This Day On The Street
Continue to site
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Ultralife To Exit Energy Services Business

Ultralife Corporation (NASDAQ: ULBI) announced today that it will exit and close its Energy Services business. For the past two years, cautious spending and continued delays in implementing large capital projects by customers in the lead acid standby power industry have negatively impacted results for the company’s Energy Services segment.

In the fourth quarter of 2010, the company recorded a non-cash impairment charge of $13.8 million to write-off the goodwill and intangible assets and certain fixed assets associated with its Energy Services business. Since 2008, this business has incurred significant operating losses.

In connection with exiting its Energy Services business, the company expects to incur closing costs of approximately $3.2 million of which approximately $1.2 million will be recorded in the first quarter of 2011. The cash component of the closing costs is approximately $2.2 million and is expected to be offset by cash received from accounts receivables and liquidated assets. The company expects to complete the exit by the end of the third quarter. Once completed, the Energy Services segment will be reclassified as a discontinued operation.

“Since joining Ultralife two months ago, I have been conducting reviews of each business segment and the products in our portfolio with a view toward assessing their contribution to the company’s long-term sustainable growth and quality of earnings. As part of this exercise, we have examined the growth and profitability potential of the Energy Services business, taking into consideration its sizeable operating losses over the last several years and the time and resources required to achieve hurdle rate profitability levels going forward,” said Michael D. Popielec, Ultralife’s president and chief executive officer.

“By exiting the Energy Services business, we will be able to focus our resources on profitable growth opportunities, and expand our presence in commercial markets and internationally. This includes the development of new lithium ion storage technologies for renewable energy applications as well as for the transition from lead acid to lithium ion products in the standby power industry,” said Popielec.

1 of 3

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
SYM TRADE IT LAST %CHG

Markets

DOW 18,080.14 +21.45 0.12%
S&P 500 2,117.69 +4.76 0.23%
NASDAQ 5,092.0850 +36.0220 0.71%

Partners Compare Online Brokers

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs