587,000	$ 32,942,000	$ 37,344,000	$ 64,814,000
Products	5,917,000	7,814,000	13,098,000	12,951,000
Total net revenue	23,504,000	40,756,000	50,442,000	77,765,000
Cost of sales:
Outsourced services	18,193,000	35,326,000	39,170,000	71,112,000
Products	4,589,000	5,464,000	9,823,000	9,844,000
Total cost of sales	22,782,000	40,790,000	48,993,000	80,956,000
Gross profit (loss)	722,000	(34,000)	1,449,000	(3,191,000)
Selling, general and administrative	5,241,000	7,327,000	11,744,000	16,445,000
Research and development	90,000	195,000	214,000	528,000
Severance	38,000	281,000	522,000	566,000
Operating loss	(4,647,000)	(7,837,000)	(11,031,000)	(20,730,000)
Interest expense, net	964,000	1,154,000	1,840,000	1,488,000
Other (income), net	(409,000)	(575,000)	(2,571,000)	(754,000)
Loss before taxes	(5,202,000)	(8,416,000)	(10,300,000)	(21,464,000)
Income tax expense (benefit)	1,000	0	2,000	(15,000)
Net loss	$ (5,203,000)	$ (8,416,000)	$ (10,302,000)	$ (21,449,000)
Loss per share:
Basic (in dollars per share)	$ (0.26)	$ (0.43)	$ (0.52)	$ (1.09)
Diluted (in dollars per share)	$ (0.26)	$ (0.43)	$ (0.52)	$ (1.09)
Weighted average shares outstanding:
Basic (in shares)	19,749	19,701	19,725	19,675
Diluted (in shares)	19,749	19,701	19,725	19,675
Dividends declared per common share (in dollars per share)	$ 0	$ 0	$ 0	$ 0

Consolidated Statements of Comp

Consolidated Statements of Comprehensive Loss (Unaudited) - USD ($)	3 Months Ended		6 Months Ended
	Jul. 03, 2016	Jul. 05, 2015	Jul. 03, 2016	Jul. 05, 2015
Net loss	$ (5,203,000)	$ (8,416,000)	$ (10,302,000)	$ (21,449,000)
Other comprehensive loss
Foreign currency translation adjustments	(669,000)	(395,000)	(699,000)	(1,053,000)
Comprehensive loss	$ (5,872,000)	$ (8,811,000)	$ (11,001,000)	$ (22,502,000)

Consolidated Balance Sheets (Un

Consolidated Balance Sheets (Unaudited) - USD ($)	Jul. 03, 2016	Dec. 31, 2015
Series A Preferred Stock [Member]
Stockholders’ equity:
Preferred stock	$ 0	$ 0
Nonvoting Common Stock [Member]
Stockholders’ equity:
Common stock	0	0
Cash and cash equivalents	1,819,000	1,349,000
Restricted cash – current	6,000,000	0
Accounts receivable, net	12,277,000	12,394,000
Inventory, net	20,622,000	20,192,000
Other current assets	3,624,000	4,459,000
Disposal Group, Including Discontinued Operation, Assets, Current	0	3,230,000
Total current assets	44,342,000	41,624,000
Property, plant and equipment, net	22,330,000	22,178,000
Other assets	3,142,000	3,090,000
Total assets	69,814,000	66,892,000
Accounts payable	10,949,000	11,311,000
Accrued liabilities	14,504,000	11,661,000
Revolving credit facility	4,853,000	2,132,000
Current portion of long-term debt and capital lease obligations	1,912,000	1,714,000
Total current liabilities	32,218,000	26,818,000
Long-term debt and capital lease obligations	10,862,000	8,780,000
Note payable – related party	6,500,000	5,500,000
Other liabilities	10,820,000	6,082,000
Total liabilities	60,400,000	47,180,000
Preferred stock	0	0
Common stock	213,000	208,000
Additional paid-in capital	152,775,000	152,077,000
Retained deficit	(117,114,000)	(106,812,000)
Accumulated other comprehensive loss	(26,459,000)	(25,760,000)
Treasury stock, 52,692 and 49,692 shares in 2016 and 2015, respectively	(1,000)	(1,000)
Total stockholders’ equity	9,414,000	19,712,000
Total liabilities and stockholders’ equity	$ 69,814,000	$ 66,892,000

Consolidated Balance Sheets (U5

Consolidated Balance Sheets (Unaudited) (Parentheticals) - $ / shares	Jul. 03, 2016	Dec. 31, 2015
Series A Preferred Stock [Member]
Preferred stock, par value (in dollars per share)	$ 0.01	$ 0.01
Preferred stock, shares authorized (in shares)	24,850	24,850
Preferred stock, shares issued (in shares)	0	0
Nonvoting Common Stock [Member]
Common stock, par value (in dollars per share)	$ 0.01	$ 0.01
Common stock, shares authorized (in shares)	10,000,000	10,000,000
Common stock, shares issued (in shares)	0	0
Preferred stock, par value (in dollars per share)	$ 0.01	$ 0.01
Preferred stock, shares authorized (in shares)	975,150	975,150
Preferred stock, shares issued (in shares)	0	0
Common stock, par value (in dollars per share)	$ 0.01	$ 0.01
Common stock, shares authorized (in shares)	30,000,000	30,000,000
Common stock, shares issued (in shares)	21,359,736	20,826,236
Common stock, shares outstanding (in shares)	21,307,044	20,776,544
Treasury stock (in shares)	52,692	49,692

Consolidated Cash Flow Statemen

Consolidated Cash Flow Statements (Unaudited) - USD ($)	6 Months Ended
	Jul. 03, 2016	Jul. 05, 2015
Cash flows from operating activities:
Net loss	$ (10,302,000)	$ (21,449,000)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation and amortization	3,678,000	4,950,000
Stock-based compensation expense	703,000	501,000
Deferred revenue recognized	0	(4,200,000)
Deferred loan costs recognized	435,000	630,000
Gain on the sale of assets	(2,391,000)	0
Provision for excess and obsolete inventory	86,000	1,125,000
Other noncash items	(505,000)	(1,587,000)
Contributions to pension plans	0	(281,000)
Changes in operating assets and liabilities:
Accounts receivable	151,000	25,317,000
Inventory	(494,000)	1,400,000
Other current assets	(215,000)	(3,006,000)
Accounts payable	(369,000)	(14,026,000)
Accrued and other liabilities	2,237,000	(355,000)
Net cash used in operating activities	(6,986,000)	(10,981,000)
Cash flows from investing activities:
Capital expenditures, net	(115,000)	(883,000)
Proceeds from sale of assets	11,086,000	0
Change in restricted cash	(6,000,000)	0
Net cash provided by (used in) investing activities	4,971,000	(883,000)
Cash flows from financing activities:
Principal payments on Term Loan	(857,000)	0
Proceeds from note payable - Meritor	0	3,047,000
Proceeds from related party note payable	1,000,000	5,500,000
Net change in debt under revolving credit agreements	2,721,000	(251,000)
Debt issuance and modification costs	(379,000)	(1,369,000)
Indirect repurchase of shares of minimum statutory tax withholdings	0	(77,000)
Cash dividends paid	0	(410,000)
Net cash provided by financing activities	2,485,000	6,440,000
Net increase (decrease) in cash and cash equivalents	470,000	(5,424,000)
Cash and cash equivalents at beginning of period	1,349,000	7,003,000
Cash and cash equivalents at end of period	$ 1,819,000	$ 1,579,000

Note 1 - Nature of Business

Note 1 - Nature of Business	6 Months Ended
	Jul. 03, 2016
Notes to Financial Statements
Nature of Operations [Text Block]	(1) Nature of Business All references to “Sypris,” the “Company,” “we” or “our” include Sypris Solutions, Inc. and its wholly-owned subsidiaries. Sypris is a diversified provider of outsourced services and specialty products. The Company performs a wide range of manufacturing, engineering, design, and other technical services, often under multi-year, sole-source contracts with corporations and government agencies in the markets for truck components and assemblies and aerospace and defense electronics. The Company provides such services through its two segments, Sypris Technologies, Inc. (Sypris Technologies) and Sypris Electronics, LLC (Sypris Electronics). See Note 11, “Segment Data,” to the consolidated financial statements.

Note 2 - Basis of Presentation

Note 2 - Basis of Presentation	6 Months Ended
	Jul. 03, 2016
Notes to Financial Statements
Organization, Consolidation and Presentation of Financial Statements Disclosure and Significant Accounting Policies [Text Block]	(2) Basis of Presentation The accompanying unaudited consolidated financial statements include the accounts of Sypris Solutions, Inc. and its wholly-owned subsidiaries, and have been prepared by the Company in accordance with the rules and regulations of the Securities and Exchange Commission. The Company’s operations are domiciled in the United States (U.S.), Mexico and the United Kingdom (U.K.) and serve a wide variety of domestic and international customers. All intercompany transactions and accounts have been eliminated. These unaudited consolidated financial statements reflect, in the opinion of management, all material adjustments (which include only normal recurring adjustments) necessary to fairly state the results of operations, financial position and cash flows for the periods presented, and the disclosures herein are adequate to make the information presented not misleading. Preparing financial statements requires management to make estimates and assumptions that affect the reported amounts of assets, liabilities, revenue and expenses. Actual results for the three and six months ended July 3, 2016 are not necessarily indicative of the results that may be expected for the year ending December 31, 2016. These unaudited consolidated financial statements should be read in conjunction with the consolidated financial statements, and notes thereto, for the year ended December 31, 2015 as presented in the Company’s Annual Report on Form 10-K.

