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):
July
29, 2010
ULTRALIFE
CORPORATION
(Exact name of registrant as specified in its
charter)
Delaware
(State or other jurisdiction of
incorporation or organization)
|
0-20852 |
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 Corporation (NASDAQ: ULBI) reported operating income of $0.4 million on revenue of $37.0 million for the quarter ended June 27, 2010. For the second quarter of 2009, the company reported an operating loss of $6.3 million on revenue of $39.6 million.
Gross margin for the second quarter of 2010 was $9.4 million, or 25.4% of revenue, compared to $6.8 million, or 17.1% of revenue, for the same quarter a year ago, reflecting manufacturing efficiencies and higher selling prices in the company’s Battery & Energy Products segment, a favorable mix of high-margin Communications Systems revenue and the impact of higher Energy Services revenue. Included in gross margin for the second quarter last year was a $1.8 million increase in the inventory reserve.
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
July 29, 2010.
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.
|
ULTRALIFE CORPORATION |
||||
|
Dated: |
July 29, 2010 |
By: |
|
/s/ Philip A. Fain |
|
|
Philip A. Fain |
|||
|
|
Chief Financial Officer & Treasurer |
|||
INDEX TO EXHIBITS
(99) Additional Exhibits
99.1 Press
Release dated July 29, 2010.
Exhibit 99.1
Ultralife Corporation Reports Second Quarter Results
NEWARK, N.Y.--(BUSINESS WIRE)--July 29, 2010--Ultralife Corporation (NASDAQ: ULBI) reported operating income of $0.4 million on revenue of $37.0 million for the quarter ended June 27, 2010. For the second quarter of 2009, the company reported an operating loss of $6.3 million on revenue of $39.6 million.
Gross margin for the second quarter of 2010 was $9.4 million, or 25.4% of revenue, compared to $6.8 million, or 17.1% of revenue, for the same quarter a year ago, reflecting manufacturing efficiencies and higher selling prices in the company’s Battery & Energy Products segment, a favorable mix of high-margin Communications Systems revenue and the impact of higher Energy Services revenue. Included in gross margin for the second quarter last year was a $1.8 million increase in the inventory reserve.
Operating expenses for the second quarter of 2010 totaled $9.0 million compared to $13.1 million a year ago. Net income for the second quarter of 2010 was $0.02 million, or $0.00 per share, compared to a net loss of $7.0 million, or $0.41 per share, for the same quarter in 2009. Included in operating expenses for the second quarter last year were $1.2 million of non-recurring severance and legal expenses.
For the six-month period ended June 27, 2010, revenue was $75.5 million compared to $79.4 million for the same period a year ago. Operating income amounted to $1.3 million compared to an operating loss of $8.6 million for the first half of 2009. Net income for the first half of 2010 was $0.3 million, or $0.02 per share, compared to a net loss of $9.5 million, or $0.56 per share, for the same period a year ago.
“Manufacturing process improvements and rigorous operating expense control sustained operating profitability for the second quarter even though sales of batteries to the U.S. Department of Defense were lighter than the first quarter of 2010 and shipments of SATCOM-on-the-Move systems commenced in the third quarter,” said John D. Kavazanjian, Ultralife’s president and chief executive officer.
“As we move into the second half of 2010, we are on track to complete deliveries of SATCOM systems in the fourth quarter. Order flow for advanced batteries and communications systems with greater engineered content is picking up, although we still do not have visibility for orders of batteries to the U.S. Department of Defense,” added Kavazanjian. “Having lowered the cost basis of our business and successfully increased the weight of higher-margin products, we are well positioned to deliver strong incremental returns on the higher revenue anticipated for the second half of the year. On the strength of our profitable business model and improved working capital management, we also have within our sight a return to a net positive cash position.”
