UNITED STATES
SECURITIES
AND EXCHANGE COMMISSION
Washington,
D.C. 20549
FORM
8-K
Current
Report
PURSUANT TO SECTION 13 OR 15 (D) OF THE SECURITIES EXCHANGE ACT OF 1934
Date
of Report (Date
of earliest event reported):
May
1, 2008
ULTRALIFE
BATTERIES, INC.
(Exact
name of registrant as specified in its charter)
Delaware
(State
or other jurisdiction of incorporation or organization)
|
0-20852 |
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16-1387013 |
|
(Commission File Number)
|
|
(I.R.S. Employer Identification No.)
|
|
2000 Technology Parkway, Newark, New York 14513 |
|
(Address of principal executive offices) (Zip Code) |
(315) 332-7100
(Registrant’s
telephone number, including area code)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
⃞ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
⃞ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
⃞ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
⃞ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
Item
2.02. Results of Operations and Financial Condition.
Ultralife (the “Company”) reported revenue of $49.6 million for its
first quarter of 2008, an increase of 53% compared with $32.3 million
reported in the same three-month period in 2007. Operating income for
the quarter was $2.4 million compared with $0.6 million last year.
The Company’s press release is attached as Exhibit 99.1 to this Form
8-K. The information set forth in this Form 8-K and the attached exhibit
is being furnished to and not filed with the Securities and Exchange
Commission and shall not be deemed to be incorporated by reference in
any filing under the Securities Exchange Act of 1934, as amended, or the
Securities Act of 1933, as amended, except to the extent specifically
provided in any such filing.
Item
9.01. Financial Statements, Pro Forma Financials and Exhibits.
| (a) | Exhibits. | |
|
99.1 Press Release dated May 1, 2008. |
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
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ULTRALIFE BATTERIES, INC. |
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Dated: |
May 1, 2008 |
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By: /s/ Robert W. Fishback |
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Robert W. Fishback |
||
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Vice President of Finance and CFO |
INDEX TO EXHIBITS
|
(99) |
Additional Exhibits |
|
| 99.1 |
Press Release dated May 1, 2008. |
|
Exhibit 99.1
Ultralife Reports First Quarter Results
NEWARK, N.Y.--(BUSINESS WIRE)--Ultralife (NASDAQ: ULBI) reported revenue of $49.6 million for its first quarter of 2008, an increase of 53% compared with $32.3 million reported in the same three-month period in 2007. Operating income for the quarter was $2.4 million compared with $0.6 million last year.
Revenue in the first quarter rose $17.3 million over the same quarter last year primarily due to strong sales of advanced communications systems related to three major contracts announced in the latter half of 2007, and an increase in design and installation services revenue related to the contribution from RedBlack Communications and Stationary Power Services, acquired in September 2007 and November 2007, respectively. As a percentage of revenue, gross margin for the first quarter of 2008 was 22%, compared to 23% in the same quarter a year ago.
Operating expenses for the first quarter of 2008 totaled $8.5 million, up from $6.9 million a year ago. The $1.6 million increase includes $0.8 million related to the addition of RedBlack and Stationary Power and $0.8 million related to incremental sales and marketing efforts and higher administrative costs related to operating a larger organization.
Net income for the first quarter of 2008 was $2.4 million, or $0.14 per diluted share, compared with a net loss of $36,000, or $0.00 per share, for the same quarter in 2007. Included in first quarter 2008 results was a $0.3 million non-operating gain related to the early conversion of the $10.5 million debt held by the sellers of McDowell Research into 700,000 shares of common stock.
“In the first quarter we delivered advanced communications systems against planned schedules as the supply delays we experienced in the fourth quarter were resolved, and production is currently on track to meet delivery schedules,” said John D. Kavazanjian, president and chief executive officer. “In other areas of the business, we made progress with the integration of both RedBlack Communications and Stationary Power Services; began to implement our expansion plans for Stationary Power, opening offices in Atlanta and Dallas; and continued to expand automotive telematics batteries into additional model platforms. Based on a strong backlog of orders and firm demand in all areas of our business, we continue to plan for full year revenue of at least $238 million in 2008 while devoting product development and sales resources to creating new opportunities with prime contractors, government entities and commercial customers to drive sustainable profitable growth for the company.”
Outlook
For the second quarter of 2008, the company forecasts revenue in the range of $60 million to $70 million and operating income in the range of $4.5 million to $7.0 million. For the full year 2008, the company forecasts revenue of at least $238 million.
About Ultralife
Ultralife, which began as a battery company, now offers products and services ranging from portable and standby 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.
Ultralife’s family of brands includes: Ultralife Batteries, Stationary Power Services, Reserve Power Systems, ABLE, McDowell Research and RedBlack Communications. Ultralife’s operations are in North America, Europe and Asia. For more information, visit www.ulbi.com.
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: worsening global economic conditions, increased competitive environment and pricing pressures, disruptions related to restructuring actions and delays. 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.
