Ultralife Corporation Reports Mixed Q3 Results, 5.7% Revenue Growth for Nine-Month Period

Ultralife Corporation reported its financial results for the third quarter and nine-month period ending September 30, 2024, highlighting a mixed performance in revenue and profitability compared to the previous fiscal period.

For the three-month period, total revenues decreased to $35.7 million, down 9.6% from $39.5 million in Q3 2023. This decline was attributed to a 14.1% drop in government/defense sales and a 6.8% decrease in commercial sales. The Battery & Energy Products segment saw a slight increase in revenue, rising 1.9% to $32.5 million, while the Communications Systems segment experienced a significant decline of 58.2%, falling to $3.2 million.

Gross profit for Q3 2024 was $8.7 million, representing a gross margin of 24.3%, slightly down from 24.8% in the same quarter last year. Operating income fell to $511,000 from $2.1 million in Q3 2023, reflecting increased operating expenses of $8.2 million, which rose by 7.0% due to investments in new product development and additional sales resources. Net income attributable to Ultralife for the quarter was $258,000, or $0.02 per share, compared to $1.3 million, or $0.08 per share, in the prior year.

In contrast, for the nine-month period, Ultralife reported total revenues of $120.6 million, an increase of 5.7% from $114.1 million in 2023. The Battery & Energy Products segment contributed $104.2 million, up 10.6%, while Communications Systems revenues decreased by 17.3% to $16.4 million. Net income for the nine months was $6.1 million, or $0.37 per share, compared to $4.3 million, or $0.27 per share, in the same period last year.

The company’s total current assets decreased to $86.4 million as of September 30, 2024, from $90.2 million at the end of 2023. Total liabilities decreased to $37.8 million, while total stockholders’ equity increased to $134.6 million. The accumulated deficit improved to $(34.6 million) from $(40.8 million) at the end of 2023.

Strategically, Ultralife completed the acquisition of Electrochem Solutions, Inc. on October 31, 2024, for $50 million, aimed at enhancing operational efficiencies and expanding its customer base. The company also refinanced its debt obligations under a new Credit Agreement with KeyBank, which includes a $55 million senior secured term loan. As of September 30, 2024, Ultralife had $6.8 million in cash, down from $10.3 million at the end of 2023, reflecting a strong cash generation from operations despite the decrease in cash reserves.