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Ultralife wins $10.9 million contract

ultralife-logoUltralife Corp. has been awarded a nearly $11 million contract to supply vehicle amplifier-adaptors and mounted power amplifiers to Thales Defense & Security Inc.

Thales, a global leader in the development, manufacture and support of combat-proven, software-defined radio equipment, will use the VAAs to support the U.S. Army’s network modernization initiatives. When integrated with an advanced handheld radio, the VAA provides the soldier with an enhanced range of digital voice and data communications.

“This contract further demonstrates the effectiveness of our ongoing new product development strategy of designing and building technically advanced, integrated communication systems devices in collaboration with our strategic partners,” Ultralife President and CEO Michael Popielec said. “We look forward to continuing to add other new products and building blocks to our proven platforms to address the increasingly complex, secure integrated communications requirements for soldier modernization.”

Shipments are planned to begin prior to the end of 2018 and continue throughout 2019.

The Newark, Wayne County, power-solutions manufacturer serves government, defense and commercial customers globally. Its business segments include communications systems and battery and energy products. The company has operations in North America, Europe and Asia.

In its most recent quarterly earnings report, Ultralife posted a 15 percent increase in revenues and a 23 percent increase in net income. The company is expected to report third-quarter earnings Nov. 1.

Shares of company stock (Nasdaq: ULBI) closed Tuesday at $8.07 and were trading up 11 percent at $8.96 shortly after the opening bell Wednesday.

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

Ultralife posts higher Q2 revenue, earnings

ultralife-logoUltralife Corp. last week reported an increase in second-quarter income and earnings, boosted in part by defense sales.

The Newark, Wayne County-based power solutions manufacturer posted revenue of $22.9 million for the quarter ended July 1, a nearly 15 percent increased from $19.9 million in the second quarter last year.

Net income grew to $1.6 million in the second quarter from $1.3 million in the same quarter last year. On a per-share basis, earnings were 10 cents, up from 7 cents a year ago.

Battery & energy products sales increased nearly 6 percent to $17.8 million in the quarter, while communications systems sales grew nearly 65 percent to $5 million, reflecting shipments of the company’s Vehicle Installed Power Enhanced Riflemen Applique (VIPER) and Vehicle Amplifier Adapters for the U.S. Army’s Security Force Assistance Brigades.

“A strong first half, expanding revenue opportunities and adherence to our business model parameters position us well to deliver another year of profitable growth in 2018,” Ultralife President and CEO Michael Popielec said.

Operating expenses were $4.9 million for the quarter, reflecting continued tight control over discretionary spending, officials said.

“For 2018, we continue to be focused on increasing our revenue growth opportunities through market and sales reach expansion, new product development, and potential acquisitions,” Popielec said in the company’s earnings call Thursday.

Popielec said the company’s spending strategy is first on new product development, market expansion and capital expenditures, followed by acquisitions. The company’s last acquisition was in early 2016 when it acquired United Kingdom-based battery designer and manufacturer Accutronics Ltd.

“We’re still very actively engaged in looking at opportunities and are in different phases of those discussions. And we’re also frustrated we haven’t had something to release, but we want to make sure that we’re good stewards of the cash that we work so hard to generate.

Going forward, Ultralife will focus on a few key areas for expanding its organic revenue growth: medical and industrial market opportunities; the Internet of Things market; and the maturing of existing and capturing of new Government & Defense projects, Popielec said in the call.

Since the beginning of the year, shares of company stock (Nasdaq: ULBI) have increased from $6.50 to $9.90.

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

Ultralife revenue, income up in first quarter

ultralife-logoUltralife Corp. on Thursday reported a first-quarter increase in revenue and income.

For the quarter ended April 1, the Newark, Wayne County-based manufacturer reported operating income of $2.4 million on revenue of $23.1 million. That compares with operating income of $1.8 million on revenue of $22 million in the first quarter last year.

Net income for the quarter was $2.2 million, or 14 cents per diluted share, compared with net income of $1.7 million, or 11 cents per diluted share, in the first quarter last year.

“Our first quarter results demonstrate the leveraged earnings power of our business model and the diversity of new revenue opportunities we have been cultivating,” Ultralife President and CEO Michael Popielec said in a statement. “A strong start to the year, backlog and strict adherence to our business model parameters give us confidence that we will deliver another year of profitable growth.”

The company’s first-quarter revenue growth reflected higher medical and government/defense sales, Ultralife officials said. Battery & Energy Products sales decreased by $300,000 to $17.2 million, while Communications Systems grow more than 28 percent to $5.8 million.

Shares of Ultralife (Nasdaq: ULBI) stock were up nearly 3 percent to $9.50 in light trading Friday morning.

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