Ultralife Batteries Reports Third Quarter Financial Results
Ultralife Batteries, Inc. reported an operating loss of $2.1 million on revenues of $23.7 million for the third quarter ended September 30, 2006. In comparison, the company reported an operating loss of $1.5 million on revenues of $15.7 million for the same period last year. Subsequent to announcing preliminary third quarter results on October 26, the company adjusted third quarter revenue to reflect a final review of shipments at McDowell and updated its estimate of intangible amortization expense.
Third quarter revenue growth reflects increases in 9V sales and higher commercial business, particularly from the automotive telematics market, as well as the addition of McDowell Research and ABLE New Energy, which were acquired on July 3 and May 19, respectively, of this year. As a percentage of revenues, gross margins were 17% compared with 15% in the same quarter last year. Operating expenses of $6.1 million included $0.4 million in stock-based compensation expense, $0.5 million in intangible amortization, and $1.4 million in added operating costs from the newly-acquired companies. For the same period last year, operating expenses amounted to $3.9 million. Net loss for the third quarter of 2006 was $1.7 million, or $0.11 per common share, compared to a net loss of $1.3 million, or $0.09 loss per common share, for the third quarter of 2005.
For the nine-month period ended September 30, 2006, revenues totaled $63.4 million compared to $52.7 million for the same period last year. The company reported an operating loss of $1.4 million, including $1.0 million in stock-based compensation expense and $0.5 million of intangible amortization, compared to an operating loss of $3.0 million for the first nine months of 2005. Net loss for the first three quarters of 2006 was $1.4 million, or $0.10 per share, compared to a net loss for the same period last year of $4.3 million, or $0.30 per share.