Tag: michael popielec

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.

[email protected] / 585-653-4021
Follow Velvet Spicer on Twitter: @Velvet_Spicer

Newark’s Ultralife Corp. on Thursday reported a drop in fourth-quarter sales, but an improvement in its bottom line.

For the quarter ended Dec. 31, revenue was $29 million, a nearly 7 percent decline from $31 million in the fourth quarter last year. Net income was $2.1 million, or 13 cents per diluted share on a GAAP basis, compared with $1.6 million, or 10 cents per diluted share for the fourth quarter of 2019. Adjusted earnings were 17 cents, up from 13 cents in the year-ago quarter.

“Fourth-quarter operating results were in line with our internal expectations and reflect the continuing negative economic impact of the global pandemic, including oil and gas market sluggishness. Battery & Energy Products medical sales were up 94 percent and government/defense sales were up 19 percent, yet these were offset by reductions in oil and gas and Communications Systems sales. During the quarter, we also recognized a $1.6 million gain upon resolution of Ultralife’s claim in a class-action lawsuit,” said Ultralife President and CEO Michael Popielec.

For the full year, sales were $107.7 million, compared with $106.8 million in fiscal 2019. Net income was $5.23 million, up slightly from $5.2 million in the previous year. On a per-share basis, diluted earnings were 33 cents, compared with 32 cents in 2019.

“Notwithstanding the unprecedented challenges we faced during 2020, results for the year demonstrate the resiliency of our business model, the efficacy of our end-market diversification strategy and the strength of our balance sheet. We grew total year sales to the highest level in nine years, sustained profitability, generated operating cash flow and repaid nearly all of the SWE acquisition-related debt,” Popielec said. “While the outlook for demand in our end markets is less visible than we would like, we will remain focused on what we can control: organic growth initiatives, including completing transformational new product development projects and investments in strategic capital expenditure, and synergistic acquisitions.”

Ultralife serves its markets with products and services ranging from power solutions to communications and electronics systems. Ultralife serves government, defense and commercial customers globally.

Shares of company stock (Nasdaq: ULBI) were up nearly 5 percent to $6.25 in midday trading Thursday.

[email protected] / 585-653-4021
Follow Velvet Spicer on Twitter: @Velvet_Spicer

Ultralife Corp. on Thursday reported a second-quarter decline in revenue, despite increases in two sales segments.

The Newark battery maker reported revenue for the quarter ended June 30 of $28.6 million, down from $29.4 million in the year-ago quarter. Net income for the quarter fell to $1.7 million from $2.3 million a year ago. On a per-share basis, earnings dropped 4 cents to 10 cents in the quarter.

“Ultralife’s second-quarter adjusted earnings per share of 13 cents reflects the benefits of our end-market diversity and resilient business model in the face of continued business disruptions caused by the pandemic,” said Ultralife President and CEO Michael Popielec. “Our Battery and Energy Products’ medical sales and government/defense sales increased 72 percent and 50 percent year over year, respectively, and when combined with the contribution from SWE, nearly offset Communications Systems sales which were lower due to the completion of shipments on a major contract. Altogether, our second-quarter performance reinforces our view that Ultralife is durably positioned both to sustain profitability and positive cash flow/liquidity through a period of economic weakness and to execute on initiatives to drive future growth opportunities.”

Ultralife reported cash on hand for the quarter of $8.39 million, compared with $7.41 million at the end of the fourth quarter last year. Total assets were $137.6 million, compared with $144.6 million at the end of 2019.

The Wayne County manufacturer serves its markets with products and services ranging from power solutions to communications and electronics systems. Its business segments include Battery & Energy Products and Communications Systems. The company serves the government, defense and commercial customers globally.

Shares of company stock (Nasdaq: ULBI) were up more than 4 percent midday Thursday at $7.27.

[email protected] / 585-653-4021
Follow Velvet Spicer on Twitter: @Velvet_Spicer

Wayne County manufacturer Ultralife Corp. this week reported first-quarter financials that saw a 37 percent rise in revenue and a 150 percent increase in net income.

For the quarter ended March 31, the Newark battery and communication systems maker posted operating income of $1.5 million on revenue of $25.8 million. That compares with revenue of $18.9 million and operating income of $500,000 in the same quarter last year.

Net income for the quarter was $1.1 million, or 7 cents per diluted share, compared with a net income of $400,000, or 3 cents per diluted share, in the year-ago quarter.

“Ultralife posted strong results for the first quarter, delivering a leveraged operating profit of $1.5 million, up 171 percent over last year, on a 37 percent increase in revenue while contending with COVID-19 impacts including a month-long shutdown in China and supply chain disruptions,” said President and CEO Michael Popielec in a statement. “As an essential supplier, while ensuring the health and safety of our employees by implementing the protocols established by state and federal public health officials, we are striving to ensure an uninterrupted flow of our mission-critical products serving medical device, first responder, public safety, energy and national security customers.”

Popielec also noted the company’s planned $1 million investment in the second quarter for additional test equipment to meet the increased demand for Ultralife’s power supplies for ventilators, respirators and infusion pumps.

“With a backlog increasing approximately 20 percent over year-end 2019, ample liquidity, end-market diversity and tight control over discretionary spending, we are well-positioned to both sustain operations and continue investing in growth initiatives,” he said.

Company officials said increased revenue primarily was due to the addition of Southwest Electronic Energy Corp. and higher communications systems sales during the quarter. Commercial sales increased 48 percent, while government/defense sales rose 24 percent in the first quarter.

In an earnings call Thursday, Popielec said Ultralife’s strategy is to drive revenue growth opportunities through diversification, expansion of markets and sales reach, new product development, strategic capital expenditures and potential acquisitions.

“The COVID-19 breakout continues to create new challenges and opportunities each day. Obviously, there is a significant amount of uncertainty given the impact on the global economy, our specific end markets and the worldwide supply chain,” he said in the call. “Whereas at this time, it would be impossible to predict how this all plays out, we will work to overcome any hurdles and continue to strive for another year of profitable growth in 2020.”

Shares of company stock (Nasdaq: ULBI) closed Thursday at $7.05, but were up midday Friday to $7.16.

[email protected] / 585-653-4021
Follow Velvet Spicer on Twitter: @Velvet_Spicer