Published: July 29, 2010
Ultralife Corporation Reports Second Quarter Results
NEWARK, N.Y. - (BUSINESS WIRE) - Ultralife Corporation (NASDAQ: ULBI) reported operating income of
$0.4 million on revenue of $37.0 million for the quarter ended June 27,
2010. For the second quarter of 2009, the company reported an operating
loss of $6.3 million on revenue of $39.6 million.
Gross margin for the second quarter of 2010 was $9.4 million, or 25.4%
of revenue, compared to $6.8 million, or 17.1% of revenue, for the same
quarter a year ago, reflecting manufacturing efficiencies and higher
selling prices in the company's Battery & Energy Products segment, a
favorable mix of high-margin Communications Systems revenue and the
impact of higher Energy Services revenue. Included in gross margin for
the second quarter last year was a $1.8 million increase in the
inventory reserve.
Operating expenses for the second quarter of 2010 totaled $9.0 million
compared to $13.1 million a year ago. Net income for the second quarter
of 2010 was $0.02 million, or $0.00 per share, compared to a net loss of
$7.0 million, or $0.41 per share, for the same quarter in 2009. Included
in operating expenses for the second quarter last year were $1.2 million
of non-recurring severance and legal expenses.
For the six-month period ended June 27, 2010, revenue was $75.5 million
compared to $79.4 million for the same period a year ago. Operating
income amounted to $1.3 million compared to an operating loss of $8.6
million for the first half of 2009. Net income for the first half of
2010 was $0.3 million, or $0.02 per share, compared to a net loss of
$9.5 million, or $0.56 per share, for the same period a year ago.
"Manufacturing process improvements and rigorous operating expense
control sustained operating profitability for the second quarter even
though sales of batteries to the U.S. Department of Defense were lighter
than the first quarter of 2010 and shipments of SATCOM-on-the-Move
systems commenced in the third quarter," said John D. Kavazanjian,
Ultralife's president and chief executive officer.
"As we move into the second half of 2010, we are on track to complete
deliveries of SATCOM systems in the fourth quarter. Order flow for
advanced batteries and communications systems with greater engineered
content is picking up, although we still do not have visibility for
orders of batteries to the U.S. Department of Defense," added
Kavazanjian. "Having lowered the cost basis of our business and
successfully increased the weight of higher-margin products, we are well
positioned to deliver strong incremental returns on the higher revenue
anticipated for the second half of the year. On the strength of our
profitable business model and improved working capital management, we
also have within our sight a return to a net positive cash position."
Outlook
The company's current 2010 forecast calls for the company to generate
revenue in the range of $177 million to $182 million and operating
income of approximately $7.0 million. Excluded from this forecast is any
revenue associated with orders for batteries from the U.S. Department of
Defense. Management cautions that the timing of orders and shipments may
cause some variability in quarterly results.
About Ultralife Corporation
Ultralife Corporation, which began as a battery company, serves its
markets with products and services ranging from portable and standby
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, Communications Systems and Energy
Services. Ultralife has operations in North America, Europe and Asia.
For more information, visit www.ultralifecorp.com.
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: worsening global economic conditions,
increased competitive environment and pricing pressures, and the
possibility of intangible asset impairment charges that may be taken
should management decide to retire one or more of the brands of acquired
companies. 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.
Conference Call Information
Ultralife will hold its second quarter earnings conference call today at
10:00 AM ET. To participate, please call (800) 915-4836, identify
yourself and ask for the Ultralife call. The conference call will also
be broadcast live over the Internet at http://investor.ultralifecorp.com.
To listen to the call, please go to the web site at least fifteen
minutes early to download and install any necessary audio software. For
those who cannot listen to the live webcast, a replay of the webcast
will be available shortly after the call at the same location.
