Ultralife (ULBI) 10-Q 4 May 17 2017 Q1 Quarterly report Financial data

Document And Entity Information

Document And Entity Information - shares	3 Months Ended
	Apr. 02, 2017	May 01, 2017
Document Information [Line Items]
Entity Registrant Name	Ultralife Corp
Entity Central Index Key	875,657
Trading Symbol	ulbi
Current Fiscal Year End Date	--12-31
Entity Filer Category	Smaller Reporting Company
Entity Current Reporting Status	Yes
Entity Voluntary Filers	No
Entity Well-known Seasoned Issuer	No
Entity Common Stock, Shares Outstanding (in shares)		15,490,305
Document Type	10-Q
Document Period End Date	Apr. 2, 2017
Document Fiscal Year Focus	2,017
Document Fiscal Period Focus	Q1
Amendment Flag	false

Consolidated Balance Sheets (Cu

Consolidated Balance Sheets (Current Period Unaudited) - USD ($) $ in Thousands	Apr. 02, 2017	Dec. 31, 2016
Current assets:
Cash	$ 13,595	$ 10,629
Restricted cash	84	77
Trade accounts receivable, net of allowance for doubtful accounts of $276 and $277, respectively	13,747	13,179
Inventories, net	22,729	23,456
Prepaid expenses and other current assets	1,995	2,079
Total current assets	52,150	49,420
Property, equipment and improvements, net	8,071	7,999
Goodwill	20,048	19,965
Other intangible assets, net	7,147	7,194
Security deposits and other non-current assets	72	72
Deferred income taxes	94	94
Total assets	87,582	84,744
Current liabilities:
Accounts payable	7,071	7,292
Accrued compensation and related benefits	1,708	1,258
Accrued expenses and other current liabilities	2,416	2,606
Income taxes payable	211	172
Total current liabilities	11,406	11,328
Deferred income taxes	5,586	5,538
Other non-current liabilities	18	18
Total liabilities	17,010	16,884
Commitments and contingencies (Note 11)
Shareholders’ equity:
Preferred stock – par value $.10 per share; authorized 1,000,000 shares; none issued
Common stock – par value $.10 per share; authorized 40,000,000 shares; issued – 19,505,057 shares at April 2, 2017 and 19,324,723 shares at December 31, 2016; outstanding – 15,489,305 shares at April 2, 2017 and 15,308,971 at December 31, 2016	1,951	1,932
Capital in excess of par value	178,936	178,163
Accumulated deficit	(88,887)	(90,542)
Accumulated other comprehensive loss	(2,821)	(3,080)
Treasury stock - at cost; 4,015,752 shares	(18,443)	(18,443)
Total Ultralife Corporation equity	70,736	68,030
Non-controlling interest	(164)	(170)
Total shareholders’ equity	70,572	67,860
Total liabilities and shareholders’ equity	$ 87,582	$ 84,744

Consolidated Balance Sheets (C3

Consolidated Balance Sheets (Current Period Unaudited) (Parentheticals) - USD ($) $ in Thousands	Apr. 02, 2017	Dec. 31, 2016
Trade accounts receivable, allowance for doubtful account	$ 276	$ 277
Preferred stock, par value (in dollars per share)	$ 0.10	$ 0.10
Preferred stock, shares authorized (in shares)	1,000,000	1,000,000
Preferred stock, shares issued (in shares)	0	0
Common stock, par value (in dollars per share)	$ 0.10	$ 0.10
Common stock, shares authorized (in shares)	40,000,000	40,000,000
Common stock, shares issued (in shares)	19,505,057	19,324,723
Common stock, shares outstanding (in shares)	15,489,305	15,308,971
Treasury stock, shares (in shares)	4,015,752	4,015,752

Consolidated Statements of Inco

Consolidated Statements of Income and Comprehensive Income (Unaudited) - USD ($) shares in Thousands, $ in Thousands	3 Months Ended
	Apr. 02, 2017	Mar. 27, 2016
Revenues	$ 22,035	$ 20,833
Cost of products sold	15,145	14,428
Gross profit	6,890	6,405
Operating expenses:
Research and development	1,138	1,656
Selling, general and administrative	3,911	4,267
Total operating expenses	5,049	5,923
Operating income	1,841	482
Other expense:
Interest and financing expense	(68)	(102)
Miscellaneous	(25)	(11)
Total other expense	(93)	(113)
Income before income taxes	1,748	369
Income tax provision	(87)	(88)
Net income	1,661	281
Net loss (income) attributable to non-controlling interest	(6)	18
Net income attributable to Ultralife Corporation	1,655	299
Other comprehensive income (loss):
Foreign currency translation adjustments	259	(279)
Comprehensive income attributable to Ultralife Corporation	$ 1,914	$ 20
Net income per share attributable to Ultralife common shareholders – basic (in dollars per share)	$ 0.11	$ 0.02
Net income per share attributable to Ultralife common shareholders – diluted (in dollars per share)	$ 0.11	$ 0.02
Weighted average shares outstanding – basic (in shares)	15,412	15,323
Potential common shares (in shares)	244	343
Weighted average shares outstanding – diluted (in shares)	15,656	15,666

