NEWARK, N.Y., Aug. 02, 2018 (GLOBE NEWSWIRE) -- Ultralife Corporation (NASDAQ:ULBI) reported operating income of $1.6 million on revenue of $22.9 million for the second quarter ended July 1, 2018. For the second quarter of 2017, the Company reported operating income of $1.3 million on revenue of $19.9 million.

“Following a solid first quarter, Ultralife delivered second quarter revenue growth of 15% and leveraged operating income growth of 24%. Second quarter revenue was boosted by a 38% increase in total Company government/defense sales, as spending continued to recover in U.S. government/defense markets, and an 8% increase in medical sales,” said Michael D. Popielec, President and Chief Executive Officer. “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.”

Second Quarter 2018 Financial Results

Revenue was $22.9 million, an increase of $2.9 million, or 14.7%, compared to $19.9 million for the second quarter of 2017 reflecting higher government/defense and medical sales. Battery & Energy Products sales increased $1.0 million, or 5.6%, to $17.8 million compared to $16.9 million last year due primarily to increases in both government/defense and medical sales of 25.0% and 7.8%, respectively, partially offset by lower industrial commercial sales. Communications Systems sales grew 64.5% to $5.0 million compared to $3.1 million for the same period last year reflecting shipments of our Vehicle Installed Power Enhanced Riflemen Appliqué (“VIPER”) and Vehicle Amplifier Adapters for the U.S. Army’s Security Force Assistance Brigades to a large global defense prime contractor.

Gross profit was $6.6 million, or 28.6% of revenue, compared to $6.2 million, or 31.2% of revenue, for the same quarter a year ago. Battery & Energy Products’ gross margin was 27.6%, compared to 28.1% last year, and Communications Systems gross margin was 32.3%, compared to 48.4% last year, due to product mix.

Operating expenses were $4.9 million for both the 2018 and 2017 quarters reflecting continued tight control over discretionary spending in line with our business model. Operating expenses were 21.5% of revenue compared to 24.6% of revenue for the year earlier period.

Operating income was $1.6 million compared to $1.3 million last year.

Net income was $1.6 million, or $0.10 per share, compared to net income of $1.1 million, or $0.07 per share, for the second quarter of 2017. Earnings per share for the trailing twelve-month period increased to $.55 compared to $.52 at the end of the first quarter of 2018, with both periods reflecting the $.12 favorable impact of the Tax Cuts and Jobs Act in the fourth quarter of 2017.

About Ultralife Corporation

Ultralife Corporation serves its markets with products and services ranging from power solutions to communications and electronics systems. Through its engineering and collaborative approach to problem solving, Ultralife serves government, defense and commercial customers across the globe.

Headquartered in Newark, New York, the Company's business segments include Battery & Energy Products and Communications Systems. Ultralife has operations in North America, Europe and Asia. For more information, visit www.ultralifecorporation.com.

Conference Call Information

Ultralife will hold its second quarter earnings conference call today at 10:00 AM ET. To participate in the live call, please dial (800) 915-4836 at least ten minutes before the scheduled start time, identify yourself and ask for the Ultralife call. A live webcast of the conference call will be available to investors in the Events & Presentations section of the Company's website at http://investor.ultralifecorporation.com. For those who cannot listen to the live broadcast, a replay of the webcast will be available shortly after the call at the same location.

This press release may contain forward-looking statements based on current expectations that involve a number of risks and uncertainties. The potential risks and uncertainties that could cause actual results to differ materially include: potential reductions in revenues from key customers, uncertain global economic conditions and acceptance of our new products on a global basis. The Company cautions investors not to place undue reliance on forward-looking statements, which reflect the Company's analysis only as of today's date. The Company undertakes no obligation to publicly update forward-looking statements to reflect subsequent events or circumstances. Further information on these factors and other factors that could affect Ultralife’s financial results is included in Ultralife’s Securities and Exchange Commission (SEC) filings, including the latest Annual Report on Form 10-K.