|
|
|
ULTRALIFE CORPORATION
|
|
CONSOLIDATED STATEMENTS OF OPERATIONS
|
|
(In Thousands, Except Per Share Amounts)
|
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three-Month Periods Ended
|
|
|
|
Six-Month Periods Ended
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
June 27,
|
|
June 28,
|
|
|
|
June 27,
|
|
June 28,
|
|
|
|
|
2010
|
|
2009
|
|
|
|
2010
|
|
2009
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenues:
|
|
|
|
|
|
|
|
|
|
|
|
|
Battery & energy products
|
|
|
$
|
22,405
|
|
|
$
|
25,634
|
|
|
|
|
$
|
45,808
|
|
|
$
|
48,626
|
|
|
Communications systems
|
|
|
|
11,242
|
|
|
|
10,357
|
|
|
|
|
|
24,308
|
|
|
|
21,622
|
|
|
Energy services
|
|
|
|
3,377
|
|
|
|
3,602
|
|
|
|
|
|
5,415
|
|
|
|
9,148
|
|
|
Total revenues
|
|
|
|
37,024
|
|
|
|
39,593
|
|
|
|
|
|
75,531
|
|
|
|
79,396
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of products sold:
|
|
|
|
|
|
|
|
|
|
|
|
|
Battery & energy products
|
|
|
|
17,340
|
|
|
|
21,338
|
|
|
|
|
|
35,807
|
|
|
|
40,530
|
|
|
Communications systems
|
|
|
|
7,301
|
|
|
|
8,036
|
|
|
|
|
|
15,464
|
|
|
|
15,685
|
|
|
Energy services
|
|
|
|
2,963
|
|
|
|
3,439
|
|
|
|
|
|
5,082
|
|
|
|
8,620
|
|
|
Total cost of products sold
|
|
|
|
27,604
|
|
|
|
32,813
|
|
|
|
|
|
56,353
|
|
|
|
64,835
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross margin
|
|
|
|
9,420
|
|
|
|
6,780
|
|
|
|
|
|
19,178
|
|
|
|
14,561
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating expenses:
|
|
|
|
|
|
|
|
|
|
|
|
|
Research and development
|
|
|
|
1,903
|
|
|
|
2,514
|
|
|
|
|
|
3,631
|
|
|
|
4,494
|
|
|
Selling, general, and administrative
|
|
|
|
7,106
|
|
|
|
10,591
|
|
|
|
|
|
14,282
|
|
|
|
18,649
|
|
|
Total operating expenses
|
|
|
|
9,009
|
|
|
|
13,105
|
|
|
|
|
|
17,913
|
|
|
|
23,143
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating income (loss)
|
|
|
|
411
|
|
|
|
(6,325
|
)
|
|
|
|
|
1,265
|
|
|
|
(8,582
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other income (expense):
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest income
|
|
|
|
(1
|
)
|
|
|
1
|
|
|
|
|
|
2
|
|
|
|
4
|
|
|
Interest expense
|
|
|
|
(222
|
)
|
|
|
(350
|
)
|
|
|
|
|
(719
|
)
|
|
|
(532
|
)
|
|
Miscellaneous
|
|
|
|
(120
|
)
|
|
|
(209
|
)
|
|
|
|
|
(79
|
)
|
|
|
(198
|
)
|
|
Income (loss) before income taxes
|
|
|
|
68
|
|
|
|
(6,883
|
)
|
|
|
|
|
469
|
|
|
|
(9,308
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income tax provision-current
|
|
|
|
10
|
|
|
|
-
|
|
|
|
|
|
34
|
|
|
|
2
|
|
|
Income tax provision-deferred
|
|
|
|
41
|
|
|
|
95
|
|
|
|
|
|
122
|
|
|
|
184
|
|
|
Total income taxes
|
|
|
|
51
|
|
|
|
95
|
|
|
|
|
|
156
|
|
|
|
186
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income (loss)
|
|
|
|
17
|
|
|
|
(6,978
|
)
|
|
|
|
|
313
|
|
|
|
(9,494
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net (income) loss attributable to noncontrolling interest
|
|
|
|
3
|
|
|
|
14
|
|
|
|
|
|
(6
|
)
|
|
|
18
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income (loss) attributable to Ultralife
|
|
|
$
|
20
|
|
|
$
|
(6,964
|
)
|
|
|
|
$
|
307
|
|
|
$
|
(9,476
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income (loss) attributable to Ultralife common shareholders -
basic
|
|
|
$
|
0.00
|
|
|
$
|
(0.41
|
)
|
|
|
|
$
|
0.02
|
|
|
$
|
(0.56
|
)
|
|
Net income (loss) attributable to Ultralife common shareholders -
diluted
|
|
|
$
|
0.00
|
|
|
$
|
(0.41
|
)
|
|
|
|
$
|
0.02
|
|
|
$
|
(0.56
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average shares outstanding - basic