Consolidated Statements of Cash

Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands	3 Months Ended
	Apr. 02, 2017	Mar. 27, 2016
OPERATING ACTIVITIES:
Net income	$ 1,661	$ 281
Adjustments to reconcile net income to net cash provided by (used in) operating activities:
Depreciation	503	589
Amortization of intangible assets	105	137
Amortization of financing fees	18	19
Stock-based compensation	40	181
Deferred income tax benefit	36	42
Changes in operating assets and liabilities:
Accounts receivable	(537)	(2,407)
Inventories	771	(1,138)
Prepaid expenses and other assets	50	41
Accounts payable and other liabilities	92	(620)
Net cash provided by (used in) operating activities	2,739	(2,875)
INVESTING ACTIVITIES:
Acquisition of Accutronics, net of cash acquired		(9,857)
Cash paid for property, equipment and improvements	(581)	(69)
Change in restricted cash	(7)	0
Net cash used in investing activities	(588)	(9,926)
FINANCING ACTIVITIES:
Proceeds from debt borrowings		1,156
Proceeds from stock option exercise	741	14
Net cash provided by financing activities	741	1,170
Effect of exchange rate changes on cash	74	(3)
INCREASE (DECREASE) IN CASH	2,966	(11,634)
Cash, beginning of period	10,629	14,393
Cash, end of period	$ 13,595	$ 2,759

Note 1 - Basis of Presentation

Note 1 - Basis of Presentation	3 Months Ended
	Apr. 02, 2017
Notes to Financial Statements
Business Description and Basis of Presentation [Text Block]	1. BASIS OF PRESENTATION The accompanying unaudited Consolidated Financial Statements of Ultralife Corporation (the “Company”) and subsidiaries have been prepared in accordance with generally accepted accounting principles in the United States of America (“GAAP”) for interim financial information and with the instructions to Rule 8 03 10 December 31, 2016. The December 31, 2016 Our monthly closing schedule is a 4/4/5

Note 2 - Acquisition

Note 2 - Acquisition	3 Months Ended
	Apr. 02, 2017
Notes to Financial Statements
Mergers, Acquisitions and Dispositions Disclosures [Text Block]	2. ACQUISITION On January 13, 2016, The acquisition was completed pursuant to the terms of the Share Purchase Agreement dated January 13, 2016 £7,575 ($10,976) The purchase price was subject to adjustment based on the difference between actual and estimated amounts of working capital of Accutronics as well as the amount of net cash of Accutronics. The adjustment resulted in a final payment to the Sellers in the amount of £133 February 24, 2016, £7,708 ($11,161). The purchase price allocation was determined in accordance with the accounting treatment of a business combination in Financial Accounting Standards Board (“FASB”) ASC Topic 805, The final allocation of purchase price to the assets acquired and liabilities assumed is presented in the table below (in thousands). Management is responsible for determining the fair value of the tangible and intangible assets acquired and liabilities assumed as of the date of acquisition. Management considered a number of factors, including reference to an analysis performed under FASB ASC Topic 805 Cash $ 1,304 Accounts Receivable 1,344 Inventory 2,167 Prepaids and Other Current Assets 584 Property, Plant & Equipment 269 Identifiable Intangible Assets 4,374 Goodwill 4,487 Accounts Payable (1,009 ) Accrued Expenses (1,136 ) Income Taxes Payable (111 ) Non-Current Liabilities (209 ) Deferred Income Taxes (74 ) Deferred Income Taxes on Intangible Assets (829 ) Total Consideration $ 11,161 The goodwill included in the Company’s purchase price allocation presented above represents the value of Accutronics assembled and trained workforce, the incremental value that Accutronics engineering and technology will bring to the Company and the revenue growth expected to occur over time attributable to increased market penetration from future new products and customers. The goodwill acquired in connection with the acquisition is not deductible for income tax purposes. The identifiable intangible assets included in the Company’s purchase price allocation represent customer contracts and relationships of $2,821, $1,132 $421 10 15 During the three March 27, 2016, $251 $91 $2,486 $275 three March 27, 2016 Set forth below is the unaudited pro forma results of the Company for the three March 27, 2016, January 1, 2015. three March 27, 2016 $251 $91 January 1, 2016 Three Months Ended March 27, 2016 Revenue $ 20,833 Operating income $ 775 Net income attributable to Ultralife $ 607 Earnings per share: Basic $ .04 Diluted $ .04 The unaudited pro forma results do not reflect the realization of any expected cost savings or other synergies from the acquisition of Accutronics as a result of restructuring activities, other cost savings initiatives or sales synergies following the completion of the business combination. Accordingly, these unaudited pro forma results are presented for informational purposes only and not necessarily indicative of what the actual results of operations of the combined Company would have been if the acquisition had occurred at the beginning of the 2015

Note 3 - Share Repurchase Progr

Note 3 - Share Repurchase Program	3 Months Ended
	Apr. 02, 2017
Notes to Financial Statements
Stockholders' Equity Note Disclosure [Text Block]	3. SHARE REPURCHASE PROGRAM On April 28, 2014, May 1, 2014 1.8 twelve June 2, 2016, 3.4 10b 18 10b5 1 June 2, 2016 May 1, 2014 June 2, 2016, 2,592,095 $10,480. no three March 27, 2016.

