Ultralife Corp. reported a third-quarter net loss before markets opened on Thursday largely due to supply chain challenges and inflation. Sales were up 52 percent.
The Newark, Wayne County-based manufacturer posted a net loss of $200,000, or a penny a diluted share on a GAAP basis, compared to a net loss of $600,000, or four cents a diluted share, for the third quarter of 2021. Adjusted earnings for the most recent quarter were $1.3 million.
Revenue was $33.2 million, an increase of $11.5 million, compared to $21.8 million for the third quarter of 2021.
Revenue doubled year-over-year for the quarter, reflecting higher demand from customers in the company’s Battery & Energy Products segment and shipments of larger awards in its Communications Systems segment, the company reported.
“While we benefited from the operating expense leverage of the sharp revenue gain, the combination of production inefficiencies associated with supply chain disruptions and input cost inflation severely pressured gross margins and profitability for the quarter,” said Michael D. Popielec, company president and CEO, in a statement. “We continue to work on offsetting inflation and manufacturing workflow challenges with price realization and productivity gains to restore profitable growth.”
He added, “With a backlog now over $100 million, we are positioned well for near-term revenue increases and remain committed to advancing several transformational projects and new product opportunities to drive long-term revenue growth.”
Ultralife also announced Thursday it had been awarded a purchase order valued at some $5.5 million to supply its vehicle communications systems to a global prime defense contractor for the U.S. Army. Shipments are expected to commence and be completed in 2023.
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