NEWARK, N.Y., July 28, 2016 (GLOBE NEWSWIRE) -- Ultralife Corporation (NASDAQ:ULBI) reported operating income of $0.5 million on revenue of $20.4 million for the second quarter ended June 26, 2016.  For the second quarter of 2015, the Company reported operating income of $0.8 million on revenue of $19.0 million. 

"Through solid execution of our business model parameters including close control of spending in a challenging economic environment, we delivered profitability for the seventh consecutive quarter and generated positive cash flow," said Michael D. Popielec, Ultralife's President and Chief Executive Officer.  "Despite some economic uncertainties weighing on customer's buying decisions, we still have our sights set on delivering profitable growth for 2016.  Our gross margins and liquidity give us the flexibility to continue to invest in new product development in support of our long-term global diversification strategy."

Second Quarter 2016 Financial Results

Revenue was $20.4 million, an increase of $1.4 million, or 7%, compared to $19.0 million for the second quarter of 2015 reflecting the addition of Accutronics and higher Communications Systems sales.  Battery & Energy Products sales were $15.8 million compared to $16.0 million last year, reflecting the contribution of Accutronics sales which offset the revenue reduction resulting from a large 9-Volt and large metering and toll pass battery orders in the second quarter of 2015.  Communications Systems sales grew 55% to $4.6 million compared to $3.0 million for the same period last year as a result of shipments under the Vehicle Installed Power Enhanced Riflemen Appliqué ("VIPER") Program.

Gross profit was $5.9 million, or 29.0% of revenue, compared to $5.9 million, or 30.9% of revenue, for the same quarter a year ago.  Battery & Energy Products' gross margin was 29.6%, compared to 28.4% last year, an increase of 120 basis points reflecting favorable product mix including the contribution of Accutronics.  Communications Systems' gross margin declined to 26.8% compared to 44.2% for the prior year due to sales mix.        

Operating expenses were $5.4 million compared to $5.0 million last year reflecting the addition of Accutronics and increased spending on new product development in response to a higher level of proposal activity, partially offset by tight control over discretionary spending.  Operating expenses were 26.5% of revenue compared to 26.6% of revenue for the year earlier period.  

Operating income was $0.5 million compared to $0.8 million last year. 

Net income was $0.4 million, or $0.03 per share, compared to a net income of $0.8 million, or $0.05 per share, for the second quarter of 2015.   

Share Repurchase Program

The Company's Share Repurchase Program expired on June 2, 2016.  From the inception of the Program on May 1, 2014 through its expiration, the Company repurchased 2,592,095 shares for an aggregate cost of $10.5 million.

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 www.ultralifecorporation.com.

Conference Call Information

Ultralife will hold its second 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 http://investor.ultralifecorporation.com. 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. 

ULTRALIFE CORPORATION AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS (Dollars in Thousands)
(Unaudited)
ASSETS
		June 26,							December 31,
			2016							2015
Current Assets:
Cash and Cash Equivalents		$	3,262						$	14,533
Trade Accounts Receivable, Net			13,735							11,430
Inventories			26,553							23,814
Prepaid Expenses and Other Current Assets			2,440							2,169
Total Current Assets			45,990							51,946
Property, Equipment and Improvements, Net			8,858							9,038
Goodwill, Intangibles and Other Assets			28,450							20,538
Total Assets		$	83,298						$	81,522
LIABILITIES AND SHAREHOLDERS' EQUITY
Current Liabilities:
Accounts Payable		$	6,654						$	6,494
Accrued Compensation and Related Benefits			1,818							2,377
Accrued Expenses and Other Current Liabilities			2,570							1,976
Current Portion of Debt			831							-
Total Current Liabilities			11,873							10,847
Deferred Income Taxes and Other Non-Current Liabilities			5,569							4,659
Total Liabilities			17,442							15,506
Shareholders' Equity:
Common Stock			1,920							1,918
Capital in Excess of Par Value			177,430							177,007
Accumulated Deficit			(93,306				)			(94,051			)
Accumulated Other Comprehensive Loss			(1,608				)			(907			)
Treasury Stock			(18,415				)			(17,808			)
Total Ultralife Equity			66,021							66,159
Non-Controlling Interest			(165				)			(143			)
Total Shareholders' Equity			65,856							66,016
Total Liabilities and Shareholders' Equity		$	83,298						$	81,522

ULTRALIFE CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME
(In Thousands Except Per Share Amounts)
(Unaudited)
	Three Month Periods Ended								Six Month Periods Ended
	June 26,				June 28,				June 26,				June 28,
		2016				2015				2016				2015
Revenues:
Battery & Energy Products	$	15,759			$	15,972			$	32,199			$	32,248
Communication Systems		4,612				2,983				9,005				5,884
Total Revenues	$	20,371			$	18,955			$	41,204			$	38,132
Cost of Products Sold:
Battery & Energy Products		11,095				11,430				22,318				22,922
Communication Systems		3,376				1,666				6,581				3,344
Total Cost of Products Sold		14,471				13,096				28,899				26,266
Gross Profit		5,900				5,859				12,305				11,866
Operating Expenses:
Research and Development		1,425				1,334				3,081				2,693
Selling, General and Administrative		3,976				3,708				8,243				7,534
Total Operating Expenses		5,401				5,042				11,324				10,227
Operating Income		499				817				981				1,639
Other Income (Expense)		(24	)			28				(137	)			(160	)
Income Before Income Taxes		475				845				844				1,479
Income Tax Provision		33				71				121				182
Net Income		442				774				723				1,297
Net Loss Attributable to Non-Controlling Interest		4				14				22				24
Net Income Attributable to Ultralife Corporation	$	446			$	788			$	745			$	1,321
Net Income Per Share Attributable to Ultralife Common     Shareholders — Basic	$	.03			$	.05			$	.05			$	.08
Net Income Per Share Attributable to Ultralife Common     Shareholders — Diluted	$	.03			$	.05			$	.05			$	.08
Weighted Average Shares Outstanding — Basic		15,258				16,557				15,290				16,945
Weighted Average Shares Outstanding — Diluted		15,419				16,597				15,545				16,977

Company Contact:		
Ultralife Corporation		
Philip A. Fain 		
(315) 210-6110		
pfain@ulbi.com		

Investor Relations Contact:
LHA 
Jody Burfening
(212) 838-3777
jburfening@lhai.com