Counterfeit testing process hits electronic firm’s revenues

Electronics firm Sypris Solutions says a change in supplier – and resulting need for counterfeit testing – contributed to missed revenue targets in the third quarter.

The supplier of electronic components to the aerospace, automotive and petrochemical sectors said that delays to supply of a component by its established supplier meant it had to swap to a new vendor. The time taken for counterfeit mitigation testing delayed the resumption of supplies to its customer from the first to the third quarters.

“The component successfully passed the test and customer approval was received, allowing production to resume to full run rate as we close September,” said Sypris’ chief financial officer Tony Allen. Nevertheless it is an example of the impact of fake knock-offs in the marketplace, even for a company who is not directly affected by counterfeiting.