Ultralife Corporation Reports First Quarter Results NEWARK, N.Y., May 2, 2013 (GLOBE NEWSWIRE) -- Ultralife Corporation (Nasdaq:ULBI) reported an operating profit from continuing operations of $0.4 million on revenue of $21.0 million for the quarter ended March 31, 2013. For the first quarter of 2012, the company reported an operating loss from continuing operations of $1.3 million on revenue of $27.5 million. "Through solid execution in the face of ongoing softness in our Battery & Energy Products business, we delivered our third consecutive profitable quarter, consistent with our internal expectations, and reversed last year's operating loss," said Michael D. Popielec, Ultralife's president and chief executive officer. "Despite the budget pressures confronted by our U.S. government/defense customers, our plans to diversify our revenue by driving international and commercial opportunities are proceeding, and we are still planning for modest revenue gains in our Battery & Energy Products business in 2013. Revenue for our Communications Systems business grew by 7% and we expect year-over-year growth to continue throughout 2013 based on our opportunity funnel and anticipated timing of pending projects.As a result, with an efficient and profitable business model and strong cash generation, we remain well positioned to realize operating leverage gains on revenue growth during 2013." First Quarter 2013 Financial Results Discontinued operations for the first quarter of 2013 include the final settlement of our obligation to return our former UK facility back to its original condition per a previous contractual commitment.For the first quarter of 2012 discontinued operations include the operating results of RedBlack which was sold in the third quarter of 2012.All revenue, gross margin and operating expense amounts presented below represent results from continuing operations. Revenue was $21.0 million, compared to $27.5 million for the first quarter of 2012, a 24% decline, reflecting an increase of $0.5 million in Communications Systems sales offset by a $7.0 million decrease in Battery & Energy Products sales. As a result of continued new business development, the mix of sales from international customers increased to 46% from 37% for the first quarter last year. Battery & Energy Products sales were $13.1 million, compared to $20.1 million last year, a 35% decline, reflecting for the most part the continued slowdown in U.S. government and defense order rate for rechargeable and non-rechargeable batteries and charger systems.Communications Systems sales were $8.0 million, compared to $7.4 million for the same period last year, an increase of 7%, reflecting the fulfillment of large orders for amplifiers from international defense customers and continued demand for amplifiers from the U.S. government. Gross profit was $6.4 million, or 30.3% of revenue, compared to $6.6 million, or 24.0% of revenue, for the same quarter a year ago. The 630 basis point increase reflected productivity gains in both businesses and a higher mix of Communications Systems sales. Battery & Energy Products' gross margin was 23.7%, compared to 19.6% last year, an increase of 410 basis points due to productivity improvements resulting from our lean processes and improved 9-volt margins which partially offset lower overhead absorption on volume declines. Communications Systems' gross margin was 41.2%, an increase of 550 basis points over the 35.7% gross margin reported last year, which resulted from higher volumes and productivity improvements. Operating expenses decreased by 24% to $6.0 million, compared to $7.9 million a year ago, reflecting across-the-board actions taken to align spending with revenue. As a result, operating expenses were 28.6% of revenue, compared to 28.7% for the year earlier period. The combination of higher gross margin and essentially flat operating expenses as a percentage of revenue resulted in a $1.7 million improvement in operating income to $0.4 million, compared to an operating loss of $1.3 million last year, despite lower revenue.Operating margin for the first quarter of 2013 was 1.8%. Net income from continuing operations was $0.2 million, or $0.01 per share, compared to a net loss of $1.4 million, or $0.08 per share, for the first quarter of 2012.Net income from discontinued operations was $0.3 million, or $0.02 per share, for the first quarter of 2013 versus a net loss of $.1 million, or $0.01 per share, for the first quarter of 2012. Outlook Management