News Releases

Ultralife Corporation
Feb 11, 2016
Ultralife Corporation Reports Fourth Quarter Results

NEWARK, N.Y., Feb. 11, 2016 (GLOBE NEWSWIRE) -- Ultralife Corporation (NASDAQ:ULBI) reported operating income of $0.5 million on revenue of $19.3 million for the quarter ended December 31, 2015 compared to operating income of $1.0 million on revenue of $19.9 million for the fourth quarter of 2014.  For total-year 2015, Ultralife produced operating income of $3.3 million on revenue of $76.4 million compared to an operating loss of $1.4 million on revenue of $66.5 million for 2014.

"Fiscal 2015 was a strong year for Ultralife," said Michael D. Popielec, Ultralife's President and Chief Executive Officer.  "We achieved our objective of producing profitable revenue growth by increasing revenue 15%, expanding gross margin 140 basis points to 30.5% and turning earnings per share to a positive $0.18 compared to a loss of $0.12 per share last year.  Revenue growth was balanced between government/defense and commercial customers and included an increasing contribution from high value proposition new products. In addition, building on the operating leverage we began to realize in 2014, we generated operating income growth of $4.8 million on a $9.9 million increase in revenue, a 48% incremental return, while continuing to invest in new product development." 

Popielec added, "Our performance during the fourth quarter was solid as we ramped up production of new products, began to deliver shipments under the VIPER program and prepared to acquire Accutronics, a transaction we completed in January.   We ended the year in a strong position to deliver profitable growth in 2016 through continued maturation of diverse market opportunities, ongoing new product development and disciplined adherence to our business model parameters."

Fourth Quarter 2015 Financial Results

Revenue was $19.3 million compared to $19.9 million for the fourth quarter of 2014 with nearly all of the $0.7 million reduction due to lower Communications Systems sales.  Battery & Energy Products sales were $16.6 million, $0.1 million lower than last year with increased sales to government/defense customers partially offsetting a decline in commercial sales reflecting large stock-in orders to some customers in the prior year.  Communications Systems sales declined to $2.6 million from $3.2 million for the same period last year reflecting the fulfillment of a large order in the fourth quarter of 2014.

Gross profit declined to $5.6 million from $6.3 million for the fourth quarter a year ago.  As a percentage of revenue, gross profit declined 290 basis points to 28.8% from 31.7% last year, primarily driven by a greater weighting of government/defense sales, costs in our Communications Systems' segment associated with the ramp-up of some new products to large scale production, and incremental social pension costs related to increased employment levels in our China battery operation.   Accordingly, Battery & Energy Products' gross margin was 27.6% compared to 30.0% last year, a decrease of 240 basis points, and Communications Systems gross margin was 36.4% compared to 40.6% last year, a decrease of 420 basis points.

Operating expenses were $5.0 million compared to $5.3 million for the fourth quarter of 2014, reflecting higher new product development spending, a non-cash charge of $0.15 million to write down the value of a Communications Systems trademark, and expenses related to the acquisition of Accutronics, offset by continued control over discretionary spending.  The trademark impairment charge is based on compliance with Generally Accepted Accounting Principles, taking into account time delays in the awarding by government/defense customers in recent years of certain large projects in our Communications Systems pipeline.  As a percentage of revenue, operating expenses declined 40 basis points to 26.1% compared to 26.5% a year ago. 

Operating income was $0.5 million compared to $1.0 million for the fourth quarter of 2014 reflecting lower gross profit partially offset by lower operating expenses.  Operating margin was 2.7% compared to 5.2% for the year-earlier period.

Net income was $0.5 million, or $0.03 per share, compared to net income of $0.9 million, or $0.05 per share, for the fourth quarter of 2014.  The after-tax impact of the non-cash trademark impairment charge on fourth quarter EPS was $.01.

Share Repurchase Program

During fiscal 2015, Ultralife repurchased 2,225,437 shares under its current 3.4 million share repurchase program, which will end April 30, 2016. Since the inception of the share repurchase program on May 1, 2014, the Company has repurchased 2,442,191 shares at an average cost of $4.04 per share. 

About Ultralife Corporation

Ultralife Corporation serves its markets with products and services ranging from power solutions to communications and electronics systems. Through its engineering and collaborative approach to problem solving, Ultralife serves government, defense and commercial customers across the globe.

Headquartered in Newark, New York, the company's business segments include:  Battery & Energy Products and Communications Systems. Ultralife has operations in North America, Europe and Asia. For more information, visit

Conference Call Information

Ultralife will hold its fourth quarter earnings conference call today at 10:00 AM ET. To participate in the live call, please dial (800) 915-4836 at least ten minutes before the scheduled start time, identify yourself and ask for the Ultralife call.  A live webcast of the conference call will be available to investors in the Events & Presentations section of the Company's website at  For those who cannot listen to the live broadcast, a replay of the webcast will be available shortly after the call at the same location.

