Ultralife Reports Fourth-Quarter, Annual 2002 Results

August 19, 2002 by Jeff Shepard

Ultralife Batteries Inc. (Newark, NY) announced fourth-quarter results for the period ended June 30, 2002. Consolidated revenues reached $8.6 million, a 38 percent increase compared to the $6.2 million reported for the same quarter a year ago. For the full year, revenues reached a record of $32.5 million, an increase of 35 percent over the prior year.

Consolidated gross margin for the fourth quarter improved $1.7 million, from a loss of $0.6 million last year to a positive margin of $1.1 million this year. Primary battery margins improved $0.9 million and rechargeable margins improved more than $0.8 million from the year before. The improvements resulted from higher volumes and enhanced production efficiencies, as well as cost-saving actions taken during the second and third fiscal quarters.

In June, the company reported a one-time $14.3 million impairment charge related to its rechargeable business. As a result, the company's operating loss for the quarter ended June 30, 2002, was $16.1 million and the net loss was $15.8 million, or $1.23 per share. Excluding this one-time charge, however, the operating loss for the quarter was $1.8 million, a $2.1 million improvement over the $3.9 million loss reported last year. Net loss for the quarter was $1.5 million before the impairment charge, or $0.12 per share, compared with a net loss of $4.5 million, or $0.40 per share, for the same period a year ago.