Note 3 - Recent Accounting Pron

Note 3 - Recent Accounting Pronouncements	6 Months Ended
	Jul. 03, 2016
Notes to Financial Statements
New Accounting Pronouncements and Changes in Accounting Principles [Text Block]	(3) Recent Accounting Pronouncements In May 2014, the FASB issued Accounting Standards Update (“ASU”) No. 2014-09, Revenue from Contracts with Customers. This ASU supersedes the revenue recognition requirements in “Accounting Standard Codification 605 - Revenue Recognition” and most industry-specific guidance. The standard requires that entities recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which a company expects to be entitled in exchange for those goods or services. The new guidance will also require new disclosures about the nature, amount, timing and uncertainty of revenue and cash flows arising from contracts with customers. ASU 2014-09 was originally effective for us on January 1, 2017; however, in July 2015 the FASB decided to defer the effective date by one year. Early application is not permitted, but reporting entities may choose to adopt the standard as of the original effective date. The standard permits the use of either the retrospective or cumulative effect transition method. The Company is currently assessing the impact of the adoption of ASU 2014-09 on its results of operations, financial position and cash flows. The Company does not intend to early adopt this standard. In August 2014, the FASB issued ASU No. 2014-15, Presentation of Financial Statements-Going Concern. The new guidance requires management to assess if there is substantial doubt about an entity’s ability to continue as a going concern for each annual and interim period. If conditions or events give rise to substantial doubt, disclosures are required. ASU 2014-15 is effective for the annual period ending after December 15, 2016, and for annual and interim periods thereafter; early application is permitted. The Company does not intend to early adopt this standard. The Company is currently assessing the impact of adopting this ASU on its consolidated financial statements and related disclosures. In April 2015, the FASB issued ASU No. 2015-03, Interest - Imputation of Interest (Subtopic 835-30): Simplifying the Presentation of Debt Issuance Costs. The amendments in this ASU 2015-03 require that debt issuance costs related to a recognized debt liability be presented in the balance sheet as a direct deduction from the carrying amount of that debt liability, consistent with debt discounts. The recognition and measurement guidance for debt issuance costs are not affected by the amendments in this ASU 2015-03. In August 2015 the FASB issued ASU No. 2015-15, Interest - Imputation of Interest (Subtopic 835-30): Presentation and Subsequent Measurement of Debt Issuance Costs Associated with Line-of-Credit Arrangements - Amendments to SEC Paragraphs Pursuant to Staff Announcement at June 18, 2015 EITF Meeting. ASU 2015-15 was issued to address presentation or subsequent measurement of debt issuance costs related to line-of-credit arrangements that were not found in ASU 2015-03. Given the absence of authoritative guidance within ASU 2015-03 for debt issuance costs related to line-of-credit arrangements, the ASU provides that the SEC staff would not object to an entity deferring and presenting debt issuance costs as an asset and subsequently amortizing the deferred debt issuance costs ratably over the term of the line-of-credit arrangement, regardless of whether there are any outstanding borrowings on the line-of-credit arrangement. These standards are effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2015, and should be applied retrospectively. Early adoption is permitted. The Company adopted this guidance January 1, 2016. As a result of adoption, debt issuance costs of $1,220,000 were reclassified from assets to reduce long-term-debt as of December 31, 2015 . In July 2015, the FASB issued ASU No. 2015-11, which simplifies the subsequent measurement of inventory. It replaces the current lower of cost or market test with a lower of cost or net realizable value test. The standard is effective for public entities for annual reporting periods beginning after December 15, 2016, and interim periods therein. Early adoption is permitted. The new guidance must be applied prospectively. The adoption of this standard is not expected to have a material impact on the Company’s consolidated financial statements. In February 2016, the FASB issued ASU No. 2016-02, Leases (Topic 842). The new standard was issued to increase transparency and comparability among organizations by recognizing lease assets and lease liabilities on the balance sheet and disclosing key information about leasing arrangements. This standard affects any entity that enters into a lease, with some specified scope exemptions. The guidance in this update supersedes FASB ASC 840, Leases. The amendments in this ASU are effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. The Company is currently assessing the impact of adopting this ASU on its consolidated financial statements and related disclosures. In March 2016, the FASB issued ASU No. 2016-09, Improvements to Employee Share-Based Payment Accounting (ASU 2016-09) requiring an entity to record all excess tax benefits and tax deficiencies as an income tax benefit or expense in the income statement. ASU 2016-09 will also require an entity to elect an accounting policy to either estimate the number of forfeitures or account for forfeitures when they occur. ASU 2016-09 becomes effective for the Company during the first quarter 2017. The Company is currently evaluating the effect that the updated standard will have on its consolidated financial statements and related disclosures. In March 2016, the FASB issued ASU 2016-08, Revenue from Contracts with Customers (Topic 606): Principal versus Agent Considerations, which further clarifies the implementation guidance on principal versus agent considerations, and in April 2016, the FASB issued ASU 2016-10, Revenue from contracts with customers (Topic 606): Identifying performance obligations and licensing, an update on identifying performance obligations and accounting for licenses of intellectual property. Additionally, in May 2016, the FASB issued ASU 2016-12, Revenue from contracts with customers (Topic 606): Narrow-scope improvements and practical expedients, which includes amendments for enhanced clarification of the guidance. This guidance is effective for fiscal years beginning on or after December 15, 2017 including interim periods within those fiscal years and early adoption is permitted. We are evaluating the impact that adoption of this guidance will have on our consolidated financial statements.

Note 4 - Management's Plans

Note 4 - Management's Plans	6 Months Ended
	Jul. 03, 2016
Notes to Financial Statements
Concentration Risk Disclosure [Text Block]	(4) Management’s Plans Given the Company’s loss of market share in commercial vehicle manufacturing in early 2015 due to the nonrenewal of a supply agreement with Dana Holding Corporation (“Dana”), and the recent unfavorable growth trends and softness in commercial vehicle manufacturing and the oil and gas markets served by the Company, management has developed various profit recovery and protection plans and is evaluating strategic alternatives to optimize asset values in each of the Company’s segments. Management engaged advisors during various periods to provide recommendations for cost reductions and other actions that can be taken to minimize losses and ultimately return to profitability. Management prepared a revised forecast during early 2016 with plans to further reduce costs, optimize cash flow and remain in compliance with its debt covenant requirements throughout 2016. The Company completed a number of its profit recovery and protection actions during 2015 and the first half of 2016, including: (i) the Toluca Sale-Leaseback (defined below), (ii) the sale of certain assets used in the Company’s manufacturing facility in Morganton, North Carolina within the Sypris Technologies segment, (iii) reductions in workforce at all locations, and (iv) other reductions in employment costs through reduced work schedules, senior management pay reductions, deferral of merit increases and certain benefit payments. The Company restructured its debt and has received the benefit of cash infusions from Gill Family Capital Management, Inc. (“GFCM’) in the form of subordinated promissory note obligations totaling $6,500,000 in principal through the first half of 2016. Demand in the commercial vehicle industry has softened beginning in the fourth quarter of 2015 along with other durable and non-durable goods sectors in the North America economy. In response to the reduced demand, management implemented reductions in selling, general and administrative expense and labor expense during the first half of 2016. Although the expected benefits of the cost reductions were partially offset by the impact of minor investments and severance required to enable the cost reductions, the actions are expected to contribute to improved liquidity during 2016. Additional cost reductions may be implemented during the second half of 2016 if the market softens further. Management has identified a number of new customer opportunities that are expected to provide higher gross margin opportunities, even at lower volumes. Management is implementing operational efficiencies that are expected to enable reductions in the machinery set-up time for new commercial vehicle orders which should enable the Company to quote on customer requirements that are higher margin but with somewhat shorter run lengths. These new business activities are anticipated to enable the Company to diversify its revenue sources over a larger and more profitable customer base. One of the additional actions implemented by management during the first quarter of 2016 was to consummate the sale and partial lease back of its facility located in Toluca Mexico, which generated gross proceeds of approximately $12,182,000. Of these proceeds, $6,000,000 was deposited into a cash collateral account, to be held for up to one year as additional collateral for the Term Loan (see Note 10 “Debt”). Management will continue to operate in Toluca, but given the reduction in Sypris Technologies’ revenues in 2015 and the overall downturn in the commercial vehicle markets beginning in the fourth quarter of 2015, management determined that the underutilized Toluca real estate value could be better optimized with a sale and lease back arrangement where some but not all of the facility would continue to be occupied and managed by Sypris Technologies. The oil and gas industry has experienced significant price volatility, and as a result the Company’s customers are delaying capital expenditures that support their growth and maintenance projects. The Company has identified some capacity reallocation opportunities between plants in the United States and Mexico. The Company has initiated the process of qualifying production for certain components in Mexico that are currently produced in the United States and completed the qualification for the first group of these components. The Company expects this capacity reallocation may accelerate during 2016 as the capital necessary to fund the reallocation becomes available and the qualification process for the production is complete. Management implemented certain cost reductions at the corporate headquarters that are expected to improve profitability and cash flow throughout 2016. Salary reductions and other SG&A cost reductions were implemented during the first half of 2016 that management believes will continue to benefit the Company throughout future periods. Additional cost reductions have been identified in the area of professional services, administration and lease expenses. On August 16, 2016, the Company completed the sale of certain assets, intellectual property, contracts and other related assets of Sypris Electronics (the “CSS Sale”) comprised principally of its SioMetrics, Cyber Range, Information Security Solutions and Data Systems product lines (see Note 17 “Subsequent Events”). The retained portion of the Sypris Electronics segment will continue to provide electronic manufacturing and design support services to customers in the aerospace, defense, medical and severe environment markets, among others.

