NEWARK, N.Y., Nov. 02, 2017 (GLOBE NEWSWIRE) -- Ultralife Corporation (NASDAQ:ULBI) reported operating income of $1.3 million on revenue of $21.0 million for the third quarter ended October 1, 2017.  For the quarter ended September 25, 2016, the Company reported operating income of $1.1 million on revenue of $19.6 million.

“Third quarter sales grew 7% and operating profit increased 11% further illustrating the solid operating leverage of our business model. We are particularly pleased to report broad-based sales growth across a variety of end markets, both commercial and government/defense, domestically and internationally.  Commercial sales increased 8%, boosted by a 14% gain in medical sales, while government/defense sales grew 6%, including a 58% increase within our Battery & Energy Products business.  Having more than doubled both operating profit and EPS for the first nine months of the year, we are well positioned towards delivering another year of profitable growth,” said Michael D. Popielec, President and Chief Executive Officer.  “In addition, the BA-5390 $21.4 million IDIQ award received in March, the VIPER $4.7 million contract received in August, and the recent BA-5790/5795 CFx $49.8 million IDIQ award received in September serve as positive indicators of future growth potential as we finish out 2017 and head into 2018.”

Third Quarter 2017 Financial Results

Revenue was $21.0 million, an increase of $1.4 million, or 7%, compared to $19.6 million for the third quarter of 2016 reflecting a $3.7 million increase in Battery & Energy Products sales partially offset by $2.3 million lower Communications Systems sales.  Battery & Energy Products sales increased 25% to $18.6 million compared to $14.9 million last year.  Communications Systems sales declined 48% to $2.4 million compared to $4.7 million for the same period last year which included $2.3 million of Vehicle Installed Power Enhanced Riflemen Appliqué (“VIPER”) shipments. 

Gross profit was $6.3 million, or 29.7% of revenue, compared to $6.0 million, or 30.5% of revenue, for the same quarter a year ago.  Battery & Energy Products’ gross margin was 27.9%, compared to 30.3% last year, a decrease of 240 basis points reflecting product mix and incremental supply chain and logistics fees.  Communications Systems’ gross margin increased to 44.0% compared to 31.4% for the prior year demonstrating the high value proposition associated with core amplifier and integrated solutions products.       

Operating expenses were $5.0 million compared to $4.9 million last year reflecting continued tight control over discretionary spending.  Operating expenses were 23.7% of revenue compared to 24.8% of revenue for the year earlier period.  

Operating income was $1.3 million compared to $1.1 million last year for an operating margin of 6.0% compared to 5.8% last year. 

Net income was $1.1 million, or $0.07 per share, versus net income of $1.0 million, or $0.07 per share, for the third quarter of 2016.  Earnings per share for the trailing twelve-month period are $0.36.

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.ultralifecorp.com.

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 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 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. 

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 

Source: Ultralife Corporation