News Releases

Ultralife Corporation
Oct 30, 2014
Ultralife Corporation Reports Third Quarter Results

NEWARK, N.Y., Oct. 30, 2014 (GLOBE NEWSWIRE) -- Ultralife Corporation (Nasdaq:ULBI) reported breakeven operating results on revenue of $16.1 million for the quarter ended September 28, 2014. For the third quarter of 2013, the Company reported an operating profit of $0.7 million on revenue of $20.4 million.

"On the strength of a 36% increase in commercial sales in Battery & Energy Products, consolidated sales to commercial customers surpassed sales to Government/Defense customers for the third consecutive quarter and Battery & Energy Products sales grew 3%. Our strategy to embed our battery systems into the design of our commercial customers' products is bearing fruit and giving us a strong foundation to continue to grow commercial sales while strengthening our customer relationships," said Michael D. Popielec, Ultralife's President and Chief Executive Officer.

"Communications Systems remains challenged by sluggish government tactical communications spending," added Popielec. "Nevertheless, based on customer feedback, our value proposition meets the needs of diverse governmental entities for reliability and mobility, and therefore we continue to invest in new product development supporting our Communications Systems business development activities. With a strong balance sheet and growing contribution of Battery & Energy Products towards the Company's operating profitability, we have the resources to continue strengthening our position with Government/Defense customers while growing our commercial business."    

Third Quarter 2014 Financial Results

Revenue was $16.1 million, compared to $20.4 million for the third quarter of 2013, a $4.3 million, or 21%, decline reflecting an increase of $0.4 million in Battery & Energy Products sales offset by a $4.7 million decrease in Communications Systems sales. Battery & Energy Products sales were $13.9 million, compared to $13.5 million last year, a 3% increase, with sales to commercial customers increasing 36% and Government/Defense sales decreasing 25%. Communications Systems sales were $2.1 million, compared to $6.9 million for the same period last year, a decrease of 69% reflecting ongoing soft order flow from Government/Defense customers and continued delays in approving U.S. Government orders.   On a consolidated basis, sales to commercial customers accounted for 53% of total revenue, up from 30% last year.

Gross profit was $4.5 million, or 27.9% of revenue, compared to $6.1 million, or 30.1% of revenue, for the same quarter a year ago. The 220 basis point decrease reflects primarily the lower mix of Communications Systems sales.  Battery & Energy Products gross margin was 27.4%, 70 basis points higher than the 26.7% reported last year reflecting increased sales of higher margin commercial products. Communications Systems gross margin was 31.3% compared to 36.9% last year, a decrease of 560 basis points on lower volume and unfavorable product mix.     

Operating expenses were $4.5 million, $.9 million or 17% lower than last year primarily due to continued reductions in discretionary spending, the timing of certain expenses related to new product development and lower sales commissions.    Operating expenses were 28.3% of revenue, compared to 26.9% for the year earlier period.  

With gross profit nearly equal to operating expenses the Company reported a slight operating loss of $55,000 for the fiscal 2014 third quarter. For the comparable period last year, the Company reported operating income of $0.7 million.    

The Company reported a net loss of $.3 million, or $0.02 per share, compared to net income of $0.6 million, or $0.04 per share, for the third quarter of 2013.    

During the third quarter, Ultralife repurchased 160,557 shares under its 1.8 million share repurchase program.


Despite the Company's commercial sales momentum, management now expects revenue for the year to be up to 20% below last year given the reduction in global government and defense spending exacerbated by the continued timing uncertainties of several Communications Systems projects. As a result, management expects an operating loss of approximately 3% - 4% of sales for the year.

Management cautions that the timing of orders and shipments may cause variability in quarterly results. 

About Ultralife Corporation

Ultralife Corporation serves its markets with products and services ranging from portable 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 third 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)
 September 28,December 31,
Current assets:    
Cash and cash equivalents $15,571 $16,489
Trade accounts receivable, net 10,470 14,238
Inventories, net 28,500 26,053
Prepaid expenses and other current assets 2,029 1,878
Total current assets 56,570 58,658
Property, equipment and improvements, net 9,897 10,202
Goodwill, intangibles and other assets 21,073 21,334
Total assets $87,540 $90,194
Current liabilities:    
Accounts payable $7,142 $7,053
Accrued compensation and related benefits 1,565 1,908
Accrued expenses and other current liabilities 3,327 3,214
Total current liabilities 12,034 12,175
Deferred income taxes and other non-current liabilities 4,496 4,374
Total liabilities 16,530 16,549
Shareholders' equity:    
Common stock  1,894  1,888
Capital in excess of par value  175,698  174,932
Accumulated deficit  (97,773)  (94,804)
Accumulated other comprehensive loss  (450)  (614)
Treasury stock  (8,247)  (7,658)
Total Ultralife equity  71,122  73,744
Noncontrolling interest  (112)  (99)
Total shareholders' equity  71,010  73,645
Total liabilities and shareholders' equity $87,540 $90,194
(In Thousands except per share amounts)
 Three month periods endedNine month periods ended
 September 28,September 29,September 28,September 29,
Battery & energy products $13,913 $13,507 $40,000 $41,216
Communication systems 2,149 6,854 6,546 17,443
Total revenues 16,062 20,361 $46,546 58,659
Cost of products sold:        
Battery & energy products 10,100 9,906 29,510 31,025
Communication systems 1,476 4,328 4,003 10,606
Total cost of products sold 11,576 14,234 33,513 41,631
Gross profit 4,486 6,127 13,033 17,028
Operating expenses:        
Research and development 1,014 1,418 4,010 4,456
Selling, general and administrative 3,527 4,057 11,498 13,419
Total operating expenses 4,541 5,475 15,508 17,875
Operating (loss) income  (55)  652  (2,475)  (847)
Other (expense) income:        
Interest income  3  13  12  27
Interest and financing expense  (56)  (66)  (153)  (199)
Miscellaneous  (158)  (8)  (128)  (31)
(Loss) income from continuing operations before income taxes  (266)  591  (2,744)  (1,050)
Income tax provision (benefit)  60  (16)  177  135
Net (loss) income from continuing operations  (326)  607  (2,921)  (1,185)
Income (loss) from discontinued operations, net of tax  -   15  (61)  159
Net (loss) income  (326)  622  (2,982)  (1,026)
Net loss attributable to noncontrolling interest 3 22 13 31
Net (loss) income attributable to Ultralife  (323)  644  (2,969)  (995)
Other comprehensive income:        
Foreign currency translation adjustments 29 32 164 53
Comprehensive (loss) income attributable to Ultralife  $ (294)  $ 676  $ (2,805)  $ (942)
Net (loss) income per share attributable to Ultralife common shareholders - basic:        
Continuing operations  $ (.02)  $ .04  $ (.17)  $ (.07)
Discontinued operations - .00 .00 .01
Total  $ (.02)  $ .04  $ (.17)  $ (.06)
Net income per share attributable to Ultralife common shareholders - diluted:        
Continuing operations   $.04    
Discontinued operations   .00    
Total   $.04    
Weighted average shares outstanding - basic 17,490 17,467 17,510 17,461
Weighted average shares outstanding - diluted   17,532    
CONTACT: Company Contact:

         Ultralife Corporation

         Philip A. Fain

         (315) 210-6110


         Investor Relations Contact:


         Jody Burfening

         (212) 838-3777