Note 5 - Morganton Sale

Note 5 - Morganton Sale	6 Months Ended
	Jul. 03, 2016
Notes to Financial Statements
Mergers, Acquisitions and Dispositions Disclosures [Text Block]	(5) Morganton Sale On July 9, 2015, the Company entered into an asset purchase agreement (the “Agreement”) to sell certain assets used in the Company’s manufacturing facility in Morganton, North Carolina, to its largest customer, Meritor, Inc. (“Meritor”). The Company retained the Morganton plant’s axle shaft manufacturing lines and certain related assets, intellectual property and inventories, which were transitioned to the Company’s Louisville, Kentucky plant in October 2015. All other Morganton equipment, related assets and intellectual property were sold to Meritor (the “Morganton Sale”) for $10,500,000 in cash paid at the closing and other consideration. Meritor purchased related inventories and accounts receivable and assumed or released certain accounts payable and other accrued liabilities, for $2,000,000 (subject to customary post-closing adjustments to actual). Meritor also purchased the Morganton building and real estate for $3,200,000. The total proceeds received of $15,700,000, primarily in consideration for the Morganton sale, were used to pay down the Company’s prior senior secured debt. As a result of the Morganton sale, the Company recognized a gain of $7,744,000. At closing, the parties also entered into an amendment to a secured promissory note with Meritor in an original principal amount of $3,047,000 (the “Meritor Note”) to increase the principal balance by $412,000, effective July 9, 2015. The parties also agreed to increase the Meritor Note by an additional $321,000 in September 2015 to reflect certain roof repairs required at the Morganton facility. The Company repaid the Meritor Note on October 30, 2015.

Note 6 - Toluca Sale-Leaseback

Note 6 - Toluca Sale-Leaseback	6 Months Ended
	Jul. 03, 2016
Notes to Financial Statements
Disposal Groups, Including Discontinued Operations, Disclosure [Text Block]	(6) Toluca Sale-Leaseback On October 30, 2015, the Company entered into a non-binding letter of intent to sell and lease-back its property and buildings in Toluca, Mexico, which is part of the Sypris Technologies Group. As such, the Company concluded that the assets qualified for Assets Held for Sale accounting in accordance with ASC 205 as of December 31, 2015. The assets had a net book value of $3,230,000 as of December 31, 2015. On March 9, 2016, Sypris Technologies Mexico, S. de R.L. de C.V. (“Seller”), a subsidiary of the Company, concluded its sale of the 24-acre Toluca property pursuant to an agreement with Promotora y Desarrolladora Pulso Inmobiliario, S.C. (together with its affiliates and assignees, “Buyer”) for 215,000,000 Mexican Pesos, or approximately $12,182,000 in U.S. currency. Simultaneously, the Seller and the Buyer entered a long-term lease of the 9 acres and buildings currently occupied by Seller and needed for its ongoing business in Toluca (collectively, the “Toluca Sale-Leaseback”). The Company incurred transaction related expenses of $1,116,000. The Company deposited $6,000,000 of the proceeds from the sale-leaseback into a Cash Collateral Account, to be held for up to one year as additional collateral for the Term Loan (see Note 10 “Debt” for further discussion on the Term Loan). This amount has been classified as restricted cash on the consolidated balance sheets as of July 3, 2016. As a result of the Toluca Sale-Leaseback, the Company initially recorded a capital lease of $3,315,000, which is included in property plant and equipment. The Company recorded a gain on the sale of $2,370,000 during the six months ended July 3, 2016, which is included in other income, net in the consolidated statement of operations, and recorded a deferred gain of $5,537,000, which will be recognized over the ten year lease term. The Company’s base rent, which is denominated in U.S. currency, is $936,000 annually, adjusted based on U.S. CPI with certain cap conditions. The following assets have been segregated and included in assets held for sale in the consolidated balance sheet as of December 31, 2015 (in thousands): December 31, 2015 Land and land improvements $ 1,568 Buildings and building improvements 3,658 Accumulated depreciation (1,996 ) Property, plant and equipment, net $ 3,230

Note 7 - Loss Per Common Share

Note 7 - Loss Per Common Share	6 Months Ended
	Jul. 03, 2016
Notes to Financial Statements
Earnings Per Share [Text Block]	(7) Loss Per Common Share The Company computes earnings per share using the two-class method, which is an earnings allocation formula that determines earnings per share for common stock and participating securities. Restricted stock granted by the Company is considered a participating security since it contains a non-forfeitable right to dividends. Our potentially dilutive securities include potential common shares related to our stock options and restricted stock. Diluted earnings per share considers the impact of potentially dilutive securities except in periods in which there is a loss because the inclusion of the potential common shares would have an anti-dilutive effect. Diluted earnings per share excludes the impact of common shares related to our stock options in periods in which the option exercise price is greater than the average market price of our common stock for the period. For the three and six months ended July 3, 2016 and July 5, 2015, diluted weighted average common shares do not include the impact of any outstanding stock options and unvested compensation-related shares because the effect of these items on diluted net loss would be anti-dilutive. A reconciliation of the weighted average shares outstanding used in the calculation of basic and diluted loss per common share is as follows (in thousands): Three Months Ended Six Months Ended July 3, July 5, July 3, July 5, 2016 2015 2016 2015 (Unaudited) (Unaudited) Loss attributable to stockholders: Net loss as reported $ (5,203 ) $ (8,416 ) $ (10,302 ) $ (21,449 ) Less distributed and undistributed earnings allocable to restricted award holders 0 0 0 0 Less dividends declared attributable to restricted award holders 0 0 0 0 Net loss allocable to common stockholders $ (5,203 ) $ (8,416 ) $ (10,302 ) $ (21,449 ) Loss per common share attributable to stockholders: Basic $ (0.26 ) $ (0.43 ) $ (0.52 ) $ (1.09 ) Diluted $ (0.26 ) $ (0.43 ) $ (0.52 ) $ (1.09 ) Weighted average shares outstanding – basic 19,749 19,701 19,725 19,675 Weighted average additional shares assuming conversion of potential common shares 0 0 0 0 Weighted average shares outstanding – diluted 19,749 19,701 19,725 19,675

Note 8 - Inventory

Note 8 - Inventory	6 Months Ended
	Jul. 03, 2016
Notes to Financial Statements
Inventory Disclosure [Text Block]	(8) Inventory Inventory consists of the following (in thousands): July 3, December 31, (Unaudited) Raw materials $ 12,715 $ 12,388 Work in process 10,790 10,366 Finished goods 2,816 3,167 Reserve for excess and obsolete inventory (5,699 ) (5,729 ) $ 20,622 $ 20,192

Note 9 - Property, Plant and Eq

Note 9 - Property, Plant and Equipment	6 Months Ended
	Jul. 03, 2016
Notes to Financial Statements
Property, Plant and Equipment Disclosure [Text Block]	(9) Property, Plant and Equipment Property, plant and equipment consists of the following (in thousands): July 3, December 31, (Unaudited) Land and land improvements $ 219 $ 219 Buildings and building improvements 18,305 18,305 Machinery, equipment, furniture and fixtures 124,821 123,935 Construction in progress 677 759 144,022 143,218 Accumulated depreciation (121,692 ) (121,040 ) $ 22,330 $ 22,178

