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Cuts in government and defense spending worldwide had a negative impact on Ultralife Corp.’s second-quarter financial results. The company’s shares dropped nearly 8 percent.
The Newark, Wayne County-based firm Thursday reported a net loss from continuing operations of $1.4 million, or 8 cents a share, versus a net loss of $2 million, or 11 cents a share, for the same period last year.
Sales were $15.2 million, down 12 percent from sales of $17.3 million last year.
"The ongoing retrenchment of government and defense spending worldwide weighed on the second quarter performance of both Battery & Energy Products and Communications Systems,” said Michael Popielec, Ultralife's president and CEO, in a statement. "Nevertheless, we are encouraged by the progress we are making in diversifying our revenue sources and by the returns we are beginning to realize on our investments in new product development."
Management expects revenue for the year to be roughly 10 percent below last year, given the reductions in global government and defense spending that are likely to continue. As a result of the revised outlook for revenue, operating loss for the year is projected to be 2 percent to 3 percent of sales.
Shares (Nasdq: ULBI) were trading midafternoon at $3.55.
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