Outlook
The company’s current 2010 forecast calls for the company to generate revenue in the range of $177 million to $182 million and operating income of approximately $7.0 million. Excluded from this forecast is any revenue associated with orders for batteries from the U.S. Department of Defense. Management cautions that the timing of orders and shipments may cause some variability in quarterly results.
About Ultralife Corporation
Ultralife Corporation, which began as a battery company, serves its markets with 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.
Headquartered in Newark, New York, the company’s business segments include: Battery & Energy Products, Communications Systems and Energy Services. Ultralife has operations in North America, Europe and Asia. For more information, visit www.ultralifecorp.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, and the possibility of intangible asset impairment charges that may be taken should management decide to retire one or more of the brands of acquired companies. 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.
Conference Call Information
Ultralife will hold its second quarter earnings conference call today at 10:00 AM ET. To participate, please call (800) 915-4836, identify yourself and ask for the Ultralife call. The conference call will also be broadcast live over the Internet at http://investor.ultralifecorp.com. To listen to the 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 webcast, a replay of the webcast will be available shortly after the call at the same location.
| ULTRALIFE CORPORATION | |||||||||||||||||||
| CONSOLIDATED STATEMENTS OF OPERATIONS | |||||||||||||||||||
| (In Thousands, Except Per Share Amounts) | |||||||||||||||||||
| (Unaudited) | |||||||||||||||||||
| Three-Month Periods Ended | Six-Month Periods Ended | ||||||||||||||||||
| June 27, | June 28, | June 27, | June 28, | ||||||||||||||||
|
2010 |
2009 |
2010 |
2009 |
||||||||||||||||
| Revenues: | |||||||||||||||||||
| Battery & energy products | $ | 22,405 | $ | 25,634 | $ | 45,808 | $ | 48,626 | |||||||||||
| Communications systems | 11,242 | 10,357 | 24,308 | 21,622 | |||||||||||||||
| Energy services | 3,377 | 3,602 | 5,415 | 9,148 | |||||||||||||||
| Total revenues | 37,024 | 39,593 | 75,531 | 79,396 | |||||||||||||||
| Cost of products sold: | |||||||||||||||||||
| Battery & energy products | 17,340 | 21,338 | 35,807 | 40,530 | |||||||||||||||
| Communications systems | 7,301 | 8,036 | 15,464 | 15,685 | |||||||||||||||
| Energy services | 2,963 | 3,439 | 5,082 | 8,620 | |||||||||||||||
| Total cost of products sold | 27,604 | 32,813 | 56,353 | 64,835 | |||||||||||||||
| Gross margin | 9,420 | 6,780 | 19,178 | 14,561 | |||||||||||||||
| Operating expenses: | |||||||||||||||||||
| Research and development | 1,903 | 2,514 | 3,631 | 4,494 | |||||||||||||||
| Selling, general, and administrative | 7,106 | 10,591 | 14,282 | 18,649 | |||||||||||||||
| Total operating expenses | 9,009 | 13,105 | 17,913 | 23,143 | |||||||||||||||
| Operating income (loss) | 411 | (6,325 | ) | 1,265 | (8,582 | ) | |||||||||||||
| Other income (expense): | |||||||||||||||||||
| Interest income | (1 | ) | 1 | 2 | 4 | ||||||||||||||
| Interest expense | (222 | ) | (350 | ) | (719 | ) | (532 | ) | |||||||||||
| Miscellaneous | (120 | ) | (209 | ) | (79 | ) | (198 | ) | |||||||||||
