NEWARK, N.Y., Oct. 27, 2016 (GLOBE NEWSWIRE) -- 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. 
 
ULTRALIFE CORPORATION AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS (Dollars in Thousands)
(Unaudited)
       
  ASSETS
  September 25,   December 31,  
    2016       2015    
Current Assets:        
Cash and Cash Equivalents $ 6,732     $ 14,533    
Trade Accounts Receivable, Net   12,888       11,430    
Inventories   24,877       23,814    
Prepaid Expenses and Other Current Assets   2,692       2,169    
Total Current Assets   47,189       51,946    
         
Property, Equipment and Improvements, Net   8,551       9,038    
Goodwill, Intangibles and Other Assets   27,817       20,538    
Total Assets $ 83,557     $ 81,522    
                         
LIABILITIES AND SHAREHOLDERS' EQUITY
Current Liabilities:      
Accounts Payable $ 6,323     $ 6,494    
Accrued Compensation and Related Benefits   1,264       2,377    
Accrued Expenses and Other Current Liabilities   3,889       1,976    
Current Portion of Debt   -       -    
Total Current Liabilities   11,476       10,847    
Deferred Income Taxes and Other Non-Current Liabilities   5,528       4,659    
Total Liabilities   17,004       15,506    
         
Shareholders' Equity:        
Common Stock   1,925       1,918    
Capital in Excess of Par Value   177,737       177,007    
Accumulated Deficit   (92,287 )     (94,051 )  
Accumulated Other Comprehensive Loss   (2,221 )     (907 )  
Treasury Stock   (18,433 )     (17,808 )  
Total Ultralife Equity   66,721       66,159    
Non-Controlling Interest   (168 )     (143 )  
Total Shareholders' Equity   66,553       66,016    
         
Total Liabilities and Shareholders' Equity $ 83,557     $ 81,522    
                 

ULTRALIFE CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME
(In Thousands Except Per Share Amounts)
(Unaudited)
               
  Three Month Periods Ended   Nine Month Periods Ended
  September 25,   September 27,   September 25,   September  27,
    2016       2015       2016       2015  
Revenues:              
Battery & Energy Products $ 14,943     $ 16,390     $ 47,142     $ 48,638  
Communication Systems   4,688       2,654       13,693       8,538  
Total Revenues   19,631       19,044       60,835       57,176  
               
Cost of Products Sold:              
Battery & Energy Products   10,420       11,616       32,738       34,538  
Communication Systems   3,214       1,528       9,795       4,872  
Total Cost of Products Sold   13,634       13,144       42,533       39,410  
               
Gross Profit   5,997       5,900       18,302       17,766  
               
Operating Expenses:              
Research and Development   1,357       1,224       4,438       3,917  
Selling, General and Administrative   3,502       3,503       11,745       11,037  
Total Operating Expenses   4,859       4,727       16,183       14,954  
               
Operating Income   1,138       1,173       2,119       2,812  
               
Other Income (Expense)   (30 )     5       (167 )     (156 )
                               
Income Before Income Taxes   1,108       1,178       1,952       2,656  
               
Income Tax Provision   92       130       213       312  
               
Net Income   1,016       1,048       1,739       2,344  
               
Net Loss (Income) Attributable to Non-Controlling Interest   3       (1 )     25       23  
               
Net Income Attributable to Ultralife Corporation $ 1,019     $ 1,047     $ 1,764     $ 2,367  
                               
                               
Net Income Per Share Attributable to Ultralife Common Shareholders - Basic $ .07     $ .07     $ .12     $ .14  
                               
Net Income Per Share Attributable to Ultralife Common Shareholders - Diluted $ .07     $ .07     $ .11     $ .14  
               
Weighted Average Shares Outstanding - Basic   15,207       15,633       15,262       16,503  
               
Weighted Average Shares Outstanding - Diluted   15,298       15,740       15,446       16,550  
                               

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

Primary Logo