Note 4 - Inventories

Note 4 - Inventories	3 Months Ended
	Apr. 02, 2017
Notes to Financial Statements
Inventory Disclosure [Text Block]	4. INVENTORIES Inventories are stated at the lower of cost or market with cost determined under the first first April 2, December 31, 2017 2016 Raw materials $ 13,157 $ 14,482 Work in process 1,427 986 Finished goods 8,145 7,988 Total $ 22,729 $ 23,456

Note 5 - Property, Equipment an

Note 5 - Property, Equipment and Improvements	3 Months Ended
	Apr. 02, 2017
Notes to Financial Statements
Property, Plant and Equipment Disclosure [Text Block]	5. PROPERTY, EQUIPMENT AND IMPROVEMENTS Major classes of property, equipment and improvements consisted of the following: April 2, December 31, 2017 2016 Land $ 123 $ 123 Buildings and leasehold improvements 7,770 7,757 Machinery and equipment 50,146 49,722 Furniture and fixtures 1,968 1,947 Computer hardware and software 5,233 5,223 Construction in process 540 421 Total 65,780 65,193 Less-accumulated depreciation (57,709 ) (57,194 ) Net property, equipment and improvements $ 8,071 $ 7,999 Depreciation expense for property, equipment and improvements was $503 $589 three April 2, 2017 March 27, 2016,

Note 6 - Goodwill, Intangible A

Note 6 - Goodwill, Intangible Assets and Long Term Assets	3 Months Ended
	Apr. 02, 2017
Notes to Financial Statements
Goodwill and Intangible Assets Disclosure [Text Block]	6. GOODWILL, INTANGIBLE ASSETS AND LONG TERM ASSETS Goodwill The following table summarizes the goodwill activity by segment for the three April 2, 2017 March 27, 2016: Battery & Energy Communi- cations Products Systems Total Balance - December 31, 2015 $ 4,790 $ 11,493 $ 16,283 Acquisition of Accutronics 4,407 - 4,407 Effect of foreign currency translation (106 ) - (106 ) Balance – March 27, 2016 9,091 11,493 20,584 Measurement period adjustments 80 - 80 Effect of foreign currency translation (699 ) - (699 ) Balance – December 31, 2016 8,472 11,493 19,965 Effect of foreign currency translation 83 - 83 Balance – April 2, 2017 $ 8,555 $ 11,493 $ 20,048 Intangible Assets The composition of intangible assets was: April 2, 2017 Accumulated Cost Amortization Net Trademarks $ 3,404 $ - $ 3,404 Customer relationships 6,436 4,026 2,410 Patents and technology 5,472 4,458 1,014 Distributor relationships 377 377 - Trade Name 365 46 319 Total intangible assets $ 16,054 $ 8,907 $ 7,147 at December 31, 2016 Accumulated Cost Amortization Net Trademarks $ 3,404 $ - $ 3,404 Customer relationships 6,395 3,975 2,420 Patents and technology 5,455 4,417 1,038 Distributor relationships 377 368 9 Trade Name 359 36 323 Total intangible assets $ 15,990 $ 8,796 $ 7,194 Amortization expense for intangible assets was $105 $137 three April 2, 2017 March 27, 2016, $40 $51 three April 2, 2017 March 27, 2016, $65 $86 three April 2, 2017 March 27, 2016, The change in the cost value of intangible assets from December 31, 2016 April 2, 2017

Note 7 - Revolving Credit Agree

Note 7 - Revolving Credit Agreement	3 Months Ended
	Apr. 02, 2017
Notes to Financial Statements
Debt and Capital Leases Disclosures [Text Block]	7. REVOLVING CREDIT AGREEMENT We have financing through a Revolving Credit, Guaranty and Security Agreement (the “Credit Agreement”) and related security agreements with PNC Bank, National Association (“PNC Bank”), which provides a $20,000 $1,000 may $35,000 six May 24, 2017. Our available borrowing limit under the Credit Facility is based on a borrowing base formula equal to a percentage of accounts receivable, inventory and eligible foreign in-transit inventory. Interest is payable quarterly and accrues on outstanding indebtedness under the Credit Agreement at either a LIBOR-based rate or an alternate base rate, as defined in the Credit Agreement. We pay a quarterly fee on the Credit Facility’s unused availability at 0.375% As of April 2, 2017, $10,789 $20,000 no March 27, 2016, $1,156

Note 8 - Shareholders' Equity

Note 8 - Shareholders' Equity	3 Months Ended
	Apr. 02, 2017
Notes to Financial Statements
Shareholders' Equity and Share-based Payments [Text Block]	8. SHAREHOLDERS’ EQUITY We recorded non-cash stock compensation expense in each period as follows: Three month periods ended April 2, March 27, Stock options $ 36 $ 170 Restricted stock 4 11 Total $ 40 $ 181 Stock Options We have stock options outstanding from various stock-based employee compensation plans for which we record compensation cost relating to share-based payment transactions in our financial statements. As of April 2, 2017, $307 1.32 first 2017: Number of Weighted Weighted Aggregate Outstanding at January 1, 2017 2,323,581 $ 6.22 Granted 65,000 $ 5.31 Exercised (180,334 ) $ 4.11 Forfeited or expired (113,166 ) $ 11.55 Outstanding at April 2, 2017 2,095,081 $ 6.08 3.11 $ 1,502 Vested and expected to vest at April 2, 2017 1,984,765 $ 6.15 3.00 $ 1,403 Exercisable at April 2, 2017 1,265,548 $ 5.07 2.08 $ 1,035 FASB’s guidance for share-based payments requires cash flows from excess tax benefits to be classified as a part of cash flows from financing activities. Excess tax benefits are realized tax benefits from tax deductions for exercised stock options in excess of the deferred tax asset attributable to stock compensation costs for such stock options. We did not first three 2017 2016. three April 2, 2017 March 27, 2016 $741 $14, Restricted Stock Awards In September 2014, 49,200 three $3.24 $7 April 2, 2017.