|
|
|
|
17,164
|
|
|
|
16,894
|
|
|
|
|
|
17,089
|
|
|
|
17,024
|
|
|
Weighted average shares outstanding - diluted
|
|
|
|
17,169
|
|
|
|
16,894
|
|
|
|
|
|
17,094
|
|
|
|
17,024
|
|
|
|
|
ULTRALIFE CORPORATION
|
|
CONSOLIDATED BALANCE SHEETS
|
|
(In Thousands, Except Per Share Amounts)
|
|
(unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
June 27,
|
|
|
|
December 31,
|
|
ASSETS
|
|
|
|
|
|
|
|
2010
|
|
|
|
2009
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Current assets:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash and cash equivalents
|
|
|
|
|
|
|
|
$
|
2,563
|
|
|
|
$
|
6,094
|
|
Trade accounts receivable, net
|
|
|
|
|
|
|
|
|
27,895
|
|
|
|
|
32,449
|
|
Inventories
|
|
|
|
|
|
|
|
|
38,607
|
|
|
|
|
35,503
|
|
Prepaid expenses and other current assets
|
|
|
|
|
|
|
|
|
1,919
|
|
|
|
|
1,912
|
|
Total current assets
|
|
|
|
|
|
|
|
|
70,984
|
|
|
|
|
75,958
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Property and equipment
|
|
|
|
|
|
|
|
|
15,361
|
|
|
|
|
16,648
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other assets
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Goodwill, intangible and other assets
|
|
|
|
|
|
|
|
|
38,740
|
|
|
|
|
38,560
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Assets
|
|
|
|
|
|
|
|
$
|
125,085
|
|
|
|
$
|
131,166
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LIABILITIES AND SHAREHOLDERS' EQUITY
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Current liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Short-term debt and current portion of long-term debt
|
|
|
|
|
|
|
|
$
|
12,729
|
|
|
|
$
|
19,082
|
|
Accounts payable
|
|
|
|
|
|
|
|
|
18,181
|
|
|
|
|
19,177
|
|
Other current liabilities
|
|
|
|
|
|
|
|
|
9,613
|
|
|
|
|
9,875
|
|
Total current liabilities
|
|
|
|
|
|
|
|
|
40,523
|
|
|
|
|
48,134
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Long-term liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Long-term debt and capital lease obligations
|
|
|
|
|
|
|
|
|
297
|
|
|
|
|
267
|
|
Other long-term liabilities
|
|
|
|
|
|
|
|
|
4,766
|
|
|
|
|
4,651
|
|
Total long-term liabilities
|
|
|
|
|
|
|
|
|
5,063
|
|
|
|
|
4,918
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Shareholders' equity:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Ultralife equity:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Common stock, par value $0.10 per share
|
|
|
|
|
|
|
|
|
1,861
|
|
|
|
|
1,831
|
|
Capital in excess of par value
|
|
|
|
|
|
|
|
|
170,449
|
|
|
|
|
169,064
|
|
Accumulated other comprehensive loss
|
|
|
|
|
|
|
|
|
(1,505)
|
|
|
|
|
(1,256)
|
|
Accumulated deficit
|
|
|
|
|
|
|
|
|
(83,714)
|
|
|
|
|
(84,021)
|
|
|
|
|
|
|
|
|
|
|
87,091
|
|
|
|
|
85,618
|
|
Less -- Treasury stock, at cost
|
|
|
|
|
|
|
|
|
7,652
|
|
|
|
|
7,558
|
|
Total Ultralife equity
|
|
|
|
|
|
|
|
|
79,439
|
|
|
|
|
78,060
|
|
Noncontrolling interest
|
|
|
|
|
|
|
|
|
60
|
|
|
|
|
54
|
|
Total shareholders' equity
|
|
|
|
|
|
|
|
|
79,499
|
|
|
|
|
78,114
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Liabilities and Shareholders' Equity
|
|
|
|
|
|
|
|
$
|
125,085
|
|
|
|
$
|
131,166
|
Company:
Ultralife Corporation
Philip
Fain, 315-332-7100
pfain@ulbi.com
or
Investor
Relations:
Lippert/Heilshorn &
Associates
Jody Burfening, 212-838-3777
jburfening@lhai.com
Copyright © 2012, Business Wire, Inc., All rights reserved. Copyright © 2012, NewsBlaze, Daily News
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