Conference Call Information
Investors are invited to listen to a live webcast of the conference call at 10:00 a.m. ET on May 1, 2008 at http://investor.ultralifebatteries.com. To listen to the live call, please go to the web site at least fifteen minutes early to download and install any necessary audio software. 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 for 90 days. Investors may also listen to a telephone replay of the conference call by dialing 888-203-1112, Reservation 6845119, during the period starting at 1:00 p.m. ET May 1 and ending at 1:00 p.m. ET May 9, 2008.
| ULTRALIFE BATTERIES, INC. | ||||||||
| CONSOLIDATED STATEMENTS OF OPERATIONS | ||||||||
| (In Thousands, Except Per Share Amounts) | ||||||||
| (Unaudited) | ||||||||
| Three-Month Periods Ended | ||||||||
| March 29, | March 31, | |||||||
| 2008 | 2007 | |||||||
| Revenues: | ||||||||
| Non-rechargeable products | $ | 14,616 | $ | 18,158 | ||||
| Rechargeable products | 6,738 | 5,529 | ||||||
| Communications systems | 24,054 | 8,491 | ||||||
| Design and installation services | 4,179 | 142 | ||||||
| Total revenues | 49,587 | 32,320 | ||||||
| Cost of products sold: | ||||||||
| Non-rechargeable products | 11,560 | 13,610 | ||||||
| Rechargeable products | 5,537 | 4,167 | ||||||
| Communications systems | 17,933 | 6,971 | ||||||
| Design and installation services | 3,682 | 71 | ||||||
| Total cost of products sold | 38,712 | 24,819 | ||||||
| Gross margin | 10,875 | 7,501 | ||||||
| Operating expenses: | ||||||||
| Research and development | 1,609 | 1,614 | ||||||
| Selling, general, and administrative | 6,903 | 5,296 | ||||||
| Total operating expenses | 8,512 | 6,910 | ||||||
| Operating income | 2,363 | 591 | ||||||
| Other income (expense): | ||||||||
| Interest income | 11 | 14 | ||||||
| Interest expense | (329 | ) | (657 | ) | ||||
| Gain on insurance settlement | 39 | - | ||||||
| Gain on debt conversion | 313 | - | ||||||
| Miscellaneous | 82 | 16 | ||||||
| Income (loss) before income taxes | 2,479 | (36 | ) | |||||
| Income tax provision (benefit)-current | 54 | - | ||||||
| Income tax provision (benefit)-deferred | (9 | ) | - | |||||
| Total income taxes | 45 | - | ||||||
| Net income (loss) | $ | 2,434 | $ | (36 | ) | |||
| Earnings (loss) per share - basic | $ | 0.14 | $ | (0.00 | ) | |||
| Earnings (loss) per share - diluted | $ | 0.14 | $ | (0.00 | ) | |||
| Weighted average shares outstanding - basic | 17,027 | 15,078 | ||||||
| Weighted average shares outstanding - diluted | 17,479 | 15,078 | ||||||
| ULTRALIFE BATTERIES, INC. | ||||||||
| CONSOLIDATED BALANCE SHEETS | ||||||||
| (In Thousands, Except Per Share Amounts) | ||||||||
| (unaudited) | ||||||||
| March 29, | December 31, | |||||||
| ASSETS | 2008 | 2007 | ||||||
| Current assets: | ||||||||
| Cash and investments | $ | 734 | $ | 2,245 | ||||
| Trade accounts receivable, net | 39,396 | 26,540 | ||||||
| Inventories | 40,225 | 35,098 | ||||||
| Prepaid expenses and other current assets | 2,754 | 4,410 | ||||||
| Total current assets | 83,109 | 68,293 | ||||||
| Property and equipment | 18,855 | 19,365 | ||||||
| Other assets | ||||||||
| Goodwill, intangible and other assets | 33,877 | 34,390 | ||||||
| Total Assets | $ | 135,841 | $ | 122,048 | ||||
| LIABILITIES AND SHAREHOLDERS' EQUITY | ||||||||
| Current liabilities: | ||||||||
| Short-term debt and current portion of long-term debt | $ | 14,319 | $ | 13,423 | ||||
| Accounts payable | 21,226 | 18,326 | ||||||
| Other current liabilities | 15,859 | 10,083 | ||||||
| Total current liabilities | 51,404 | 41,832 | ||||||
| Long-term liabilities: | ||||||||
| Long-term debt and capital lease obligations | 5,235 | 16,224 | ||||||
| Other long-term liabilities | 855 | 985 | ||||||
| Total long-term liabilities | 6,090 | 17,209 | ||||||
| Minority interest in equity of subsidiaries | 11 | - | ||||||
| Shareholders' equity: | ||||||||
| Common stock, par value $0.10 per share | 1,798 | 1,712 | ||||||
| Capital in excess of par value | 164,746 | 152,070 | ||||||
| Accumulated other comprehensive income | 202 | 69 | ||||||
| Accumulated deficit | (86,009 | ) | (88,443 | ) | ||||
| 80,737 | 65,408 | |||||||
| Less -- Treasury stock, at cost | 2,401 | 2,401 | ||||||
| Total shareholders' equity | 78,336 | 63,007 | ||||||
| Total Liabilities and Shareholders' Equity | $ | 135,841 | $ | 122,048 | ||||
CONTACT:
Company:
Ultralife
Robert W. Fishback,
315-332-7100
bfishback@ulbi.com
or
Investor Relations:
Lippert/Heilshorn
& Associates, Inc.
Jody Burfening, 212-838-3777
jburfening@lhai.com