Note 10 - Debt

Note 10 - Debt	6 Months Ended
	Jul. 03, 2016
Notes to Financial Statements
Long-term Debt [Text Block]	(10) Debt Debt consists of the following: July 3, December 31, (Unaudited) Current: Revolving Credit facility $ 4,853 $ 2,132 Current portion of long term debt 1,714 1,714 Current portion of capital lease obligation 198 0 Current debt $ 6,765 $ 3,846 Long Term: Term loan $ 9,143 $ 10,000 Note payable – related party 6,500 5,500 Capital lease obligation 3,066 0 Less unamortized debt issuance and modification costs (1,347 ) (1,220 ) Long term debt net of unamortized debt costs $ 17,362 $ 14,280 Note Payable – Related Party During 2015, the Company received the proceeds of subordinated indebtedness from GFCM in an amount of $5,500,000. On February 26, 2016, the Company further amended the GFCM note to increase the amount by $1,000,000 to $6,500,000. GFCM is an entity controlled by the Company’s president and chief executive officer, Jeffrey T. Gill and one of our directors, R. Scott Gill. GFCM, Jeffrey T. Gill and R. Scott Gill are significant beneficial stockholders of the Company. The promissory note bears interest at a rate of 8.00% per year. All principal and interest on the promissory note, as amended, will be due and payable on January 30, 2019. Revolving Credit Facility and Term Loan On October 30, 2015, the Company secured debt financing consisting of a $12,000,000 term loan (“Term Loan”) and a $15,000,000 revolving credit facility (“Revolving Credit Facility”). Proceeds from the two new financing arrangements (collectively the “Loan Agreements”) were used in part to repay the senior secured debt with a prior lender and the Meritor Note. Borrowing availability under the Revolving Credit Facility is determined by a weekly borrowing base collateral calculation that includes specified percentages of the value of eligible accounts receivable and inventory, less certain reserves and subject to certain other adjustments. On February 25, 2016, the Company entered into an amendment (the “Term Loan Amendment”) to the Term Loan and an amendment (the “Revolving Credit Amendment”) to the Revolving Credit Facility (together, the “Amendments”). The Amendments increased the Company’s borrowing capability under its Revolving Credit Facility and provided for an agreement on use of proceeds from the sale of its Toluca, Mexico property and buildings, as described below. As a result of the Term Loan Amendment, the Company deposited $6,000,000 of the proceeds of the sale-leaseback of its Toluca, Mexico property and buildings (the “Toluca Sale-Leaseback”) into a Cash Collateral Account, to be held as additional collateral for the Term Loan. Amounts deposited in the Cash Collateral Account that are subsequently used to pay down the principal of the Term Loan must be accompanied by an additional amount equal to the present value of the avoided interest associated with that principal payment. The Term Loan Amendment also permitted the Company to retain the remaining balance of the proceeds from Toluca Sale-Leaseback, and increased the interest rate of the Term Loan by 1.0%. In addition, under the Amendments, the Company’s minimum excess availability provision was reduced from $4,000,000 to $3,000,000. The lender further agreed to remove certain reserves which had been established against the Company’s “borrowing base.” The Company’s obligations under each of the Revolving Credit Facility and the Term Loan, as amended, continue to be guaranteed by the Company’s U.S. subsidiaries and are secured by a first priority lien on substantially all assets of the Company and the guarantors. The Loan Agreements, as amended, contain a number of customary representations and warranties, affirmative, negative and financial maintenance covenants, events of default and remedies upon default, including acceleration and rights to foreclose on the collateral securing each lender. If the Company’s borrowing availability under the Revolving Credit Facility falls below $3,000,000, the Company must maintain a fixed charge coverage ratio of at least 1 to 1, as measured on a trailing twelve months’ basis. The classification of debt as of July 3, 2016 and December 31, 2015 considers debt outstanding under the Loan Agreements on a long-term basis. However, the Revolving Credit Facility allows the lender to establish certain reserves against the borrowing base which could, under certain circumstances, cause a potential event of default. Because such an event is not objectively measureable in advance and because the Company is required to maintain a lock-box arrangement, ASC 470-10-45 requires the otherwise long-term revolving advances to be classified as a current liability. As a result, all borrowings under the Revolving Credit Facility have been classified in the accompanying consolidated balance sheets as a current liability. On August 16, 2016, the Company repaid the Term Loan in full and paid down the Revolving Credit Facility with proceeds generated from the CSS Sale (see Note 17 “Subsequent Events”). In connection with the repayment of the Term Loan, the $6,000,000 balance of the Cash Collateral Account was released. Capital Lease Obligation On March 9, 2016, the Company completed the sale of its 24-acre Toluca property pursuant to an agreement with Promotora y Desarrolladora Pulso Inmobiliario, S.C. (together with its affiliates and assignees, “Buyer”) for 215,000,000 Mexican Pesos, or approximately $12,182,000 in U.S. currency. Simultaneously, the Company entered a long-term lease of the 9 acres and buildings currently occupied by the Company and needed for its ongoing business in Toluca (see Note 6 “Toluca Sale-Leaseback”). The Company incurred transaction related expenses of $1,116,000. The Company recorded an initial gain on the sale of $2,370,000 during the six months ended July 3, 2016, which is included in other income, net in the consolidated income statement, and recorded a deferred gain of $5,155,000 as of July 3, 2016, which will be recognized over the ten year lease term. The Company’s base rent, which is denominated in U.S. currency, is $936,000 annually, adjusted based on U.S. CPI with certain cap conditions. As a result of the Toluca Sale-Leaseback, the Company recorded a capital lease obligation of $3,264,000 for the building. The future minimum payments for capital leases as of July 3, 2016 are as follows (in thousands): Capital Lease 2016 (remaining 6 months) $ 274 2017 503 2018 549 2019 549 2020 503 Thereafter 2,834 Total future payments 5,212 Less: Amount representing interest (1,948 ) Present value of future minimum payments 3,264 Less: Current portion (198 ) Long term portion $ 3,066

Note 11 - Segment Data

Note 11 - Segment Data	6 Months Ended
	Jul. 03, 2016
Notes to Financial Statements
Segment Reporting Disclosure [Text Block]	(11) Segment Data The Company is organized into two business groups, Sypris Technologies and Sypris Electronics. These segments are each managed separately because of the distinctions between the products, services, markets, customers, technologies and workforce skills of the segments. Sypris Technologies provides manufacturing services for a variety of customers that outsource forged and finished steel components and subassemblies. Sypris Technologies also manufactures high-pressure closures and other fabricated products. Sypris Electronics provides manufacturing and technical services as an outsourced service provider and manufactures complex data storage systems, trusted solutions for identity management, cryptographic key distribution and cyber analytics (see Note 17 “Subsequent Events”). There was no intersegment net revenue recognized in any of the periods presented. The following table presents financial information for the reportable segments of the Company (in thousands): Three Months Ended Six Months Ended July 3, July 5, July 3, July 5, 2016 2015 2016 2015 (Unaudited) (Unaudited) Net revenue from unaffiliated customers: Sypris Technologies $ 14,769 $ 32,010 $ 32,596 $ 60,080 Sypris Electronics 8,735 8,746 17,846 17,685 $ 23,504 $ 40,756 $ 50,442 $ 77,765 Gross profit (loss): Sypris Technologies $ (260 ) $ 581 $ (916 ) $ (3,523 ) Sypris Electronics 982 (615 ) 2,365 332 $ 722 $ (34 ) $ 1,449 $ (3,191 ) Operating (loss) income: Sypris Technologies $ (2,050 ) $ (2,370 ) $ (5,024 ) $ (11,738 ) Sypris Electronics (909 ) (3,111 ) (1,969 ) (4,701 ) General, corporate and other (1,688 ) (2,356 ) (4,038 ) (4,291 ) $ (4,647 ) $ (7,837 ) $ (11,031 ) $ (20,730 ) July 3, December 31, (Unaudited) Total assets: Sypris Technologies $ 36,838 $ 38,968 Sypris Electronics 23,534 23,845 General, corporate and other 9,442 4,079 $ 69,814 $ 66,892