Note 9 - Income Taxes

Note 9 - Income Taxes	3 Months Ended
	Apr. 02, 2017
Notes to Financial Statements
Income Tax Disclosure [Text Block]	9. INCOME TAXES We use the asset and liability method in accounting for income taxes. Under this method, deferred tax assets and liabilities are determined based on differences between financial reporting and tax basis of assets and liabilities and are measured using the enacted tax rates and laws that are expected to be in effect when the differences are expected to reverse. For the three April 2, 2017 March 27, 2016, $87 $88, Three month periods ended April 2, March 27, Current income tax provision: Foreign $ 21 $ 27 Federal 22 4 State 5 15 Deferred income tax provision 39 42 Total $ 87 $ 88 The deferred income tax provision is primarily due to the recognition of deferred tax liabilities relating to goodwill and certain intangible assets that cannot be predicted to reverse for book purposes during our loss carryforward periods offset by the deferred tax benefit of the amortization of certain intangible assets of Accutronics (U.K.). The current income tax provision is primarily due to the income generated by our foreign operations and estimated U.S. federal alternative minimum taxes. Our effective consolidated tax rates for the three April 2, 2017 March 27, 2016 Three month periods ended April 2, March 27, Income from continuing operations before income taxes (a) $ 1,748 $ 369 Income tax provision (b) 87 88 Effective income tax rate (b/a) 5.0 % 23.8 % The overall effective tax rate is the result of the combination of income and losses in each of our tax jurisdictions, which is particularly influenced by the fact that we have recorded a full reserve against our deferred tax assets pertaining to cumulative historical losses for our U.S. operations and certain foreign subsidiaries, as management does not believe, at this time, that it is more likely than not that we will realize the benefit of these losses. As of December 31, 2016, $70,976 $12,760, $1,704, $12,760, $70,976 2019 2034. As a result of our operations, we file income tax returns in various jurisdictions including U.S. federal, U.S. state and foreign jurisdictions. We are routinely subject to examination by taxing authorities in these various jurisdictions. Our U.S. tax matters for the years 2002 2016 2009 2016

Note 10 - Earnings Per Share

Note 10 - Earnings Per Share	3 Months Ended
	Apr. 02, 2017
Notes to Financial Statements
Earnings Per Share [Text Block]	10. EARNINGS PER SHARE Basic earnings per share (“EPS”) is computed by dividing earnings attributable to the Company’s common shareholders by the weighted-average shares outstanding during the period. Diluted EPS includes the dilutive effect of securities, if any, and is calculated using the treasury stock method. For the three April 2, 2017, 1,180,031 15,900 244,591 additional shares in the calculation of fully diluted earnings per share. For the comparable period ended March 27, 2016, 1,242,230 32,800 342,809 1,015,050 1,051,750 three April 2, 2017 March 27, 2016,

Note 11 - Commitments and Conti

Note 11 - Commitments and Contingencies	3 Months Ended
	Apr. 02, 2017
Notes to Financial Statements
Commitments and Contingencies Disclosure [Text Block]	11. COMMITMENTS AND CONTINGENCIES Purchase Commitments As of April 2, 2017, $329 Product Warranties We estimate future costs associated with expected product failure rates, material usage and service costs in the development of our warranty obligations. Warranty reserves are based on historical experience of warranty claims and generally will be estimated as a percentage of sales over the warranty period. In the event the actual results of these items differ from the estimates, an adjustment to the warranty obligation would be recorded. Changes in our product warranty liability during the first three 2017 2016 Three month periods ended April 2, March 27, Accrued warranty obligations – beginning $ 172 $ 192 Accruals for warranties issued 7 10 Settlements made (24 ) (22 ) Accrued warranty obligations – ending $ 155 $ 180 Contingencies and Legal Matters We are subject to legal proceedings and claims that arise from time to time in the normal course of business. We believe that the final disposition of such matters, other than the matters described below, will not have a material adverse effect on our financial position, results of operations or cash flows. Dreamliner Litigation In July 2013, 787 one A component of the ELT is a battery pack which incorporates Ultralife’s industry-standard lithium manganese dioxide non-rechargeable D-cell. Ultralife has had this cell in production since 2001, C142. On May 4, 2015, 2013 $42,000 At this time, we believe that there is not a reasonable possibility that this incident will result in a material financial exposure to the Company. Arista Power Litigation Since September 2011, January 12, 2016, 7

Note 12 - Business Segment Info

Note 12 - Business Segment Information	3 Months Ended
	Apr. 02, 2017
Notes to Financial Statements
Segment Reporting Disclosure [Text Block]	12. BUSINESS SEGMENT INFORMATION We report our results in two 9 The components of segment performance were as follows: Three-Month Period Ended April 2, 2017: Battery & Communi- Corporate Total Revenues $ 17,479 $ 4,556 $ - $ 22,035 Segment contribution 4,930 1,960 (5,049 ) 1,841 Interest, financing and miscellaneous expense, net (93 ) (93 ) Tax provision (87 ) (87 ) Non-Controlling interest (6 ) (6 ) Net income attributable to Ultralife 1,655 Total assets $ 39,734 $ 32,039 $ 15,809 $ 87,582 Three-Month Period Ended March 27, 2016: Battery & Communi- Corporate Total Revenues $ 16,440 $ 4,393 $ - $ 20,833 Segment contribution 5,217 1,188 (5,924 ) 482 Interest, financing and miscellaneous expense, net (113 ) (113 ) Tax provision (88 ) (88 ) Discontinued operations Non-Controlling interest 18 18 Net income attributable to Ultralife 299 Total assets $ 46,898 $ 33,720 $ 5,025 $ 85,643

