Ultralife Corp. on Thursday reported a drop in third-quarter sales and profit as orders for its battery and energy products slowed in the government and defense sectors.
The Newark, Wayne County, firm reported net income from continuing operations of $607,000, or 4 cents a share, compared with net income of $1.5 million, or 9 cents a share, a year ago. Revenue was down 22 percent to $20.4 million from $26.2 million.
Michael Popielec, president and CEO, said the business restored profitability in the quarter and noted growing the top line remains the company’s top priority.
"In the face of difficult market conditions, we remain focused on protecting the (profit and loss) and maintaining a strong balance sheet,” Popielec said in a statement. “On the strength of a $3.2 million inventory reduction, we ended the quarter with a net cash balance of $10.8 million giving us ample liquidity to support our growth initiatives.
“As we expand our opportunities in commercial end markets, we are very encouraged by the level of interest in the company's new products serving the medical cart and emergency response markets.”
For the year, Ultralife expects revenue to decline some 20 percent over last year due to U.S. government’s budget challenges that are affecting the timing of orders. The company expects to report 2013 operating results in the range of breakeven to a modest operating loss.
Shares of Ultralife stock (NasdaqGM: ULBI) were down 2 percent at midday at $3.95.
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