Ultralife Corporation in Newark reported operating income of $2.4 million on revenue of $23.1 million for the first quarter ended April 1st, 2018. It was an impressive start compared to the first quarter of 2017, when Company reported operating income of $1.8 million on revenue of $22.0 million.
“Our first quarter results demonstrate the leveraged earnings power of our business model and the diversity of new revenue opportunities we have been cultivating,” said Michael D. Popielec, President and Chief Executive Officer. “Total Company government/defense sales grew 6% driven by strong Communications Systems shipments and total Company commercial sales grew 3% driven by higher medical sales. On the strength of 5% revenue growth, solid gross margins and disciplined expense control, operating profit grew 28% generating a 10.2% operating margin. 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.”
First Quarter 2018 Financial Results
Revenue was $23.1 million, an increase of $1.0 million, or 4.7%, compared to $22.0 million for the first quarter of 2017 reflecting higher medical and government/defense sales. Battery & Energy Products sales decreased $.3 million, or 1.5%, to $17.2 million compared to $17.5 million last year due primarily to timing differences in government/defense shipments, not fully offset by an 18.9% increase in medical sales. Communications Systems grew 28.3% to $5.8 million compared to $4.6 million for the same period last year reflecting shipments of our Vehicle Amplifier Adapters for the U.S. Army’s Special Force Assistance Brigades under a contract awarded in December 2017, power supplies shipments to a large global defense prime contractor, as well as a 49% year-over-year increase in shipments of core products such as our 20-watt amplifiers and universal vehicle adapters.
Gross profit was $7.3 million, or 31.6% of revenue, compared to $6.9 million, or 31.3% of revenue, for the same quarter a year ago. Battery & Energy Products’ gross margin was 29.2%, compared to 28.2% last year, and Communications Systems’ gross margin was 38.4%, compared to 43.0% last year, primarily due to product mix.
Operating expenses were $4.9 million compared to $5.0 million last year reflecting continued tight control over discretionary spending. Operating expenses were 21.4% of revenue compared to 22.9% of revenue for the year-earlier period.
Operating income was $2.4 million compared to $1.8 million last year for an operating margin of 10.2% compared to 8.4% last year.
Net income was $2.2 million, or $0.14 per share, compared to net income of $1.7 million, or $0.11 per share, for the first 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.