Note 13 - Recent Accounting Pro

Note 13 - Recent Accounting Pronouncements and Developments	3 Months Ended
	Apr. 02, 2017
Notes to Financial Statements
New Accounting Pronouncements and Changes in Accounting Principles [Text Block]	1 3 . RECENT ACCOUNTING PRONOUNCEMENTS AND DEVELOPMENTS The Company adopted the following recently issued accounting standards during the quarter ended April 2, 2017: ● In November 2015, 2015 17, 2015 17”). 2015 17 2015 17 December 15, 2016. first 2017, 2015 17 $ 94 April 2, 2017 December 31, 2016. 2015 17 ● In March 2016, 2016 09, 718) 2016 09"). 2016 09 2016 09 December 15, 2016. first 2017 $1.2 ● In July 2015, 2015 11, December 15, 2016, We adopted the new accounting standard in the first 2017. There have been no developments to recently issued accounting standards, including the expected dates of adoption and estimated effects on the Company’s consolidated financial statements and disclosures, from those disclosed in the Company’s 2016 10 ● In January 2017, 2017 04, 350) 2017 04 two

Note 2 - Acquisition (Tables)

Note 2 - Acquisition (Tables)	3 Months Ended
	Apr. 02, 2017
Notes Tables
Schedule of Recognized Identified Assets Acquired and Liabilities Assumed [Table Text Block]	Cash $ 1,304 Accounts Receivable 1,344 Inventory 2,167 Prepaids and Other Current Assets 584 Property, Plant & Equipment 269 Identifiable Intangible Assets 4,374 Goodwill 4,487 Accounts Payable (1,009 ) Accrued Expenses (1,136 ) Income Taxes Payable (111 ) Non-Current Liabilities (209 ) Deferred Income Taxes (74 ) Deferred Income Taxes on Intangible Assets (829 ) Total Consideration $ 11,161
Business Acquisition, Pro Forma Information [Table Text Block]	Three Months Ended March 27, 2016 Revenue $ 20,833 Operating income $ 775 Net income attributable to Ultralife $ 607 Earnings per share: Basic $ .04 Diluted $ .04

Note 4 - Inventories (Tables)

Note 4 - Inventories (Tables)	3 Months Ended
	Apr. 02, 2017
Notes Tables
Schedule of Inventory, Current [Table Text Block]	April 2, December 31, 2017 2016 Raw materials $ 13,157 $ 14,482 Work in process 1,427 986 Finished goods 8,145 7,988 Total $ 22,729 $ 23,456

Note 5 - Property, Equipment 21

Note 5 - Property, Equipment and Improvements (Tables)	3 Months Ended
	Apr. 02, 2017
Notes Tables
Property, Plant and Equipment [Table Text Block]	April 2, December 31, 2017 2016 Land $ 123 $ 123 Buildings and leasehold improvements 7,770 7,757 Machinery and equipment 50,146 49,722 Furniture and fixtures 1,968 1,947 Computer hardware and software 5,233 5,223 Construction in process 540 421 Total 65,780 65,193 Less-accumulated depreciation (57,709 ) (57,194 ) Net property, equipment and improvements $ 8,071 $ 7,999

Note 6 - Goodwill, Intangible22

Note 6 - Goodwill, Intangible Assets and Long Term Assets (Tables)	3 Months Ended
	Apr. 02, 2017
Notes Tables
Schedule of Goodwill [Table Text Block]	Battery & Energy Communi- cations Products Systems Total Balance - December 31, 2015 $ 4,790 $ 11,493 $ 16,283 Acquisition of Accutronics 4,407 - 4,407 Effect of foreign currency translation (106 ) - (106 ) Balance – March 27, 2016 9,091 11,493 20,584 Measurement period adjustments 80 - 80 Effect of foreign currency translation (699 ) - (699 ) Balance – December 31, 2016 8,472 11,493 19,965 Effect of foreign currency translation 83 - 83 Balance – April 2, 2017 $ 8,555 $ 11,493 $ 20,048
Schedule of Finite-Lived Intangible Assets [Table Text Block]	April 2, 2017 Accumulated Cost Amortization Net Trademarks $ 3,404 $ - $ 3,404 Customer relationships 6,436 4,026 2,410 Patents and technology 5,472 4,458 1,014 Distributor relationships 377 377 - Trade Name 365 46 319 Total intangible assets $ 16,054 $ 8,907 $ 7,147 at December 31, 2016 Accumulated Cost Amortization Net Trademarks $ 3,404 $ - $ 3,404 Customer relationships 6,395 3,975 2,420 Patents and technology 5,455 4,417 1,038 Distributor relationships 377 368 9 Trade Name 359 36 323 Total intangible assets $ 15,990 $ 8,796 $ 7,194

Note 8 - Shareholders' Equity (

Note 8 - Shareholders' Equity (Tables)	3 Months Ended
	Apr. 02, 2017
Notes Tables
Disclosure of Share-based Compensation Arrangements by Share-based Payment Award [Table Text Block]	Three month periods ended April 2, March 27, Stock options $ 36 $ 170 Restricted stock 4 11 Total $ 40 $ 181
Share-based Compensation, Stock Options, Activity [Table Text Block]	Number of Weighted Weighted Aggregate Outstanding at January 1, 2017 2,323,581 $ 6.22 Granted 65,000 $ 5.31 Exercised (180,334 ) $ 4.11 Forfeited or expired (113,166 ) $ 11.55 Outstanding at April 2, 2017 2,095,081 $ 6.08 3.11 $ 1,502 Vested and expected to vest at April 2, 2017 1,984,765 $ 6.15 3.00 $ 1,403 Exercisable at April 2, 2017 1,265,548 $ 5.07 2.08 $ 1,035

Note 9 - Income Taxes (Tables)

