Shares of Ultralife Batteries Inc. soared nearly 23 percent Thursday after the company reported another contract and learned that a new battery had passed Department of Defense testing.
Ultralife stock spikes 23 percent
Shares of Ultralife Batteries Inc. soared nearly 23 percent Thursday after the company reported a new contract and was notified by the U.S. Department of Defense that a new battery successfully completed testing.
Ultralife stock (NYSE:ULBI) was trading midday at $12.80, up from Wednesdayâ€™s close of $10.41.
Its new BA-5390A lithium/manganese dioxide battery with a state-of-charge indicator is available now, following successful DOD testing.
â€œReaching this milestone is a significant achievement under our Next Gen II, Phase IV contract,â€ said John Kavazanjian, president and CEO, in a statement.
In December 2004, Ultralife announced its U.S. and U.K. operations were awarded the Next Gen II, Phase IV five-year batter production contract by the Defense Department. The deal could reach a maximum value of $286 million, a majority of which is related to the BA-5390A battery.
Ultralife also has been awarded a $1.4 million contract from defense industry contractor General Dynamics Corp.
The Newark firm will supply batteries and chargers for General Dynamicsâ€™ Land Warrior program, a system that uses technology to enhance a soldierâ€™s close-combat technical awareness, officials said. The system includes weapon-mounted sensors and a communications-navigation computer system.
Deliveries will begin this month and be completed by the end of March.
Last February, Ultralife received a $2.7 million development contract from General Dynamics to design and develop the batteries and chargers.
The company continues to show it can move highly engineered products from design into production, Kavazanjian said.
â€œThese capabilities are proving to be a key competitive advantage for us as the demand for our products continues to grow,â€ Kavazanjian said.
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