Ultralife Corporation Reports Fourth Quarter Results

Ultralife Corporation Reports Fourth Quarter Results

NEWARK, N.Y., Feb. 13, 2014 (GLOBE NEWSWIRE) -- Ultralife Corporation
(Nasdaq:ULBI) reported operating income from continuing operations of $0.2
million on revenue of $20.2 million for the quarter ended December 31, 2013.
For the fourth quarter of 2012, the company reported operating income from
continuing operations of $2.4 million on revenue of $29.3 million.

"The fourth quarter closed a year during which the slowdown in global
defense-related spending and decision-making dominated our top line
comparables. During 2013, we right-sized the business model and stabilized
quarterly revenues for our Battery & Energy Products business which
compensated for weak Communication Systems' sales such that we delivered a
modest operating loss for the year, in line with our guidance," said Michael
D. Popielec.

"As we enter 2014, we are starting to realize initial returns on the
investments we made in new product development over the past two years,
particularly in the areas of portable power, medical carts and integrated
communications systems. With the maturation of our new products, we expect to
gain further customer acceptance during the year and generate top-line growth.
This growth, along with deeply-rooted productivity gains and improved
liquidity, will enable us to fully leverage our highly-efficient business
model," concluded Popielec.

Fourth Quarter 2013 Financial Results

Revenue was $20.2 million, compared to $29.3 million for the fourth quarter of
2012, a 31% decline. Battery & Energy Products sales were $15.9 million,
compared to $18.8 million last year, a 16% decline, reflecting last year's
fulfillment of a large order to an allied country's department of defense and
the slowdown in the government and defense order rate for rechargeable and
non-rechargeable batteries. Communications Systems sales were $4.3 million,
compared to $10.4 million for the same period last year, a decrease of $6.1
million. Prior year Communications Systems' sales benefited from the
fulfillment of several large orders for amplifiers from international defense
customers.

Gross profit was $5.6 million, or 27.7% of revenue, compared to $9.5 million,
or 32.3% of revenue, for the same quarter a year ago, a decrease of 460 basis
points, primarily attributable to a lower mix of Communication Systems sales.
Battery & Energy Products' gross margin was 26.1%, compared to 27.0% last
year, a 90 basis point decrease reflecting lower sales volume and a less
favorable product mix. Communications Systems' gross margin was 33.5%,
compared to 41.9% last year, a decrease of 840 basis points also reflecting
the impact of lower sales volume on production and the product mix.

Operating expenses declined $1.7 million, or 24%, to $5.4 million, compared to
$7.1 million a year ago, primarily due to reductions in general and
administrative expense and continued focus on controlling discretionary
spending. As a percent of revenue, operating expenses were 26.6%, compared to
24.3% a year ago.

Operating profit was $0.2 million, compared to $2.4 million for the same
period in 2012, reflecting lower gross profit offset by operating expense
reductions. Operating margin was 1.1%, compared to 8.0% for the year-earlier
period.

Net income from continuing operations was $0.1 million, or $0.01 per share,
compared to net income of $2.1 million, or $0.12 per share, for the fourth
quarter of 2012.

Outlook

For 2014, management 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 for the year and 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.

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: uncertain global economic conditions, increased competitive
environment and pricing pressures, disruptions related to restructuring
actions and delays. 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 fourth 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://www.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.

ULTRALIFE CORPORATION
CONSOLIDATED BALANCE SHEETS
(In Thousands, Except Per Share Amounts)
(unaudited)
                                                                
                                                                
                                                    December 31, December 31,
ASSETS                                               2013         2012
                                                                
Current assets:                                                  
Cash and cash equivalents                            $16,489    $10,078
Trade accounts receivable, net                       14,238      20,913
Inventories                                          26,053      30,370
Prepaid expenses and other current assets            2,031       2,461
Total current assets                                 58,811       63,822
                                                                
Property and equipment                               10,202      12,415
                                                                
Other assets:                                                    
Goodwill, intangible and other assets                21,203       21,481
                                                                
Total Assets                                         $90,216    $97,718
                                                                
LIABILITIES AND SHAREHOLDERS' EQUITY                             
                                                                
Current liabilities:                                             
Short-term debt and current portion of long-term     $--        $--
debt
Accounts payable                                     7,053       11,357
Other current liabilities                            4,971       8,535
Total current liabilities                            12,024       19,892
                                                                