Note 9 - Income Taxes (Tables)	3 Months Ended
	Apr. 02, 2017
Notes Tables
Schedule of Components of Income Tax Expense (Benefit) [Table Text Block]	Three month periods ended April 2, March 27, Current income tax provision: Foreign $ 21 $ 27 Federal 22 4 State 5 15 Deferred income tax provision 39 42 Total $ 87 $ 88
Schedule of Effective Income Tax Rate Reconciliation [Table Text Block]	Three month periods ended April 2, March 27, Income from continuing operations before income taxes (a) $ 1,748 $ 369 Income tax provision (b) 87 88 Effective income tax rate (b/a) 5.0 % 23.8 %

Note 11 - Commitments and Con25

Note 11 - Commitments and Contingencies (Tables)	3 Months Ended
	Apr. 02, 2017
Notes Tables
Schedule of Product Warranty Liability [Table Text Block]	Three month periods ended April 2, March 27, Accrued warranty obligations – beginning $ 172 $ 192 Accruals for warranties issued 7 10 Settlements made (24 ) (22 ) Accrued warranty obligations – ending $ 155 $ 180

Note 12 - Business Segment In26

Note 12 - Business Segment Information (Tables)	3 Months Ended
	Apr. 02, 2017
Notes Tables
Schedule of Segment Reporting Information, by Segment [Table Text Block]	Battery & Communi- Corporate Total Revenues $ 17,479 $ 4,556 $ - $ 22,035 Segment contribution 4,930 1,960 (5,049 ) 1,841 Interest, financing and miscellaneous expense, net (93 ) (93 ) Tax provision (87 ) (87 ) Non-Controlling interest (6 ) (6 ) Net income attributable to Ultralife 1,655 Total assets $ 39,734 $ 32,039 $ 15,809 $ 87,582 Battery & Communi- Corporate Total Revenues $ 16,440 $ 4,393 $ - $ 20,833 Segment contribution 5,217 1,188 (5,924 ) 482 Interest, financing and miscellaneous expense, net (113 ) (113 ) Tax provision (88 ) (88 ) Discontinued operations Non-Controlling interest 18 18 Net income attributable to Ultralife 299 Total assets $ 46,898 $ 33,720 $ 5,025 $ 85,643

Note 2 - Acquisition (Details T

Note 2 - Acquisition (Details Textual) - Accutronics Limited [Member] £ in Thousands, $ in Thousands	Feb. 24, 2016USD ($)	Feb. 24, 2016GBP (£)	Jan. 13, 2016USD ($)	Jan. 13, 2016GBP (£)	Mar. 27, 2016USD ($)
Payments to Acquire Businesses, Gross			$ 10,976	£ 7,575
Payments to Acquire Businesses, Net of Cash Acquired Working Capital Adjustment | £		£ 133
Business Combination, Consideration Transferred	$ 11,161	£ 7,708
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Intangible Assets, Other than Goodwill			$ 4,374
Business Combination, Acquisition Related Costs					$ 251
Inventory Adjustments					91
Business Combination, Pro Forma Information, Revenue of Acquiree since Acquisition Date, Actual					2,486
Business Combination, Pro Forma Information, Earnings or Loss of Acquiree since Acquisition Date, Actual					$ (275)
Minimum [Member]
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life	10 years	10 years
Maximum [Member]
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life	15 years	15 years
Customer Contracts and Relationships [Member]
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Intangible Assets, Other than Goodwill	$ 2,821
Intellectual Property [Member]
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Intangible Assets, Other than Goodwill	1,132
Trade Names [Member]
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Intangible Assets, Other than Goodwill	$ 421

Note 2 - Acquisition - Schedule

Note 2 - Acquisition - Schedule of Recognized Identified Assets Acquired and Liabilities Assumed (Details) - USD ($) $ in Thousands	Apr. 02, 2017	Dec. 31, 2016	Mar. 27, 2016	Jan. 13, 2016	Dec. 31, 2015
Goodwill	$ 20,048	$ 19,965	$ 20,584		$ 16,283
Accutronics Limited [Member]
Cash				$ 1,304
Accounts Receivable				1,344
Inventory				2,167
Prepaids and Other Current Assets				584
Property, Plant & Equipment				269
Identifiable Intangible Assets				4,374
Goodwill				4,487
Accounts Payable				(1,009)
Accrued Expenses				(1,136)
Income Taxes Payable				(111)
Non-Current Liabilities				(209)
Deferred Income Taxes				(74)
Deferred Income Taxes on Intangible Assets				(829)
Total Consideration				$ 11,161

Note 2 - Acquisition - Unaudite

Note 2 - Acquisition - Unaudited Pro Forma Information (Details) $ / shares in Units, $ in Thousands	3 Months Ended
	Mar. 27, 2016USD ($)$ / shares
Revenue	$ 20,833
Operating income	775
Net income attributable to Ultralife	$ 607
Basic (in dollars per share) | $ / shares	$ 0.04
Diluted (in dollars per share) | $ / shares	$ 0.04

Note 3 - Share Repurchase Pro30

Note 3 - Share Repurchase Program (Details Textual) - USD ($) $ in Thousands	3 Months Ended	25 Months Ended
	Mar. 27, 2016	Jun. 02, 2016	May 01, 2014
Treasury Stock, Shares, Acquired	0	2,592,095
Treasury Stock, Value, Acquired, Cost Method		$ 10,480
Maximum [Member]
Stock Repurchase Program, Number of Shares Authorized to be Repurchased		3,400,000	1,800,000