This press release may contain forward-looking statements based on current expectations that involve a number of risks and uncertainties.  The potential risks and uncertainties that could cause actual results to differ materially include:  potential reductions in U.S. military spending, uncertain global economic conditions and acceptance of our new products on a global basis.  The Company cautions investors not to place undue reliance on forward-looking statements, which reflect the Company's analysis only as of today's date. The Company undertakes no obligation to publicly update forward-looking statements to reflect subsequent events or circumstances.  Further information on these factors and other factors that could affect Ultralife's financial results is included in Ultralife's Securities and Exchange Commission (SEC) filings, including the latest Annual Report on Form 10-K. 

(Dollars in Thousands)
 December 31,
  2015 2014 
Current assets:   
Cash and cash equivalents$14,533  $17,866 
Trade accounts receivable, net 11,430   11,295 
Inventories, net 23,814   26,086 
Prepaid expenses and other current assets 2,174   1,603 
Total current assets 51,951   56,850 
Property, equipment and improvements, net 9,038   9,812 
Goodwill, intangibles and other assets 20,582   20,980 
Total assets$81,571  $87,642 
Current liabilities:   
Accounts payable$  6,494  $  6,996 
Accrued compensation and related benefits 2,377   1,725 
Accrued expenses and other current liabilities 1,987   2,490 
Total current liabilities 10,858   11,211 
Deferred income taxes and other non-current liabilities       4,653   4,518 
Total liabilities 15,511   15,729 
Commitments and contingencies (Note 10)   
Shareholders' equity:   
Common stock 1,918   1,895 
Capital in excess of par value 177,007   175,939 
Accumulated deficit (94,051)  (96,920)
Accumulated other comprehensive loss (863)  (467)
Treasury stock (17,808)  (8,420)
Total Ultralife equity 66,203   72,027 
Noncontrolling interest (143)  (114)
Total shareholders' equity 66,060   71,913 
Total liabilities and shareholders' equity$81,571  $87,642 

(In Thousands except per share amounts)
 Three month periods ended Year ended
 December 31, December 31,
  2015  2014   2015   2014 
Battery & energy products$16,634  $16,772  $65,272  $56,772 
Communication systems 2,617   3,176   11,155   9,722 
Total revenues $19,251   $19,948  $76,427  $66,494 
Cost of products sold:       
Battery & energy products 12,036   11,745   46,574   41,256 
Communication systems 1,665   1,886   6,537   5,888 
Total cost of products sold 13,701   13,631   53,111   47,144 
Gross profit 5,550   6,317   23,316   19,350 
Operating expenses:       
Research and development 1,686   1,323   5,603   5,333 
Selling, general and administrative 3,196   3,962   14,233   15,460 
Intangible asset impairment 150   -   150   - 
Total operating expenses 5,032   5,285   19,986   20,793 
Operating income (loss) 518   1,032   3,330   (1,443)
Other (expense) income:       
Interest income 1   1   3   13 
Interest and financing expense (51)  (65)  (248)  (218)
Miscellaneous 26   (26)  65   (154)
Income (loss) from continuing operations before income taxes 494   942   3,150   (1,802)
Income tax (benefit) provision (2)  91   310   268 
Net income (loss) from continuing operations 496   851   2,840   (2,070)
Income (loss) from discontinued operations, net of tax -   -   -   (61)
Net income (loss) 496   851   2,840   (2,131)
Net loss attributable to non-controlling interest 6   2   29   15 
Net income (loss) attributable to Ultralife 502   853   2,869   (2,116)
Other comprehensive income:       
Foreign currency translation adjustments (113)  (17)  (396)  147 
Comprehensive income (loss) attributable to Ultralife$  389  $  836  $2,473  $(1,969)
Net income (loss) per share attributable to Ultralife common shareholders — basic:       
Continuing operations$.03 $.05 $.18 $(.12)
Discontinued operations.00 .00 .00 (.00)
Total$.03 $.05 $.18 $(.12)
Net income per share attributable to Ultralife common shareholders — diluted:       
Continuing operations$.03 $.05 $.17  
Discontinued operations.00 .00 .00  
Total$.03 $.05 $.17  
Weighted average shares outstanding — basic 15,271   17,374   16,182   17,475 
Weighted average shares outstanding — diluted 15,757   17,513   16,419   


Company Contact:	
Ultralife Corporation
Philip A. Fain 	
(315) 332-7100	

Investor Relations Contact:
Jody Burfening
(212) 838-3777