Long-term liabilities:                                           
Other long-term liabilities                          4,547       4,370
                                                                
Shareholders' equity:                                            
Ultralife equity:                                                
Common stock, par value $0.10 per share              1,888        1,886
Capital in excess of par value                       174,932      173,791
Accumulated other comprehensive loss                 (614)        (620)
Accumulated deficit                                  (94,804)     (93,878)
                                                    81,402       81,179
Less -- Treasury stock, at cost                      7,658        7,658
Total Ultralife equity                               73,744       73,521
Noncontrolling interest                              (99)        (65)
Total shareholders' equity                           73,645       73,456
                                                                
Total Liabilities and Shareholders' Equity           $90,216    $97,718

                                                              
ULTRALIFE CORPORATION
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
(In Thousands, Except Per Share Amounts)
(Unaudited)

                                                              
                          Three Month Periods       Twelve Month Periods
                           Ended                    Ended
                                                              
                          December 31, December 31, December 31, December 31,
                          2013         2012         2013         2012
                                                              
Revenues:                                                      
Battery & energy products  $15,861    $18,846    $57,077    $71,084
Communications systems     4,315       10,423      21,758      30,573
Total revenues             20,176       29,269       78,835       101,657
                                                              
Cost of products sold:                                         
Battery & energy products  11,714      13,760      42,739      53,522
Communications systems     2,869       6,058       13,475      19,405
Total cost of products     14,583      19,818      56,214      72,927
sold
                                                              
Gross profit               5,593       9,451       22,621      28,730
                                                              
Operating expenses:                                            
Research and development   1,403       1,511       5,859       7,216
Selling, general, and      3,967       5,587       17,386      21,628
administrative
Total operating expenses   5,370       7,098       23,245      28,844
                                                              
Operating income (loss)    223         2,353       (624)       (114)
                                                              
Other income (expense):                                        
Interest income            12          --          39          4
Interest expense           (39)        (124)       (238)       (440)
Miscellaneous              5           (41)        (26)        (24)
Income (loss) from
continuing operations      201          2,188        (849)        (574)
before income taxes
                                                              
Income tax provision -     52          152         94          539
current
Income tax
provision(benefit)        52          (35)        145         15
-deferred
Total income taxes         104         117         239         554
                                                              
Net income (loss) from     97          2,071       (1,088)     (1,128)
continuing operations
                                                              
Discontinued operations:                                       
Income (loss) from
discontinued operations,   (31)        (680)       128         (501)
net of tax
                                                              
Net income (loss)          66          1,391       (960)       (1,629)
                                                              
Net loss attributable to   3           --         34          31
noncontrolling interest
                                                              
Net income (loss)          $69        $1,391     $(926)     $(1,598)
attributable to Ultralife
                                                              
Other comprehensive income                                     
(loss):
Foreign currency          (47)        446         6           365
translation adjustments
                                                              
Comprehensive income
(loss) loss attributable   $22        $1,837     $(920)     $(1,233)
to Ultralife
                                                              
                                                              
Net income (loss)
attributable to Ultralife                                      
common shareholders -
basic
Continuing operations     $0.01      $0.12      $(0.06)    $(0.06)
Discontinued operations   $0.00      $(0.04)    $0.01      $(0.03)
Total                     $0.00      $0.08      $(0.05)    $(0.09)
Net income (loss)
attributable to Ultralife                                      
common shareholders -
diluted
Continuing operations     $0.01      $0.12      $(0.06)    $(0.06)
Discontinued operations   $0.00      $(0.04)    $0.01      $(0.03)
Total                     $0.00      $0.08      $(0.05)    $(0.09)
                                                              
                                                              
Weighted average shares    17,477      17,443      17,465      17,403
outstanding - basic
Weighted average shares    17,572      17,443      17,465      17,403
outstanding - diluted

CONTACT: Company Contact:
         Ultralife Corporation
         Philip A. Fain
         (315) 332-7100
         pfain@ulbi.com
        
         Investor Relations Contact:
         LHA
         Jody Burfening
         (212) 838-3777
         jburfening@lhai.com

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