Note 4 - Inventories - Composit

Note 4 - Inventories - Composition of Inventories (Details) - USD ($) $ in Thousands	Apr. 02, 2017	Dec. 31, 2016
Raw materials	$ 13,157	$ 14,482
Work in process	1,427	986
Finished goods	8,145	7,988
Total	$ 22,729	$ 23,456

Note 5 - Property, Equipment 32

Note 5 - Property, Equipment and Improvements (Details Textual) - USD ($) $ in Thousands	3 Months Ended
	Apr. 02, 2017	Mar. 27, 2016
Depreciation	$ 503	$ 589

Note 5 - Property, Equipment 33

Note 5 - Property, Equipment and Improvements - Major Classes of Property, Equipment and Improvements (Details) - USD ($) $ in Thousands	Apr. 02, 2017	Dec. 31, 2016
Property, Plant, and Equipment, Gross	$ 65,780	$ 65,193
Less-accumulated depreciation	(57,709)	(57,194)
Net property, equipment and improvements	8,071	7,999
Land [Member]
Property, Plant, and Equipment, Gross	123	123
Building and Building Improvements [Member]
Property, Plant, and Equipment, Gross	7,770	7,757
Machinery and Equipment [Member]
Property, Plant, and Equipment, Gross	50,146	49,722
Furniture and Fixtures [Member]
Property, Plant, and Equipment, Gross	1,968	1,947
Computer Equipment [Member]
Property, Plant, and Equipment, Gross	5,233	5,223
Construction in Progress [Member]
Property, Plant, and Equipment, Gross	$ 540	$ 421

Note 6 - Goodwill, Intangible34

Note 6 - Goodwill, Intangible Assets and Long Term Assets (Details Textual) - USD ($) $ in Thousands	3 Months Ended
	Apr. 02, 2017	Mar. 27, 2016
Amortization of Intangible Assets	$ 105	$ 137
Research and Development Expense [Member]
Amortization of Intangible Assets	40	51
Selling, General and Administrative Expenses [Member]
Amortization of Intangible Assets	$ 65	$ 86

Note 6 - Goodwill, Intangible35

Note 6 - Goodwill, Intangible Assets and Long Term Assets - Goodwill Activity by Segment (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Apr. 02, 2017	Mar. 27, 2016	Dec. 31, 2016
Balance	$ 19,965	$ 16,283	$ 20,584
Acquisition of Accutronics		4,407	80
Effect of foreign currency translation	83	(106)	(699)
Balance	20,048	20,584	19,965
Battery & Energy Products Segment [Member]
Balance	8,472	4,790	9,091
Acquisition of Accutronics		4,407	80
Effect of foreign currency translation	83	(106)	(699)
Balance	8,555	9,091	8,472
Communications Systems Segment [Member]
Balance	11,493	11,493	11,493
Acquisition of Accutronics
Effect of foreign currency translation
Balance	$ 11,493	$ 11,493	$ 11,493

Note 6 - Goodwill, Intangible36

Note 6 - Goodwill, Intangible Assets and Long Term Assets - Composition of Intangible Assets (Details) - USD ($) $ in Thousands	Apr. 02, 2017	Dec. 31, 2016
Cost	$ 16,054	$ 15,990
Accumulated Amortization	8,907	8,796
Net	7,147	7,194
Trademarks [Member]
Cost	3,404	3,404
Accumulated Amortization
Net	3,404	3,404
Customer Relationships [Member]
Cost	6,436	6,395
Accumulated Amortization	4,026	3,975
Net	2,410	2,420
Patents and Technology [Member]
Cost	5,472	5,455
Accumulated Amortization	4,458	4,417
Net	1,014	1,038
Distributor Relationships [Member]
Cost	377	377
Accumulated Amortization	377	368
Net		9
Trade Names [Member]
Cost	365	359
Accumulated Amortization	46	36
Net	$ 319	$ 323

Note 7 - Revolving Credit Agr37

Note 7 - Revolving Credit Agreement (Details Textual) - PNC Bank [Member] - USD ($) $ in Thousands	3 Months Ended
	Apr. 02, 2017	Mar. 27, 2016
Revolving Credit Facility [Member]
Line of Credit Facility, Maximum Borrowing Capacity	$ 20,000
Line of Credit Facility Maximum Borrowing Capacity May Be Increased to	$ 35,000
Line of Credit Facility, Unused Capacity, Commitment Fee Percentage	0.375%
Long-term Line of Credit		$ 1,156
Letters of Credit Outstanding, Amount	$ 0
Letter of Credit [Member]
Line of Credit Facility, Maximum Borrowing Capacity	1,000
Line of Credit Facility, Remaining Borrowing Capacity	10,789
Long-term Line of Credit	$ 0

Note 8 - Shareholders' Equity38

Note 8 - Shareholders' Equity (Details Textual) - USD ($) $ / shares in Units, $ in Thousands	1 Months Ended	3 Months Ended
	Sep. 30, 2014	Apr. 02, 2017	Mar. 27, 2016
Employee Service Share-based Compensation, Nonvested Awards, Compensation Not yet Recognized, Stock Options		$ 307
Proceeds from Stock Options Exercised		741	$ 14
Excess Tax Benefit from Share-based Compensation, Financing Activities		$ 0	$ 0
Employee Stock Option [Member]
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized, Period for Recognition		1 year 116 days
Restricted Stock [Member] | 2014 Long-term Incentive Plan [Member]
Stock Issued During Period, Shares, Restricted Stock Award, Gross	49,200
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period	3 years
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period, Weighted Average Grant Date Fair Value	$ 3.24
Employee Service Share-based Compensation, Nonvested Awards, Compensation Not yet Recognized, Share-based Awards Other than Options		$ 7

