Ultralife Reports December-Quarter 2002 Results

February 25, 2003 by Jeff Shepard

Ultralife Batteries Inc. (Newark, NY) announced its preliminary, unaudited results for the period ended December 31, 2002. Consolidated revenues for the quarter were $8.8 million compared to $7.5 million for the same period a year ago. Consolidated gross margin for the three months ended December 31, 2002, improved nearly $1 million to $0.8 million from a loss of $0.2 million in the prior year.

Rechargeable battery margins improved $0.8 million as a result of cost-savings actions made during the prior year and lower depreciation charges. Primary battery margins rose $0.2 million from the year before as a result of 9V manufacturing efficiencies and higher sales volumes, offset in part by startup activity for high-volume, large cylindrical battery production and lower small cylindrical battery sales.

The company's operating loss for the quarter ended December 31, 2002, was $1.7 million compared with an operating loss of $3.3 million last year, reflecting the gross margin improvement and lower operating costs. The period represents the end of the company's transition "year," a six-month period, as it has changed its fiscal year-end from June 30 to December 31, effective as of December 31, 2002.