Universal Stainless & Alloy Products Inc. has reported that sales for the first quarter of 2010 were USD 34.7 million compared with USD 42.2 million in the first quarter of 2009 and USD 26.7 million in the fourth quarter of 2009. Net income for the first quarter of 2010 was USD 1.4 million, or USD 0.21 per diluted share. The company recorded negative cash flow from operations of USD 2.8 million for the first quarter of 2010 compared with positive cash flows of USD 2.6 million in the first quarter of 2009 and USD 2.5 million in the fourth quarter of 2009. Cash flow decreased due to the investment in managed working capital necessary to support increased sales activity and growing backlogs. In addition, capital expenditures were USD 1.1 million, including USD 629,000 for a melt shop upgrade project, which is expected to be completed in the third quarter. At 31 March 2010, the company had cash of USD 37.8 million and total debt of USD 12.9 million.