Ultralife Corporation Reports Third Quarter Results

NEWARK, N.Y., Oct. 27, 2016 -- Ultralife Corporation (NASDAQ:ULBI) reported operating income of $1.1 million on revenue of $19.6 million for the third quarter ended September 25, 2016.  For the quarter ended September 27, 2015, the Company reported operating income of $1.2 million on revenue of $19.0 million.

“Successful execution of the strategy to diversify beyond our core U.S. government/defense business while abiding by our business model parameters produced solid third quarter results,” said Michael D. Popielec, President and Chief Executive Officer.  “Although weak economic conditions continued to constrain revenue growth, we delivered operating income for the third quarter that was more than double the second quarter, and profitability for the eighth consecutive quarter.  We also remain poised to achieve profitable growth for 2016.  Finally, we continue to build resources to support investments in organic and inorganic growth opportunities through greater operating leverage and inventory reductions.”   

Third Quarter 2016 Financial Results

Revenue was $19.6 million, an increase of $0.6 million, or 3.1%, compared to $19.0 million for the third quarter of 2015 reflecting the addition of Accutronics and higher Communications Systems sales partially offset by lower core Battery & Energy sales.  Battery & Energy Products sales declined to $14.9 million compared to $16.4 million last year due primarily to lower sales to a large U.S. government/defense OEM and lower 9-Volt sales, partially offset by higher medical sales, the contribution of Accutronics, and a large shipment to a non-U.S. government/defense customer.  Communications Systems sales grew 76.6% to $4.7 million compared to $2.7 million for the same period last year reflecting shipments under the Vehicle Installed Power Enhanced Riflemen Appliqué (“VIPER”) Program.

Gross profit was $6.0 million, or 30.5% of revenue, compared to $5.9 million, or 31.0% of revenue, for the same quarter a year ago.  Battery & Energy Products’ gross margin was 30.3%, compared to 29.1% last year, an increase of 120 basis points reflecting favorable product mix including the contribution of Accutronics.  Communications Systems’ gross margin declined to 31.4% compared to 42.4% for the prior year primarily due to sales mix.       

Operating expenses were $4.9 million compared to $4.7 million last year reflecting the addition of Accutronics, partially offset by certain cost reduction actions along with continued tight control over discretionary spending.  Operating expenses were 24.8% of revenue equal to 24.8% of revenue for the year earlier period.  

Operating income was $1.1 million compared to $1.2 million last year for an operating margin of 5.8% compared to 6.2% last year. 

Net income was $1.0 million, or $0.07 per share, equal to net income of $1.0 million, or $0.07 per share, for the third quarter of 2015.

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 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. 

Company Contact:
Ultralife Corporation
Philip A. Fain 
(315) 210-6110
[email protected]
 
Investor Relations Contact:
LHA 
Jody Burfening
(212) 838-3777
[email protected]