Newark’s Ultralife Corp. on Thursday reported second-quarter earnings that fell short of Wall Street estimates.
For the second quarter ended June 30, the Wayne County power solutions, communications and electronics systems provider posted revenue of $26.8 million, a more than 6 percent decrease from $28.6 million in the second quarter of 2020. Net income was $800,000, or 5 cents per diluted share, compared with $1.7 million, or 10 cents per diluted share a year ago.
Analysts had anticipated GAAP earnings of 7 cents per share on sales of $28.5 million.
“Ultralife’s end-market diversification strategy continues to serve us well. For the second quarter, sales increased sequentially 3 percent from the first quarter as our oil and gas revenues rebounded, growing 49 percent year over year,” said President and CEO Michael Popielec in a statement. “Medical sales abated from last year’s COVID-related demand spike yet were above pre-pandemic levels, and sales from government/defense customers were soft relative to last year’s strong shipment flows.”
Popielec said that given the company’s liquidity position, Ultralife increased investments in capital expenditures and critical engineering resources to support new contracts and the completion of transformational new products.
“Although these investments weighed on operating and net income year-over-year comparisons, sequential EPS grew 20 percent on the strength of gains in commercial sales,” he said.
Supply chains and logistics continue to be the source of operational challenges, Popielec noted, delaying some shipments and increasing freight costs.
“Nevertheless, activity in our end markets remains high and our goal is to continue improving our financial performance each quarter,” he explained. “We remain focused on executing near-term growth initiatives and developing long-term growth opportunities while adhering to our proven and profitable business model.”
Shares of company stock (Nasdaq: ULBI) were down nearly 3 percent in morning trading Thursday to $8.22.
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