| Income (loss) before income taxes | 68 | (6,883 | ) | 469 | (9,308 | ) | |||||||||||||
| Income tax provision-current | 10 | - | 34 | 2 | |||||||||||||||
| Income tax provision-deferred | 41 | 95 | 122 | 184 | |||||||||||||||
| Total income taxes | 51 | 95 | 156 | 186 | |||||||||||||||
| Net income (loss) | 17 | (6,978 | ) | 313 | (9,494 | ) | |||||||||||||
| Net (income) loss attributable to noncontrolling interest | 3 | 14 | (6 | ) | 18 | ||||||||||||||
| Net income (loss) attributable to Ultralife | $ | 20 | $ | (6,964 | ) | $ | 307 | $ | (9,476 | ) | |||||||||
| Net income (loss) attributable to Ultralife common shareholders - basic | $ | 0.00 | $ | (0.41 | ) | $ | 0.02 | $ | (0.56 | ) | |||||||||
| Net income (loss) attributable to Ultralife common shareholders - diluted | $ | 0.00 | $ | (0.41 | ) | $ | 0.02 | $ | (0.56 | ) | |||||||||
| Weighted average shares outstanding - basic | 17,164 | 16,894 | 17,089 | 17,024 | |||||||||||||||
| Weighted average shares outstanding - diluted | 17,169 | 16,894 | 17,094 | 17,024 | |||||||||||||||
| ULTRALIFE CORPORATION | ||||||||||||||
| CONSOLIDATED BALANCE SHEETS | ||||||||||||||
| (In Thousands, Except Per Share Amounts) | ||||||||||||||
| (unaudited) | ||||||||||||||
| June 27, | December 31, | |||||||||||||
| ASSETS |
2010 |
2009 |
||||||||||||
| Current assets: | ||||||||||||||
| Cash and cash equivalents | $ | 2,563 | $ | 6,094 | ||||||||||
| Trade accounts receivable, net | 27,895 | 32,449 | ||||||||||||
| Inventories | 38,607 | 35,503 | ||||||||||||
| Prepaid expenses and other current assets | 1,919 | 1,912 | ||||||||||||
| Total current assets | 70,984 | 75,958 | ||||||||||||
| Property and equipment | 15,361 | 16,648 | ||||||||||||
| Other assets | ||||||||||||||
| Goodwill, intangible and other assets | 38,740 | 38,560 | ||||||||||||
| Total Assets | $ | 125,085 | $ | 131,166 | ||||||||||
| LIABILITIES AND SHAREHOLDERS' EQUITY | ||||||||||||||
| Current liabilities: | ||||||||||||||
| Short-term debt and current portion of long-term debt | $ | 12,729 | $ | 19,082 | ||||||||||
| Accounts payable | 18,181 | 19,177 | ||||||||||||
| Other current liabilities | 9,613 | 9,875 | ||||||||||||
| Total current liabilities | 40,523 | 48,134 | ||||||||||||
| Long-term liabilities: | ||||||||||||||
| Long-term debt and capital lease obligations | 297 | 267 | ||||||||||||
| Other long-term liabilities | 4,766 | 4,651 | ||||||||||||
| Total long-term liabilities | 5,063 | 4,918 | ||||||||||||
| Shareholders' equity: | ||||||||||||||
| Ultralife equity: | ||||||||||||||
| Common stock, par value $0.10 per share | 1,861 | 1,831 | ||||||||||||
| Capital in excess of par value | 170,449 | 169,064 | ||||||||||||
| Accumulated other comprehensive loss | (1,505) | (1,256) | ||||||||||||
| Accumulated deficit | (83,714) | (84,021) | ||||||||||||
| 87,091 | 85,618 | |||||||||||||
| Less -- Treasury stock, at cost | 7,652 | 7,558 | ||||||||||||
| Total Ultralife equity | 79,439 | 78,060 | ||||||||||||
| Noncontrolling interest | 60 | 54 | ||||||||||||
| Total shareholders' equity | 79,499 | 78,114 | ||||||||||||
| Total Liabilities and Shareholders' Equity | $ | 125,085 | $ | 131,166 | ||||||||||
CONTACT:
Company:
Ultralife Corporation
Philip
Fain, 315-332-7100
pfain@ulbi.com
or
Investor
Relations:
Lippert/Heilshorn & Associates
Jody
Burfening, 212-838-3777
jburfening@lhai.com