Item
2.02
Results of Operations and Financial Condition
NEWARK, N.Y.
– November 2, 2017 – Ultralife Corporation (NASDAQ: ULBI)
reported operating income of $1.3 million on revenue of $21.0 million for the third quarter ended October 1, 2017. For the quarter ended September 25, 2016, the Company reported operating income of $1.1 million on revenue of $19.6 million.
“Third quarter sales grew 7% and operating profit increased 11% further illustrating the solid operating leverage of our business model. We are particularly pleased to report broad-based sales growth across a variety of end markets, both commercial and government/defense, domestically and internationally. Commercial sales increased 8%, boosted by a 14% gain in medical sales, while government/defense sales grew 6%, including a 58% increase within our Battery & Energy Products business. Having more than doubled both operating profit and EPS for the first nine months of the year, we are well positioned towards delivering another year of profitable growth,” said Michael D. Popielec, President and Chief Executive Officer. “In addition, the BA-5390 $21.4 million IDIQ award received in March, the VIPER $4.7 million contract received in August, and the recent BA-5790/5795 CFx $49.8 million IDIQ award received in September serve as positive indicators of future growth potential as we finish out 2017 and head into 2018.”
Revenue was $21.0 million, an increase of $1.4 million, or 7%, compared to $19.6 million for the third quarter of 2016 reflecting a $3.7 million increase in Battery & Energy Products sales partially offset by $2.3 million lower Communications Systems sales. Battery & Energy Products sales increased 25% to $18.6 million compared to $14.9 million last year. Communications Systems sales declined 48% to $2.4 million compared to $4.7 million for the same period last year which included $2.3 million of
Vehicle Installed Power Enhanced Riflemen Appliqué (“VIPER”) shipments.
Gross profit was $6.3 million, or 29.7% of revenue, compared to $6.0 million, or 30.5% of revenue, for the same quarter a year ago.
Battery & Energy Products’ gross margin was 27.9%, compared to 30.3% last year, a decrease of 240 basis points reflecting product mix and incremental supply chain and logistics fees. Communications Systems’ gross margin increased to 44.0% compared to 31.4% for the prior year demonstrating the high value proposition associated with core amplifier and integrated solutions products.
Operating expenses were $5.0 million compared to $4.9 million last year reflecting continued tight control over discretionary spending. Operating expenses were 23.7% of revenue compared to 24.8% of revenue for the year earlier period.
Operating income was $1.3 million compared to $1.1 million last year for an operating margin of 6.0% compared to 5.8% last year.
Net income was $1.1 million, or $0.07 per share, versus net income of $1.0 million, or $0.07 per share, for the third quarter of 2016
. Earnings per share for the trailing twelve-month period are $0.36.
T
he information set forth in this Form 8-K and the attached exhibit is being furnished to and not filed with the Securities and Exchange Commission and shall not be deemed as incorporated by reference in any filing under the Securities Exchange Act of 1934, as amended, or the Securities Act of 1933, as amended, except to the extent specifically provided in any such filing.