ULTRALIFE CORPORATION AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS (Dollars in Thousands) (Unaudited) ASSETS July 1, December 31, 2018 2017 -------- ------------ Current Assets: Cash $20,749 $18,330 Trade Accounts Receivable, Net 15,468 14,657 Inventories 24,861 26,326 Prepaid Expenses and Other Current Assets 2,445 2,603 -------- ------------ Total Current Assets 63,523 61,916 Property, Equipment and Improvements, Net 8,056 7,570 Goodwill, Intangibles and Other Assets 27,266 27,700 -------- ------------ Total Assets $98,845 $97,186 -------- ------------ LIABILITIES AND SHAREHOLDERS' EQUITY Current Liabilities: Accounts Payable $6,656 $8,787 Accrued Compensation and Related Benefits 1,711 2,413 Accrued Expenses and Other Current Liabilities 2,487 3,039 -------- ------------ Total Current Liabilities 10,854 14,239 Deferred Income Taxes and Other Non-Current Liabilities 3,923 3,898 -------- ------------ Total Liabilities 14,777 18,137 -------- ------------ Shareholders' Equity: Common Stock 1,996 1,966 Capital in Excess of Par Value 181,818 180,211 Accumulated Deficit (79,117) (82,894) Accumulated Other Comprehensive Loss (2,036) (1,611) Treasury Stock (18,469) (18,469) -------- ------------ Total Ultralife Equity 84,192 79,203 Non-Controlling Interest (124) (154) -------- ------------ Total Shareholders’ Equity 84,068 79,049 -------- ------------ Total Liabilities and Shareholders' Equity $98,845 $97,186 -------- ------------

ULTRALIFE CORPORATION AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF INCOME (In Thousands Except Per Share Amounts) (Unaudited) Three-Month Six-Month Periods Ended Periods Ended July 1, July 2, July 1, July 2, 2018 2017 2018 2017 ------- ------- ------- ------- Revenues: Battery & Energy Products $17,831 $16,880 $35,055 $34,359 Communications Systems 5,033 3,059 10,878 7,615 ------- ------- ------- ------- Total Revenues 22,864 19,939 $45,933 $41,974 ------- ------- ------- ------- Cost of Products Sold: Battery & Energy Products 12,905 12,139 25,093 24,688 Communications Systems 3,409 1,579 7,008 4,175 ------- ------- ------- ------- Total Cost of Products Sold 16,314 13,718 32,101 28,863 ------- ------- ------- ------- Gross Profit 6,550 6,221 13,832 13,111 ------- ------- ------- ------- Operating Expenses: Research and Development 1,218 1,185 2,318 2,323 Selling, General and Administrative 3,700 3,714 7,526 7,625 ------- ------- ------- ------- Total Operating Expenses 4,918 4,899 9,844 9,948 ------- ------- ------- ------- Operating Income 1,632 1,322 3,988 3,163 Other (Income) Expense (86) 49 48 142 Income Before Income Tax Provision 1,718 1,273 3,940 3,021 Income Tax Provision 78 179 133 266 ------- ------- ------- ------- Net Income 1,640 1,094 3,807 2,755 Net Income Attributable to Non-Controlling Interest 13 - 30 6 ------- ------- ------- ------- Net Income Attributable to Ultralife Corporation $1,627 $1,094 $3,777 $2,749 ------- ------- ------- ------- Net Income Per Share Attributable to Ultralife Common Shareholders – Basic $.10 $.07 $.24 $.18 ------- ------- ------- ------- Net Income Per Share Attributable to Ultralife Common Shareholders – $.10 $.07 $.23 $.17 Diluted ------- ------- ------- ------- Weighted Average Shares Outstanding – Basic 15,922 15,510 15,813 15,461 ------- ------- ------- ------- Weighted Average Shares Outstanding – Diluted 16,520 15,850 16,354 15,752 ------- ------- ------- -------

Company Contact:Ultralife CorporationPhilip A. Fain (315) 210-6110 pfain@ulbi.com

Investor Relations Contact:LHA Jody Burfening(212) 838-3777 jburfening@lhai.com