Ultralife reports Q1 loss on 27 percent revenue decline

NEWARK, N.Y. — Ultralife Corp. (NASDAQ: ULBI), a Wayne County–based maker of batteries and communications systems, reported an operating loss from continuing operations of $1.1 million in the first quarter, compared to a profit of about $400,000 a year ago.

Revenue tumbled 27 percent to $15.3 million in this year’s first quarter from $21 million in the year-earlier period. And that was down from $27.5 million two years ago.

The company’s communications systems unit “started the year slowly reflecting the fluctuating timing of orders in this business,” Michael D. Popielec, Ultralife’s president and CEO, said in the earnings report.

Several large orders from the U.S. government closed later than expected and have “slipped into future quarters, including a $1.9 million order for our new Universal Vehicle Adaptors, which was anticipated in the first quarter and has now been received,” he added. “This order and a robust pipeline of opportunities support our expectation that we will begin to generate a return on our new product investments and generate top-line growth during 2014.”

Gross profit at Ultralife totaled $4.3 million, or 28.4 percent of revenue, compared to $6.4 million, or 30.3 percent of revenue, for the same quarter a year ago. The decrease is primarily attributable to the lower mix of higher-margin communications systems sales, Ultralife said. 

The company’s operating expenses decreased by 9.5 percent to $5.4 million in the first quarter, compared to $6 million a year ago.

For 2014, Ultralife management said it still expects mid-single digit organic revenue growth, “despite continued constraints on global government spending. Based on this outlook for revenue growth and the improvements made to the business model in 2013, management expects to increase operating profit year-over-year and generate a mid-single digit operating margin.”

Share repurchase program
Ultralife ended the quarter with $18.9 million in cash and no debt. Its board of directors has authorized the repurchase of up to 1.8 million shares of the company’s common stock over the next year.  The timing and actual number of shares repurchased will depend on a variety of factors including price, market conditions and applicable legal requirements, the company said.

Ultralife shares were trading up 12 cents, or more than 3 percent, at $3.72, as of 2:15 p.m. today.

Ultralife, headquartered in the town of Newark, makes batteries, power systems, and communications and electronics equipment. The company sells to government, defense, and commercial customers across the globe.

Contact Rombel at arombel@cnybj.com