Ultralife Corporation Reports First Quarter Results

NEWARK, N.Y., May 03, 2018 -- Ultralife Corporation (NASDAQ:ULBI) reported operating income of $2.4 million on revenue of $23.1 million for the first quarter ended April 1, 2018.  For the first quarter of 2017, the Company reported operating income of $1.8 million on revenue of $22.0 million. 

“Our first quarter results demonstrate the leveraged earnings power of our business model and the diversity of new revenue opportunities we have been cultivating,” said Michael D. Popielec, President and Chief Executive Officer.   “Total Company government/defense sales grew 6% driven by strong Communications Systems shipments and total Company commercial sales grew 3% driven by higher medical sales.  On the strength of 5% revenue growth, solid gross margins and disciplined expense control, operating profit grew 28% generating a 10.2% operating margin.  A strong start to the year, backlog, and strict adherence to our business model parameters give us confidence that we will deliver another year of profitable growth.”    

First Quarter 2018 Financial Results

Revenue was $23.1 million, an increase of $1.0 million, or 4.7%, compared to $22.0 million for the first quarter of 2017 reflecting higher medical and government/defense sales.  Battery & Energy Products sales decreased $.3 million, or 1.5%, to $17.2 million compared to $17.5 million last year due primarily to timing differences in government/defense shipments, not fully offset by an 18.9% increase in medical sales.  Communications Systems grew 28.3% to $5.8 million compared to $4.6 million for the same period last year reflecting shipments of our Vehicle Amplifier Adapters for the U.S. Army’s Special Force Assistance Brigades under a contract awarded in December 2017, power supplies shipments to a large global defense prime contractor, as well as a 49% year-over-year increase in shipments of core products such as our 20-watt amplifiers and universal vehicle adapters. 

Gross profit was $7.3 million, or 31.6% of revenue, compared to $6.9 million, or 31.3% of revenue, for the same quarter a year ago.  Battery & Energy Products’ gross margin was 29.2%, compared to 28.2% last year, and Communications Systems’ gross margin was 38.4%, compared to 43.0% last year, primarily due to product mix.

Operating expenses were $4.9 million compared to $5.0 million last year reflecting continued tight control over discretionary spending.  Operating expenses were 21.4% of revenue compared to 22.9% of revenue for the year-earlier period.

Operating income was $2.4 million compared to $1.8 million last year for an operating margin of 10.2% compared to 8.4% last year. 

Net income was $2.2 million, or $0.14 per share, compared to net income of $1.7 million, or $0.11 per share, for the first quarter of 2017.  

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.ultralifecorporation.com.

Conference Call Information

Ultralife will hold its first 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.