reiterated its outlook for 2013 and continues to expect low- to mid-single digit revenue growth reflecting strong growth in Communications Systems sales and modest gains in the Battery & Energy Products business, despite continued constraints on U.S. government spending.Based on this outlook for revenue growth, ongoing productivity improvements and plans to continue prudently investing in new product development, management expects to increase operating profitability for the year and to generate a mid-single digit operating margin. Management cautions that the timing of orders and shipments may cause variability in quarterly results. About Ultralife Corporation Ultralife Corporation serves its markets with products and services ranging from portable 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, please call (800) 915-4836, identify yourself and ask for the Ultralife call. The conference call will also be broadcast live over the Internet in the Events & Presentations section of the company's website at http://investor.ultralifecorporation.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. 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 CONSOLIDATED BALANCE SHEETS (In Thousands, Except Per Share Amounts) (unaudited) March 31, December 31, ASSETS 2013 2012 Current assets: Cash and cash equivalents $8,908 $10,078 Trade accounts receivable, net 17,280 20,913 Inventories 28,281 30,370 Prepaid expenses and other current assets 2,570 2,461 Total current assets 57,039 63,822 Property and equipment 11,778 12,415 Other assets: Goodwill, intangible and other assets 23,425 21,481 Total Assets $92,242 $97,718 LIABILITIES AND SHAREHOLDERS' EQUITY Current liabilities: Short-term debt and current portion of long-term debt $-- $-- Accounts payable 8,710 11,357 Other current liabilities 5,072 8,535 Total current liabilities 13,782 19,892 Long-term liabilities: Other long-term liabilities 4,506 4,370 Shareholders' equity: Ultralife equity: Common stock, par value $0.10 per share 1,886 1,886 Capital in excess of par value 173,993 173,791 Accumulated other comprehensive loss (747) (620) Accumulated deficit (93,449) (93,878) 81,683 81,179 Less --- Treasury stock, at cost 7,658 7,658 Total Ultralife equity 74,025 73,521 Noncontrolling interest (71) (65) Total shareholders' equity 73,954 73,456 Total Liabilities and Shareholders' Equity $92,242 $97,718 ULTRALIFE CORPORATION CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (In Thousands, Except Per Share Amounts) (Unaudited) Three-Month Periods Ended March 31, April 1, 2013 2012 Revenues: Battery & energy products $13,053 $20,082 Communications systems 7,966 7,419 Total revenues 21,019 27,501 Cost of products sold: Battery & energy products 9,953 16,139 Communications systems 4,687 4,769 Total cost of products sold 14,640 20,908 Gross profit 6,379 6,593 Operating expenses: Research and development 1,369 2,139 Selling, general, and administrative 4,635 5,743 Total operating expenses 6,004 7,882 Operating income (loss) 375 (1,289) Other income (expense): Interest income 2 1 Interest expense (90) (104) Miscellaneous (25) 52 Income (loss) from continuing operations before 262 (1,340) income taxes Income tax provision-current 38 79 Income tax provision-deferred 60 12 Total income taxes 98 91 Net income (loss) from continuing operations 164 (1,431) Discontinued operations: Income (loss) from discontinued operations, net of 264 (71) tax Net income (loss) 428 (1,502) Net (income) loss attributable to noncontrolling 6 -- interest Net income (loss) attributable to Ultralife $434 $(1,502) Other comprehensive income (loss): Foreign currency translation adjustments (127) 148 Comprehensive income (loss) attributable to $307 $(1,354) Ultralife Net income (loss) attributable to Ultralife common shareholders - basic Continuing operations $0.01 $(0.08) Discontinued operations $0.02 $(0.01) Total $0.02 $(0.09) Net income (loss) attributable to Ultralife common shareholders - diluted Continuing operations $0.01 $(0.08) Discontinued operations $0.02 $(0.01) Total $0.02 $(0.09) Weighted average shares outstanding - basic 17,457 17,358 Weighted average shares outstanding - diluted 17,478 17,358 CONTACT: Company Contact: Ultralife Corporation Philip Fain (315) 210-6110 firstname.lastname@example.org Investor Relations Contact: Lippert/Heilshorn & Associates Jody Burfening (212) 838-3777 email@example.com Ultralife Corporation logo
Ultralife Corporation Reports First Quarter Results
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