News Releases

Ultralife Corporation
Aug 03, 2017
Ultralife Corporation Reports Second Quarter Results

NEWARK, N.Y., Aug. 03, 2017 (GLOBE NEWSWIRE) -- Ultralife Corporation (NASDAQ:ULBI) reported operating income of $1.3 million on revenue of $19.9 million for the second quarter ended July 2, 2017.  For the second quarter of 2016, the Company reported operating income of $0.5 million on revenue of $20.4 million. 

"Building on our solid first quarter performance, for the second quarter on a year-over-year basis we more than doubled operating income and doubled EPS to $0.07.  We are also encouraged that our year-over-year core product revenues increased 15% when excluding last year's VIPER shipments.  Battery & Energy Products produced an 11% increase in commercial sales, including 10% higher medical sales, while Communications Systems delivered a 92% increase in core product sales.  These strong sales gains demonstrate effective execution of our diversification strategy and the benefit of investments we have made in new product development and sales reach expansion.  In line with this strategy, we have made a strategic decision to invest up to $4.3 million of capital in our Newark facility for the manufacture of primary batteries for the high-growth, wireless internet of things device market," said Michael D. Popielec. "Looking ahead, we are seeing initial indications of increased demand from government/defense customers and are well positioned to continue growing our commercial sales.  As a result, we believe we remain on track to deliver another year of profitable growth."  

Second Quarter 2017 Financial Results

Revenue was $19.9 million, a decrease of $.4 million, or 2%, compared to $20.4 million for the second quarter of 2016 reflecting a $1.1 million increase in Battery & Energy Products sales offset by $1.5 million lower Communications Systems sales.   Battery & Energy Products sales increased 7% to $16.9 million compared to $15.8 million last year, reflecting increases in both commercial and government/defense sales of 11% and 1%, respectively.  The gain in commercial sales included 10% growth of medical batteries and chargers.  Communications Systems sales declined 34% to $3.1 million compared to $4.6 million for the same period last year which included $3.0 million of Vehicle Installed Power Enhanced Riflemen Appliqué ("VIPER") shipments, while sales of core products such as our 20-watt amplifiers, universal vehicle adaptors and power supplies increased 92% over the prior-year period. 

Gross profit was $6.2 million, or 31.2% of revenue, compared to $5.9 million, or 29.0% of revenue, for the same quarter a year ago.  Battery & Energy Products' gross margin was 28.1%, compared to 29.6% last year, a decrease of 150 basis points due primarily to incremental supply chain and logistics fees incurred this quarter.   Communications Systems' gross margin increased to 48.4%, the highest level ever reported for the segment, compared to 26.8% for the prior year demonstrating the high value proposition associated with our core amplifier and integrated solutions products.          

Operating expenses were $4.9 million compared to $5.4 million last year, a reduction of 9.3% reflecting continued tight control over discretionary spending in line with our business model.  Operating expenses were 24.6% of revenue compared to 26.5% of revenue for the year earlier period.

Operating income was $1.3 million compared to $0.5 million last year. 

Net income was $1.1 million, or $0.07 per share, compared to net income of $0.4 million, or $0.03 per share, for the second quarter of 2016.    Earnings per share for the trailing twelve-month period increased to $.36 compared to $.32 at the end of the first quarter of 2017.

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 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 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 revenues from key customers, 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)
 July 2, December 31, 
  2017   2016  
Current Assets:    
Cash and Cash Equivalents$15,016  $10,706  
Trade Accounts Receivable, Net 13,543   13,179  
Inventories 24,490   23,456  
Prepaid Expenses and Other Current Assets 1,754   2,079  
Total Current Assets 54,803   49,420  
Property, Equipment and Improvements, Net 7,833   7,999  
Goodwill, Intangibles and Other Assets 27,629   27,325  
Total Assets$90,265  $84,744  

Current Liabilities:
Accounts Payable$7,647  $7,292  
Accrued Compensation and Related Benefits 1,875   1,258  
Accrued Expenses and Other Current Liabilities 2,352   2,778  
Total Current Liabilities 11,874   11,328  
Deferred Income Taxes and Other Non-Current Liabilities 5,642   5,556  
Total Liabilities 17,516   16,884  
Shareholders' Equity:    
Common Stock 1,957   1,932  
Capital in Excess of Par Value 179,519   178,163  
Accumulated Deficit (87,793)  (90,542) 
Accumulated Other Comprehensive Loss (2,327)  (3,080) 
Treasury Stock (18,443)  (18,443) 
Total Ultralife Equity 72,913   68,030  
Non-Controlling Interest (164)  (170) 
Total Shareholders' Equity 72,749   67,860  
Total Liabilities and Shareholders' Equity$90,265  $84,744  

(In Thousands Except Per Share Amounts)
 Three Month Periods Ended Six Month Periods Ended
 July 2, June 26, July 2, June 26,
  2017  2016  2017   2016
  Battery & Energy Products$16,880 $15,759 $34,359  $32,199
  Communication Systems 3,059  4,612  7,615   9,005
  Total Revenues 19,939  20,371 $41,974  $41,204
Cost of Products Sold:       
  Battery & Energy Products 12,139  11,095  24,688   22,318
  Communication Systems 1,579  3,376  4,175   6,581
  Total Cost of Products Sold 13,718  14,471  28,863   28,899
  Gross Profit 6,221  5,900  13,111   12,305
Operating Expenses:       
  Research and Development 1,185  1,425  2,323   3,081
  Selling, General and Administrative 3,714  3,976  7,625   8,243
  Total Operating Expenses 4,899  5,401  9,948   11,324
Operating Income  1,322  499  3,163   981
Other Expense 49  24  142   137
Income Before Income Taxes 1,273  475  3,021   844
Income Tax Provision 179  33  266   121
Net Income  1,094  442  2,755   723
Net( Income)  Loss Attributable to Non-Controlling Interest -  4  (6)  22
Net Income Attributable to Ultralife Corporation$1,094 $446 $2,749  $745
Net Income Per Share Attributable to Ultralife Common Shareholders — Basic$.07 $.03 $.18 $.05
Net Income Per Share Attributable to Ultralife Common Shareholders — Diluted$.07 $.03 $.17 $.05
Weighted Average Shares Outstanding — Basic 15,510  15,528  15,461   15,290
Weighted Average Shares Outstanding — Diluted 15,850  15,419  15,752   15,545


Company Contact:		
Ultralife Corporation		
Philip A. Fain 		
(315) 210-6110		

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