Note 12 - Commitments and Conti

Note 12 - Commitments and Contingencies	6 Months Ended
	Jul. 03, 2016
Notes to Financial Statements
Commitments and Contingencies Disclosure [Text Block]	(12) Commitments and Contingencies The provision for estimated warranty costs is recorded at the time of sale and periodically adjusted to reflect actual experience. The Company’s warranty liability, which is included in accrued liabilities in the accompanying balance sheets as of July 3, 2016 and December 31, 2015, was $839,000 and $830,000, respectively. The Company’s warranty expense for the six months ended July 3, 2016 and July 5, 2015 was $52,000 and $83,000, respectively. Additionally, the Company sells three and five-year extended warranties for one of its link encryption products. The revenue from the extended warranties is deferred and recognized ratably over the contractual term. As of July 3, 2016 and December 31, 2015, the Company had deferred $330,000 and $495,000, respectively, related to extended warranties. The Company bears insurance risk as a member of a group captive insurance entity for certain general liability, automobile and workers’ compensation insurance programs and a self-insured employee health program. The Company records estimated liabilities for its insurance programs based on information provided by the third-party plan administrators, historical claims experience, expected costs of claims incurred but not paid, and expected costs to settle unpaid claims. The Company monitors its estimated insurance-related liabilities on a quarterly basis. As facts change, it may become necessary to make adjustments that could be material to the Company’s consolidated results of operations and financial condition. The Company believes that its present insurance coverage and level of accrued liabilities are adequate. The Company is involved in certain litigation and contract issues arising in the normal course of business. While the outcome of these matters cannot, at this time, be predicted in light of the uncertainties inherent therein, management does not expect that these matters will have a material adverse effect on the consolidated financial position or results of operations of the Company. The Company has various current and previously-owned facilities subject to a variety of environmental regulations. The Company has received certain indemnifications either from companies previously owning these facilities or from purchasers of those facilities. As of July 3, 2016 and December 31, 2015, no amounts were accrued for any environmental matters. As of July 3, 2016, the Company had outstanding purchase commitments of approximately $9,759,000, primarily for the acquisition of inventory and manufacturing equipment. The Company accounts for loss contingencies in accordance with U.S. generally accepted accounting principles (GAAP). Estimated loss contingencies are accrued only if the loss is probable and the amount of the loss can be reasonably estimated. With respect to a particular loss contingency, it may be probable that a loss has occurred but the estimate of the loss is within a wide range or undeterminable. If the Company deems an amount within the range to be a better estimate than any other amount within the range, that amount will be accrued. However, if no amount within the range is a better estimate than any other amount, the minimum amount of the range is accrued. During the fourth quarter of 2015, the Company gave notification regarding its intention to not renew the lease for its Tampa, FL facility, which will expire on December 31, 2016. During the first quarter of 2016, the Company entered into lease negotiations to extend the current lease for a smaller portion of the facility, but was unable to reach an agreement on the economics of a lease renewal with its current landlord. On May 3, 2016, the Company entered a lease for an alternative facility, which it expects to occupy upon the expiration of the current lease. The Company, Sypris Electronics and the landlord of the Tampa facility are currently involved in litigation over certain terms of the lease (see Item 1, “Legal Proceedings”). As such, it is reasonably possible that the Company may be required to make certain repairs to the current facility upon exit. The current estimate of the Company’s reasonably possible loss contingency is from no liability to $4,000,000. While the Company intends to vigorously dispute these claims, the Company accrued $500,000 during the six months ended July 3, 2016 related to its estimated potential obligation under the lease. This accrual is included in accrued liabilities in the Company’s consolidated balance sheet as of July 3, 2016.

Note 13 - Income Taxes

Note 13 - Income Taxes	6 Months Ended
	Jul. 03, 2016
Notes to Financial Statements
Income Tax Disclosure [Text Block]	(13) Income Taxes The provision for income taxes includes federal, state, local and foreign taxes. The Company’s effective tax rate varies from period to period due to the proportion of foreign and domestic pre-tax income expected to be generated by the Company. The Company provides for income taxes for its domestic operations at a statutory rate of 35% and for its foreign operations at a statutory rate of 30% in 2016 and 2015. Reconciling items between the federal statutory rate and the effective tax rate also include the expected usage of federal net operating loss carryforwards, state income taxes, valuation allowances and certain other permanent differences. The Company recognizes liabilities or assets for the deferred tax consequences of temporary differences between the tax bases of assets or liabilities and their reported amounts in the financial statements in accordance with ASC 740, Income Taxes As of July 3, 2016 and December 31, 2015, the Company has no undistributed earnings of foreign subsidiaries that are classified as permanently reinvested. The Company did not repatriate any funds to the U.S. during 2015 and expects the repatriation of any available non-U.S. cash holdings during 2016 will be limited to the amount of undistributed earnings as of December 31, 2015. The loss recognized by the Company’s Mexican operations during 2015 and the first half of 2016 reduced the undistributed earnings of that entity and the Company has therefore recognized a deferred income tax benefit equal to the reduction in the U.S deferred tax liability and a corresponding increase in the deferred tax asset valuation allowance. Should the U.S. valuation allowance be released at some future date, the U.S. tax on foreign earnings not permanently reinvested might have a material effect on our effective tax rate.

Note 14 - Employee Benefit Plan

Note 14 - Employee Benefit Plans	6 Months Ended
	Jul. 03, 2016
Notes to Financial Statements
Pension and Other Postretirement Benefits Disclosure [Text Block]	(14) Employee Benefit Plans Pension expense (benefit) consisted of the following (in thousands): Three Months Ended Six Months Ended July 3, July 5, July 3, July 5, 2016 2015 2016 2015 (Unaudited) (Unaudited) Service cost $ 0 $ 3 $ 3 $ 7 Interest cost on projected benefit obligation 411 411 837 845 Net amortizations, deferrals and other costs 158 177 332 347 Expected return on plan assets (489 ) (558 ) (985 ) (1,122 ) $ 80 $ 33 $ 187 $ 77

Note 15 - Accumulated Other Com

Note 15 - Accumulated Other Comprehensive Loss	6 Months Ended
	Jul. 03, 2016
Notes to Financial Statements
Comprehensive Income (Loss) Note [Text Block]	(15) Accumulated Other Comprehensive Loss The Company’s accumulated other comprehensive loss consists of employee benefit-related adjustments and foreign currency translation adjustments. Accumulated other comprehensive loss consisted of the following (in thousands): July 3, December 31, (Unaudited) Foreign currency translation adjustments $ (10,253 ) $ (9,554 ) Employee benefit related adjustments – U.S. (16,177 ) (16,177 ) Employee benefit related adjustments – Mexico (29 ) (29 ) Accumulated other comprehensive loss $ (26,459 ) $ (25,760 )

Note 16 - Fair Value of Financi

Note 16 - Fair Value of Financial Instruments	6 Months Ended
	Jul. 03, 2016
Notes to Financial Statements
Fair Value, Measurement Inputs, Disclosure [Text Block]	(16) Fair Value of Financial Instruments Cash, accounts receivable, accounts payable and accrued liabilities are reflected in the consolidated financial statements at their carrying amount which approximates fair value because of the short-term maturity of those instruments. The carrying amount of debt outstanding at July 3, 2016 approximates fair value, and is based upon a market approach (Level 2).

Note 17 - Subsequent Events

Note 17 - Subsequent Events	6 Months Ended
	Jul. 03, 2016
Notes to Financial Statements
Subsequent Events [Text Block]	(17) Subsequent Events On August 16, 2016, the Company completed the sale of certain assets, intellectual property, contracts and other assets of Sypris Electronics (the “CSS Sale”) comprised principally of its SioMetrics, Cyber Range, Information Security Solutions and Data Systems product lines. The assets were sold for $42,000,000 in cash consideration, $1,500,000 of which is to be held in escrow for up to 12 months in connection with certain customary representations, warranties, covenants and indemnifications of the Company. A portion of the proceeds from the CSS Sale was used to pay off the Term Loan and pay down the outstanding balances under the Revolving Credit Facility. The retained portion of the Sypris Electronics segment will continue to provide electronic manufacturing and design support services to customers in the aerospace, defense, medical and severe environment markets, among others.

