NEWARK, N.Y., April 28, 2016 (GLOBE NEWSWIRE) -- Ultralife Corporation (NASDAQ:ULBI) reported operating income of $0.5 million on revenue of $20.8 million for the first quarter ended March 27, 2016.  For the first quarter of 2015, the Company reported operating income of $0.8 million on revenue of $19.2 million.  Included in results for the first quarter of 2016 is $0.3 million of non-recurring costs and purchase accounting adjustments related to the acquisition of Accutronics Ltd., which the Company completed on January 13, 2016.   

"During the first quarter, we achieved bottom-line profitability for the sixth consecutive quarter while absorbing direct costs and customary accounting adjustments related to the acquisition of Accutronics, and start-up costs associated with the Vehicle Installed Power Enhanced Riflemen Appliqué  ("VIPER") Program.  Although our year-over-year revenue comparison was impacted by variability in the timing of order fulfillment, we held to our business model parameters, generating gross margin of 30.7%, continued to invest in new product development and further extended our pipeline for orders from both government/defense and commercial customers," said Michael D. Popielec.  "As a result, we remain well positioned to deliver profitable growth in 2016 now boosted by our acquisition of Accutronics."

First Quarter 2016 Financial Results

Revenue was $20.8 million, an increase of $1.7 million, or 9%, compared to $19.2 million for the first quarter of 2015 reflecting the addition of Accutronics and higher Communications Systems sales.  Battery & Energy Products sales were $16.4 million compared to $16.3 million last year, reflecting the contribution of $2.5 million of Accutronics sales which offset the revenue from a large 9-Volt and a large charger order in the first quarter of 2015.  Communications Systems sales grew 51% to $4.4 million compared to $2.9 million for the same period last year as a result of shipments under the VIPER Program.

Gross profit was $6.4 million, or 30.7% of revenue, compared to $6.0 million, or 31.3% of revenue, for the same quarter a year ago.  Battery & Energy Products' gross margin was 31.7%, compared to 29.4% last year, an increase of 230 basis points reflecting favorable product mix.  Included in Battery & Energy Products' gross margin was a negative 55 basis point impact of purchase accounting adjustments related to the acquisition of Accutronics.   Communications Systems' gross margin declined to 27.0% compared to 42.2% for the prior year primarily due to sales mix.        

Operating expenses were $5.9 million compared to $5.2 million last year reflecting the addition of Accutronics and increased spending on new product development in response to a higher level of proposal activity, partially offset by tight control over discretionary spending.  Included in operating expenses was $0.2 million of non-recurring expenses related to the acquisition of Accutronics.  Operating expenses were 28.4% of revenue compared to 27.0% of revenue for the year earlier period.  

Operating income was $0.5 million compared to $0.8 million last year.  Operating income for the 2016 period includes purchase accounting adjustments and one-time expenses related to the acquisition of Accutronics of $0.3 million equivalent to $0.02 per share.  Including these non-recurring adjustments and expenses, net income was $0.3 million, or $0.02 per share, compared to $0.5 million, or $0.03 per share, for the first 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 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 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. 
 
ULTRALIFE CORPORATION AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS (Dollars in Thousands)
(Unaudited)
       
  ASSETS
  March 27,   December 31,  
    2016       2015    
Current Assets:        
Cash and Cash Equivalents $ 2,902     $ 14,533    
Trade Accounts Receivable, Net   15,140       11,430    
Inventories   26,980       23,814    
Prepaid Expenses and Other Current Assets   2,603       2,169    
Total Current Assets   47,625       51,946    
         
Property, Equipment and Improvements, Net   8,865       9,038    
Goodwill, Intangibles and Other Assets   29,153       20,538    
Total Assets $ 85,643     $ 81,522    
         
  LIABILITIES AND SHAREHOLDERS' EQUITY
Current Liabilities:      
Accounts Payable $ 8,018     $ 6,494    
Accrued Compensation and Related Benefits   1,928       2,377    
Accrued Expenses and Other Current Liabilities   2,786       1,976    
Current Portion of Debt   1,156       -    
Total Current Liabilities   13,888       10,847    
Deferred Income Taxes and Other Non-Current Liabilities   5,541       4,659    
Total Liabilities   19,429       15,506    
         
Shareholders' Equity:        
Common Stock   1,919       1,918    
Capital in Excess of Par Value   177,202       177,007    
Accumulated Deficit   (93,752 )     (94,051 )  
Accumulated Other Comprehensive Loss   (1,186 )     (907 )  
Treasury Stock   (17,808 )     (17,808 )  
Total Ultralife Equity   66,375       66,159    
Non-Controlling Interest   (161 )     (143 )  
Total Shareholders' Equity   66,214       66,016    
         
Total Liabilities and Shareholders' Equity $ 85,643     $ 81,522    
                 

 
 
ULTRALIFE CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME  (In Thousands Except Per Share Amounts)
(Unaudited)
  Three Month Periods Ended
  March 27,   March 29,
    2016       2015  
Revenues:      
Battery & Energy Products $ 16,440     $ 16,276  
Communications Systems   4,393       2,901  
Total Revenues   20,833       19,177  
       
Cost of Products Sold:      
Battery & Energy Products   11,223       11,492  
Communications Systems   3,205       1,678  
Total Cost of Products Sold   14,428       13,170  
       
Gross Profit   6,405       6,007  
       
Operating Expenses:      
Research and Development   1,656       1,359  
Selling, General and Administrative   4,267       3,826  
Total Operating Expenses   5,923       5,185  
       
Operating Income   482       822  
       
Other Expense   (113 )     (188 )
Income before Income Taxes   369       634  
       
Income Tax Provision   (88 )     (111 )
       
       
Net Income   281       523  
       
Net Loss Attributable to Non-Controlling Interest   18       10  
       
Net Income Attributable to Ultralife Corporation $ 299     $ 533  
       
Net Income Per Share Attributable to Ultralife Common Shareholders  - Basic          
  $ 0.02     $ 0.03  
                       
Net Income Per Share Attributable to Ultralife Common Shareholders - Diluted          
  $ 0.02     $ 0.03  
       
Weighted Average Shares Outstanding - Basic   15,323       17,346  
Weighted Average Shares Outstanding - Diluted   15,666       17,354  
                       

 
Company Contact:Ultralife CorporationPhilip A. Fain(315) 210-6110pfain@ulbi.comInvestor Relations Contact:LHAJody Burfening(212) 838-3777jburfening@lhai.com

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