Significant Accounting Policies

Significant Accounting Policies (Policies)	6 Months Ended
	Jul. 03, 2016
Accounting Policies [Abstract]
New Accounting Pronouncements, Policy [Policy Text Block]	In May 2014, the FASB issued Accounting Standards Update (“ASU”) No. 2014-09, Revenue from Contracts with Customers. This ASU supersedes the revenue recognition requirements in “Accounting Standard Codification 605 - Revenue Recognition” and most industry-specific guidance. The standard requires that entities recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which a company expects to be entitled in exchange for those goods or services. The new guidance will also require new disclosures about the nature, amount, timing and uncertainty of revenue and cash flows arising from contracts with customers. ASU 2014-09 was originally effective for us on January 1, 2017; however, in July 2015 the FASB decided to defer the effective date by one year. Early application is not permitted, but reporting entities may choose to adopt the standard as of the original effective date. The standard permits the use of either the retrospective or cumulative effect transition method. The Company is currently assessing the impact of the adoption of ASU 2014-09 on its results of operations, financial position and cash flows. The Company does not intend to early adopt this standard. In August 2014, the FASB issued ASU No. 2014-15, Presentation of Financial Statements-Going Concern. The new guidance requires management to assess if there is substantial doubt about an entity’s ability to continue as a going concern for each annual and interim period. If conditions or events give rise to substantial doubt, disclosures are required. ASU 2014-15 is effective for the annual period ending after December 15, 2016, and for annual and interim periods thereafter; early application is permitted. The Company does not intend to early adopt this standard. The Company is currently assessing the impact of adopting this ASU on its consolidated financial statements and related disclosures. In April 2015, the FASB issued ASU No. 2015-03, Interest - Imputation of Interest (Subtopic 835-30): Simplifying the Presentation of Debt Issuance Costs. The amendments in this ASU 2015-03 require that debt issuance costs related to a recognized debt liability be presented in the balance sheet as a direct deduction from the carrying amount of that debt liability, consistent with debt discounts. The recognition and measurement guidance for debt issuance costs are not affected by the amendments in this ASU 2015-03. In August 2015 the FASB issued ASU No. 2015-15, Interest - Imputation of Interest (Subtopic 835-30): Presentation and Subsequent Measurement of Debt Issuance Costs Associated with Line-of-Credit Arrangements - Amendments to SEC Paragraphs Pursuant to Staff Announcement at June 18, 2015 EITF Meeting. ASU 2015-15 was issued to address presentation or subsequent measurement of debt issuance costs related to line-of-credit arrangements that were not found in ASU 2015-03. Given the absence of authoritative guidance within ASU 2015-03 for debt issuance costs related to line-of-credit arrangements, the ASU provides that the SEC staff would not object to an entity deferring and presenting debt issuance costs as an asset and subsequently amortizing the deferred debt issuance costs ratably over the term of the line-of-credit arrangement, regardless of whether there are any outstanding borrowings on the line-of-credit arrangement. These standards are effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2015, and should be applied retrospectively. Early adoption is permitted. The Company adopted this guidance January 1, 2016. As a result of adoption, debt issuance costs of $1,220,000 were reclassified from assets to reduce long-term-debt as of December 31, 2015 . In July 2015, the FASB issued ASU No. 2015-11, which simplifies the subsequent measurement of inventory. It replaces the current lower of cost or market test with a lower of cost or net realizable value test. The standard is effective for public entities for annual reporting periods beginning after December 15, 2016, and interim periods therein. Early adoption is permitted. The new guidance must be applied prospectively. The adoption of this standard is not expected to have a material impact on the Company’s consolidated financial statements. In February 2016, the FASB issued ASU No. 2016-02, Leases (Topic 842). The new standard was issued to increase transparency and comparability among organizations by recognizing lease assets and lease liabilities on the balance sheet and disclosing key information about leasing arrangements. This standard affects any entity that enters into a lease, with some specified scope exemptions. The guidance in this update supersedes FASB ASC 840, Leases. The amendments in this ASU are effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. The Company is currently assessing the impact of adopting this ASU on its consolidated financial statements and related disclosures. In March 2016, the FASB issued ASU No. 2016-09, Improvements to Employee Share-Based Payment Accounting (ASU 2016-09) requiring an entity to record all excess tax benefits and tax deficiencies as an income tax benefit or expense in the income statement. ASU 2016-09 will also require an entity to elect an accounting policy to either estimate the number of forfeitures or account for forfeitures when they occur. ASU 2016-09 becomes effective for the Company during the first quarter 2017. The Company is currently evaluating the effect that the updated standard will have on its consolidated financial statements and related disclosures. In March 2016, the FASB issued ASU 2016-08, Revenue from Contracts with Customers (Topic 606): Principal versus Agent Considerations, which further clarifies the implementation guidance on principal versus agent considerations, and in April 2016, the FASB issued ASU 2016-10, Revenue from contracts with customers (Topic 606): Identifying performance obligations and licensing, an update on identifying performance obligations and accounting for licenses of intellectual property. Additionally, in May 2016, the FASB issued ASU 2016-12, Revenue from contracts with customers (Topic 606): Narrow-scope improvements and practical expedients, which includes amendments for enhanced clarification of the guidance. This guidance is effective for fiscal years beginning on or after December 15, 2017 including interim periods within those fiscal years and early adoption is permitted. We are evaluating the impact that adoption of this guidance will have on our consolidated financial statements.

Note 6 - Toluca Sale-Leaseback

Note 6 - Toluca Sale-Leaseback (Tables)	6 Months Ended
	Jul. 03, 2016
Notes Tables
Disposal Groups, Including Discontinued Operations [Table Text Block]	December 31, 2015 Land and land improvements $ 1,568 Buildings and building improvements 3,658 Accumulated depreciation (1,996 ) Property, plant and equipment, net $ 3,230

Note 7 - Loss Per Common Share

Note 7 - Loss Per Common Share (Tables)	6 Months Ended
	Jul. 03, 2016
Notes Tables
Schedule of Earnings Per Share, Basic and Diluted [Table Text Block]	Three Months Ended Six Months Ended July 3, July 5, July 3, July 5, 2016 2015 2016 2015 (Unaudited) (Unaudited) Loss attributable to stockholders: Net loss as reported $ (5,203 ) $ (8,416 ) $ (10,302 ) $ (21,449 ) Less distributed and undistributed earnings allocable to restricted award holders 0 0 0 0 Less dividends declared attributable to restricted award holders 0 0 0 0 Net loss allocable to common stockholders $ (5,203 ) $ (8,416 ) $ (10,302 ) $ (21,449 ) Loss per common share attributable to stockholders: Basic $ (0.26 ) $ (0.43 ) $ (0.52 ) $ (1.09 ) Diluted $ (0.26 ) $ (0.43 ) $ (0.52 ) $ (1.09 ) Weighted average shares outstanding – basic 19,749 19,701 19,725 19,675 Weighted average additional shares assuming conversion of potential common shares 0 0 0 0 Weighted average shares outstanding – diluted 19,749 19,701 19,725 19,675

Note 8 - Inventory (Tables)

Note 8 - Inventory (Tables)	6 Months Ended
	Jul. 03, 2016
Notes Tables
Schedule of Inventory, Current [Table Text Block]	July 3, December 31, (Unaudited) Raw materials $ 12,715 $ 12,388 Work in process 10,790 10,366 Finished goods 2,816 3,167 Reserve for excess and obsolete inventory (5,699 ) (5,729 ) $ 20,622 $ 20,192

Note 9 - Property, Plant and 28

Note 9 - Property, Plant and Equipment (Tables)	6 Months Ended
	Jul. 03, 2016
Notes Tables
Property, Plant and Equipment [Table Text Block]	July 3, December 31, (Unaudited) Land and land improvements $ 219 $ 219 Buildings and building improvements 18,305 18,305 Machinery, equipment, furniture and fixtures 124,821 123,935 Construction in progress 677 759 144,022 143,218 Accumulated depreciation (121,692 ) (121,040 ) $ 22,330 $ 22,178

Note 10 - Debt (Tables)

Note 10 - Debt (Tables)	6 Months Ended
	Jul. 03, 2016
Notes Tables
Schedule of Long-term Debt Instruments [Table Text Block]	July 3, December 31, (Unaudited) Current: Revolving Credit facility $ 4,853 $ 2,132 Current portion of long term debt 1,714 1,714 Current portion of capital lease obligation 198 0 Current debt $ 6,765 $ 3,846 Long Term: Term loan $ 9,143 $ 10,000 Note payable – related party 6,500 5,500 Capital lease obligation 3,066 0 Less unamortized debt issuance and modification costs (1,347 ) (1,220 ) Long term debt net of unamortized debt costs $ 17,362 $ 14,280
Schedule of Future Minimum Lease Payments for Capital Leases [Table Text Block]	Capital Lease 2016 (remaining 6 months) $ 274 2017 503 2018 549 2019 549 2020 503 Thereafter 2,834 Total future payments 5,212 Less: Amount representing interest (1,948 ) Present value of future minimum payments 3,264 Less: Current portion (198 ) Long term portion $ 3,066

Note 11 - Segment Data (Tables)

Note 11 - Segment Data (Tables)	6 Months Ended
	Jul. 03, 2016
Notes Tables
Schedule of Segment Reporting Information, by Segment [Table Text Block]	Three Months Ended Six Months Ended July 3, July 5, July 3, July 5, 2016 2015 2016 2015 (Unaudited) (Unaudited) Net revenue from unaffiliated customers: Sypris Technologies $ 14,769 $ 32,010 $ 32,596 $ 60,080 Sypris Electronics 8,735 8,746 17,846 17,685 $ 23,504 $ 40,756 $ 50,442 $ 77,765 Gross profit (loss): Sypris Technologies $ (260 ) $ 581 $ (916 ) $ (3,523 ) Sypris Electronics 982 (615 ) 2,365 332 $ 722 $ (34 ) $ 1,449 $ (3,191 ) Operating (loss) income: Sypris Technologies $ (2,050 ) $ (2,370 ) $ (5,024 ) $ (11,738 ) Sypris Electronics (909 ) (3,111 ) (1,969 ) (4,701 ) General, corporate and other (1,688 ) (2,356 ) (4,038 ) (4,291 ) $ (4,647 ) $ (7,837 ) $ (11,031 ) $ (20,730 )
Reconciliation of Assets from Segment to Consolidated [Table Text Block]	July 3, December 31, (Unaudited) Total assets: Sypris Technologies $ 36,838 $ 38,968 Sypris Electronics 23,534 23,845 General, corporate and other 9,442 4,079 $ 69,814 $ 66,892

Note 14 - Employee Benefit Pl31

Note 14 - Employee Benefit Plans (Tables)	6 Months Ended
	Jul. 03, 2016
Notes Tables
Schedule of Net Benefit Costs [Table Text Block]	Three Months Ended Six Months Ended July 3, July 5, July 3, July 5, 2016 2015 2016 2015 (Unaudited) (Unaudited) Service cost $ 0 $ 3 $ 3 $ 7 Interest cost on projected benefit obligation 411 411 837 845 Net amortizations, deferrals and other costs 158 177 332 347 Expected return on plan assets (489 ) (558 ) (985 ) (1,122 ) $ 80 $ 33 $ 187 $ 77

Note 15 - Accumulated Other C32

Note 15 - Accumulated Other Comprehensive Loss (Tables)	6 Months Ended
	Jul. 03, 2016
Notes Tables
Schedule of Accumulated Other Comprehensive Income (Loss) [Table Text Block]	July 3, December 31, (Unaudited) Foreign currency translation adjustments $ (10,253 ) $ (9,554 ) Employee benefit related adjustments – U.S. (16,177 ) (16,177 ) Employee benefit related adjustments – Mexico (29 ) (29 ) Accumulated other comprehensive loss $ (26,459 ) $ (25,760 )

Note 1 - Nature of Business (De

Note 1 - Nature of Business (Details Textual)	6 Months Ended
	Jul. 03, 2016
Number of Operating Segments	2

Note 3 - Recent Accounting Pr34

Note 3 - Recent Accounting Pronouncements (Details Textual)	12 Months Ended
	Dec. 31, 2015USD ($)
Reclassification from Assets to Reduce Long-term Debt [Member] | December 31, 2015 [Member]
Prior Period Reclassification Adjustment	$ 1,220,000

Note 4 - Management's Plans (De

Note 4 - Management's Plans (Details Textual) - USD ($)	Mar. 09, 2016	Feb. 25, 2016	Jul. 03, 2016	Apr. 03, 2016	Feb. 26, 2016	Dec. 31, 2015
Gill Family Capital Management [Member] | Promissory Note [Member]
Subordinated Debt			$ 6,500,000		$ 6,500,000	$ 5,500,000
Term Loan [Member]
Additional Amount of Cash to Be Deposited Into a Controlled Cash Collateral Account to be Held for One Year		$ 6,000,000	$ 6,000,000	$ 6,000,000
Toluca [Member]
Sale Leaseback Transaction, Net Proceeds, Investing Activities				$ 12,182,000
Additional Amount of Cash to Be Deposited Into a Controlled Cash Collateral Account to be Held for One Year	$ 6,000,000

Note 5 - Morganton Sale (Detail

Note 5 - Morganton Sale (Details Textual) - USD ($)	Jul. 09, 2015	Sep. 30, 2015
Morganton [Member] | Certain Assets [Member]
Proceeds from Sales of Business, Affiliate and Productive Assets	$ 10,500,000
Morganton [Member] | Certain Assets and Liabilities [Member]
Proceeds from Sales of Business, Affiliate and Productive Assets	2,000,000
Morganton [Member] | Morganton Facility [Member]
Proceeds from Sales of Business, Affiliate and Productive Assets	3,200,000
Morganton [Member]
Proceeds from Sales of Business, Affiliate and Productive Assets	15,700,000
Gain (Loss) on Disposition of Business	7,744,000
Meritor Note [Member]
Debt Instrument, Face Amount	3,047,000
Meritor Note Amendment [Member]
Secured Debt	$ 412,000	$ 321,000

Note 6 - Toluca Sale-Leasebac37

Note 6 - Toluca Sale-Leaseback (Details Textual)	Mar. 09, 2016USD ($)a	Mar. 09, 2016MXNa	Apr. 03, 2016USD ($)	Jul. 03, 2016USD ($)	Dec. 31, 2015USD ($)
Toluca [Member] | Sypris Technologies Mexico, S. de R.L. de C.V. [Member]
Area of Real Estate Property | a	24	24
Sale Leaseback Transaction, Net Proceeds, Investing Activities	$ 12,182,000	MXN 215,000,000
Sale Leaseback Transaction, Portion of Real Estate Property Leased Back to Seller | a	9	9
Toluca [Member] | Property, Plant and Equipment [Member]
Sale Leaseback Transaction, Amount Due under Financing Arrangement				$ 3,315,000
Toluca [Member] | Other Income [Member]
Sale Leaseback Transaction, Current Period Gain Recognized				2,370,000
Sale Leaseback Transaction, Deferred Gain, Net				5,537,000
Toluca [Member]
Disposal Group, Including Discontinued Operation, Assets, Current					$ 3,230,000
Sale Leaseback Transaction, Net Proceeds, Investing Activities			$ 12,182,000
Sale Leaseback Transaction, Transaction Related Expenses	$ 1,116,000
Additional Amount of Cash to Be Deposited Into a Controlled Cash Collateral Account to be Held for One Year	$ 6,000,000
Sale Leaseback Transaction, Deferred Gain, Net				$ 5,155,000
Capital Lease Agreement Term				10 years
Sale Leaseback Transaction, Annual Rental Payments			$ 936,000	$ 936,000
Disposal Group, Including Discontinued Operation, Assets, Current				$ 0	$ 3,230,000

Note 6 - Components of Assets H

Note 6 - Components of Assets Held for Sale (Details) - USD ($)	Jul. 03, 2016	Dec. 31, 2015
Land and Land Improvements [Member] | Toluca [Member]
Property, plant and equipment, Gross		$ 1,568,000
Building and Building Improvements [Member] | Toluca [Member]
Property, plant and equipment, Gross		3,658,000
Toluca [Member]
Accumulated depreciation		(1,996,000)
Property, plant and equipment, net		3,230,000
Property, plant and equipment, net	$ 0	$ 3,230,000

Note 7 - Loss Per Common Shar39

Note 7 - Loss Per Common Share (Details Textual) - shares	3 Months Ended		6 Months Ended
	Jul. 03, 2016	Jul. 05, 2015	Jul. 03, 2016	Jul. 05, 2015
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount	0	0	0	0

Note 7 - Reconciliation of Weig

Note 7 - Reconciliation of Weighted Average Shares Outstanding Used in Calculation of Basic and Diluted (Loss) Earnings Per Common Share (Details) - USD ($)	3 Months Ended		6 Months Ended
	Jul. 03, 2016	Jul. 05, 2015	Jul. 03, 2016	Jul. 05, 2015
Net loss as reported	$ (5,203,000)	$ (8,416,000)	$ (10,302,000)	$ (21,449,000)
Less distributed and undistributed earnings allocable to restricted award holders	0	0	0	0
Less dividends declared attributable to restricted award holders	0	0	0	0
Net loss allocable to common stockholders	$ (5,203,000)	$ (8,416,000)	$ (10,302,000)	$ (21,449,000)
Basic (in dollars per share)	$ (0.26)	$ (0.43)	$ (0.52)	$ (1.09)
Diluted (in dollars per share)	$ (0.26)	$ (0.43)	$ (0.52)	$ (1.09)
Weighted average shares outstanding – basic (in shares)	19,749,000	19,701,000	19,725,000	19,675,000
Weighted average additional shares assuming conversion of potential common shares (in shares)	0	0	0	0
Weighted average shares outstanding – diluted (in shares)	19,749,000	19,701,000	19,725,000	19,675,000

Note 8 - Inventory Components (

Note 8 - Inventory Components (Details) - USD ($)	Jul. 03, 2016	Dec. 31, 2015
Raw materials	$ 12,715,000	$ 12,388,000
Work in process	10,790,000	10,366,000
Finished goods	2,816,000	3,167,000
Reserve for excess and obsolete inventory	(5,699,000)	(5,729,000)
	$ 20,622,000	$ 20,192,000

Note 9 - Property, Plant and 42

Note 9 - Property, Plant and Equipment Components (Details) - USD ($)	Jul. 03, 2016	Dec. 31, 2015
Land and Land Improvements [Member]
Gross property, plant and equipment	$ 219,000	$ 219,000
Building and Building Improvements [Member]
Gross property, plant and equipment	18,305,000	18,305,000
Property, Plant and Equipment, Other Types [Member]
Gross property, plant and equipment	124,821,000	123,935,000
Construction in Progress [Member]
Gross property, plant and equipment	677,000	759,000
Gross property, plant and equipment	144,022,000	143,218,000
Accumulated depreciation	(121,692,000)	(121,040,000)
Property plant and equipment net	$ 22,330,000	$ 22,178,000

Note 10 - Debt (Details Textual

Note 10 - Debt (Details Textual)	Mar. 09, 2016USD ($)a	Mar. 09, 2016MXNa	Feb. 26, 2016USD ($)	Feb. 25, 2016USD ($)	Jul. 03, 2016USD ($)	Apr. 03, 2016USD ($)	Jul. 03, 2016USD ($)	Jul. 05, 2015USD ($)	Feb. 24, 2016USD ($)	Dec. 31, 2015USD ($)	Oct. 30, 2015USD ($)
Promissory Note [Member] | Gill Family Capital Management [Member]
Subordinated Debt			$ 6,500,000		$ 6,500,000		$ 6,500,000			$ 5,500,000
Proceeds from Issuance of Subordinated Long-term Debt			$ 1,000,000
Debt Instrument, Interest Rate, Stated Percentage					8.00%		8.00%
Term Loan [Member]
Debt Instrument, Face Amount											$ 12,000,000
Additional Amount of Cash to Be Deposited Into a Controlled Cash Collateral Account to be Held for One Year				$ 6,000,000	$ 6,000,000	$ 6,000,000
Debt Instrument, Interest Rate, Increase (Decrease)				1.00%
New Credit Facility [Member] | Revolving Credit Facility [Member]
Line of Credit Facility, Maximum Borrowing Capacity											$ 15,000,000
Line of Credit Facility, Fixed Charge Coverage Ratio Trigger, Borrowing Availability				$ 3,000,000					$ 4,000,000
Fixed Charge Coverage Ratio Applicable If Borrowing Availability Falls Below a Specified Level							1
Toluca [Member] | Sypris Technologies Mexico, S. de R.L. de C.V. [Member]
Area of Land | a	24	24
Sale Leaseback Transaction, Net Proceeds, Investing Activities	$ 12,182,000	MXN 215,000,000
Toluca [Member] | Other Income [Member]
Gain (Loss) on Disposition of Property Plant Equipment, Excluding Oil and Gas Property and Timber Property							$ 2,370,000
Sale Leaseback Transaction, Deferred Gain, Net					5,537,000		5,537,000
Toluca [Member] | Buildings and Land [Member]
Sale Leaseback Transaction, Amount Due under Financing Arrangement					3,264,000		3,264,000
Toluca [Member]
Additional Amount of Cash to Be Deposited Into a Controlled Cash Collateral Account to be Held for One Year	6,000,000
Sale Leaseback Transaction, Net Proceeds, Investing Activities						$ 12,182,000
Sale Leaseback Transaction, Transaction Related Expenses	$ 1,116,000
Sale Leaseback Transaction, Deferred Gain, Net					$ 5,155,000		5,155,000
Sale Leaseback Transaction, Term of Lease						10 years
Sale Leaseback Transaction, Annual Rental Payments						$ 936,000	936,000
Sypris Technologies Mexico, S. de R.L. de C.V. [Member] | Area of Land Occupied by Seller [Member]
Area of Land | a	9	9
Gain (Loss) on Disposition of Property Plant Equipment, Excluding Oil and Gas Property and Timber Property							$ 2,391,000	$ 0

Note 10 - Debt Components (Deta

Note 10 - Debt Components (Details) - USD ($)	Jul. 03, 2016	Dec. 31, 2015
Revolving Credit facility	$ 4,853,000	$ 2,132,000
Current portion of long term debt	1,714,000	1,714,000
Current portion of capital lease obligation	198,000	0
Current debt	6,765,000	3,846,000
Term loan	9,143,000	10,000,000
Note payable – related party	6,500,000	5,500,000
Long term portion	3,066,000	0
Less unamortized debt issuance and modification costs	(1,347,000)	(1,220,000)
Long term debt net of unamortized debt costs	$ 17,362,000	$ 14,280,000

Note 10 - Capital Lease Future

Note 10 - Capital Lease Future Minimum Payments (Details) - USD ($)	Jul. 03, 2016	Dec. 31, 2015
2016 (remaining 6 months)	$ 274,000
2,017	503,000
2,018	549,000
2,019	549,000
2,020	503,000
Thereafter	2,834,000
Total future payments	5,212,000
Less: Amount representing interest	(1,948,000)
Present value of future minimum payments	3,264,000
Less: Current portion	(198,000)	$ 0
Long term portion	$ 3,066,000	$ 0

Note 11 - Segment Data (Details

Note 11 - Segment Data (Details Textual)	6 Months Ended
	Jul. 03, 2016
Number of Operating Segments	2

Note 11 - Financial Information

Note 11 - Financial Information from Reportable Segments - Income Statement (Details) - USD ($)	3 Months Ended		6 Months Ended
	Jul. 03, 2016	Jul. 05, 2015	Jul. 03, 2016	Jul. 05, 2015
Sypris Technologies [Member]
Net revenue from unaffiliated customers	$ 14,769,000	$ 32,010,000	$ 32,596,000	$ 60,080,000
Gross profit (loss)	(260,000)	581,000	(916,000)	(3,523,000)
Operating loss	(2,050,000)	(2,370,000)	(5,024,000)	(11,738,000)
Sypris Electronics [Member]
Net revenue from unaffiliated customers	8,735,000	8,746,000	17,846,000	17,685,000
Gross profit (loss)	982,000	(615,000)	2,365,000	332,000
Operating loss	(909,000)	(3,111,000)	(1,969,000)	(4,701,000)
Corporate and Other [Member]
Operating loss	(1,688,000)	(2,356,000)	(4,038,000)	(4,291,000)
Net revenue from unaffiliated customers	23,504,000	40,756,000	50,442,000	77,765,000
Gross profit (loss)	722,000	(34,000)	1,449,000	(3,191,000)
Operating loss	$ (4,647,000)	$ (7,837,000)	$ (11,031,000)	$ (20,730,000)

Note 11 - Financial Informati48

Note 11 - Financial Information From Reportable Segments - Balance Sheet (Details) - USD ($)	Jul. 03, 2016	Dec. 31, 2015
Sypris Technologies [Member]
Total Assets	$ 36,838,000	$ 38,968,000
Sypris Electronics [Member]
Total Assets	23,534,000	23,845,000
General, Corporate and Other [Member]
Total Assets	9,442,000	4,079,000
Total Assets	$ 69,814,000	$ 66,892,000

Note 12 - Commitments and Con49

Note 12 - Commitments and Contingencies (Details Textual) - USD ($)	6 Months Ended		12 Months Ended
	Jul. 03, 2016	Jul. 05, 2015	Dec. 31, 2015	Apr. 03, 2016
Link Encryption Products [Member] | Minimum [Member]
Extended Product Warranty Term	3 years
Link Encryption Products [Member] | Maximum [Member]
Extended Product Warranty Term	5 years
Minimum [Member]
Loss Contingency, Estimate of Possible Loss	$ 0
Maximum [Member]
Loss Contingency, Estimate of Possible Loss	4,000,000
Accrued Liabilities [Member]
Loss Contingency Accrual	500,000
Accrual for Environmental Loss Contingencies			$ 0	$ 0
Standard and Extended Product Warranty Accrual	839,000		830,000
Product Warranty Expense	52,000	$ 83,000
Extended Product Warranty Accrual, Increase for Warranties Issued	330,000		$ 495,000
Purchase Obligation	$ 9,759,000

Note 13 - Income Taxes (Details

Note 13 - Income Taxes (Details Textual)	6 Months Ended	12 Months Ended
	Jul. 03, 2016	Dec. 31, 2015
Effective Income Tax Rate Reconciliation, at Federal Statutory Income Tax Rate, Percent	35.00%	35.00%
Effective Income Tax Rate Reconciliation, Foreign Income Tax Rate Differential, Percent	30.00%	30.00%

Note 14 - Components of Pension

Note 14 - Components of Pension Expense (Benefit) (Details) - USD ($)	3 Months Ended		6 Months Ended
	Jul. 03, 2016	Jul. 05, 2015	Jul. 03, 2016	Jul. 05, 2015
Service cost	$ 0	$ 3,000	$ 3,000	$ 7,000
Interest cost on projected benefit obligation	411,000	411,000	837,000	845,000
Net amortizations, deferrals and other costs	158,000	177,000	332,000	347,000
Expected return on plan assets	(489,000)	(558,000)	(985,000)	(1,122,000)
Pension expense (benefit)	$ 80,000	$ 33,000	$ 187,000	$ 77,000

Note 15 - Accumulated Other C52

Note 15 - Accumulated Other Comprehensive Loss Components (Details) - USD ($)	Jul. 03, 2016	Dec. 31, 2015
UNITED STATES
Employee benefit related adjustments	$ (16,177,000)	$ (16,177,000)
MEXICO
Employee benefit related adjustments	(29,000)	(29,000)
Foreign currency translation adjustments	(10,253,000)	(9,554,000)
Accumulated other comprehensive loss	$ (26,459,000)	$ (25,760,000)

Note 17 - Subsequent Events (De

Note 17 - Subsequent Events (Details Textual) - Subsequent Event [Member] - Sypris Electronics [Member]	Aug. 16, 2016USD ($)
Proceeds from Sale of Productive Assets	$ 42,000,000
Escrow Deposit	$ 1,500,000
Escrow Deposit, Holding Period	1 year