Note 8 - Shareholders' Equity -

Note 8 - Shareholders' Equity - Non-cash Stock Compensation Expense (Details) - USD ($) $ in Thousands	3 Months Ended
	Apr. 02, 2017	Mar. 27, 2016
Stock-based comepensation expense	$ 40	$ 181
Employee Stock Option [Member]
Stock-based comepensation expense	36	170
Performance Shares [Member]
Stock-based comepensation expense	$ 4	$ 11

Note 8 - Shareholders' Equity40

Note 8 - Shareholders' Equity - Stock Option Activity (Details) $ / shares in Units, $ in Thousands	3 Months Ended
	Apr. 02, 2017USD ($)$ / sharesshares
Options outstanding (in shares) | shares	2,323,581
Options outstanding - weighted average exercise price (in dollars per share) | $ / shares	$ 6.22
Granted (in shares) | shares	65,000
Granted - weighted average exercise price (in dollars per share) | $ / shares	$ 5.31
Exercised (in shares) | shares	(180,334)
Exercised - weighted average exercise price (in dollars per share) | $ / shares	$ 4.11
Forfeited or expired (in shares) | shares	(113,166)
Forfeited or expired - weighted average exercise price (in dollars per share) | $ / shares	$ 11.55
Options outstanding (in shares) | shares	2,095,081
Options outstanding - weighted average exercise price (in dollars per share) | $ / shares	$ 6.08
Options outstanding - weighted average remaining contractual term (Year)	3 years 40 days
Options outstanding - aggregate intrinsic value | $	$ 1,502
Vested and Expected to Vest (in shares) | shares	1,984,765
Options vested and expected to vest - weighted average exercise price (in dollars per share) | $ / shares	$ 6.15
Options vested and expected to vest - weighted average remaining contractual term (Year)	3 years
Options vested and expected to vest - aggregate intrinsic value | $	$ 1,403
Options exercisable (in shares) | shares	1,265,548
Exercisable - weighted average exercise price (in dollars per share) | $ / shares	$ 5.07
Exercisable - weighted average remaining contractual term (Year)	2 years 29 days
Exercisable - aggregate intrinsic value | $	$ 1,035

Note 9 - Income Taxes (Details

Note 9 - Income Taxes (Details Textual) - USD ($) $ in Thousands	3 Months Ended
	Apr. 02, 2017	Mar. 27, 2016	Dec. 31, 2016
Income Tax Expense (Benefit)	$ 87	$ 88
Domestic Tax Authority [Member]
Operating Loss Carryforwards			$ 70,976
Tax Credit Carryforward, Amount			1,704
Domestic Tax Authority [Member] | Earliest Tax Year [Member] | Internal Revenue Service (IRS) [Member]
Open Tax Year	2,002
Domestic Tax Authority [Member] | Latest Tax Year [Member] | Internal Revenue Service (IRS) [Member]
Open Tax Year	2,016
Foreign Tax Authority [Member]
Operating Loss Carryforwards			$ 12,760
Foreign Tax Authority [Member] | Earliest Tax Year [Member]
Open Tax Year	2,009
Foreign Tax Authority [Member] | Latest Tax Year [Member]
Open Tax Year	2,016
State and Local Jurisdiction [Member] | Earliest Tax Year [Member]
Open Tax Year	2,002
State and Local Jurisdiction [Member] | Latest Tax Year [Member]
Open Tax Year	2,016

Note 9 - Income Taxes - Income

Note 9 - Income Taxes - Income Tax Expense (Details) - USD ($) $ in Thousands	3 Months Ended
	Apr. 02, 2017	Mar. 27, 2016
Foreign	$ 21	$ 27
Federal	22	4
State	5	15
Deferred income tax provision	39	42
Total	$ 87	$ 88

Note 9 - Income Taxes - Effecti

Note 9 - Income Taxes - Effective Consolidated Tax Rate (Details) - USD ($) $ in Thousands	3 Months Ended
	Apr. 02, 2017	Mar. 27, 2016
Income from continuing operations before income taxes (a)	$ 1,748	$ 369
Income tax provision (b)	$ 87	$ 88
Effective income tax rate (b/a)	5.00%	23.80%

Note 10 - Earnings Per Share (D

Note 10 - Earnings Per Share (Details Textual) - shares	3 Months Ended
	Apr. 02, 2017	Mar. 27, 2016
Dilutive Securities Included in Computation of Earnings Per Share Amount	1,180,031	1,242,230
Dilutive Securities Included in Computation of Earnings Per Share Amount Restricted Stock	15,900	32,800
Incremental Common Shares Attributable to Dilutive Effect of Share-based Payment Arrangements	244,591	342,809
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount	1,015,050	1,051,750

Note 11 - Commitments and Con45

Note 11 - Commitments and Contingencies (Details Textual) - USD ($) $ in Thousands	May 04, 2015	Apr. 02, 2017
Loss Contingency, Damages Sought, Value	$ 42,000
Capital Addition Purchase Commitments [Member]
Long-term Purchase Commitment, Amount		$ 329

Note 11 - Commitments and Con46

Note 11 - Commitments and Contingencies - Changes in Produce Warranty Liability (Details) - USD ($) $ in Thousands	3 Months Ended
	Apr. 02, 2017	Mar. 27, 2016
Accrued warranty obligations – beginning	$ 172	$ 192
Accruals for warranties issued	7	10
Settlements made	(24)	(22)
Accrued warranty obligations – ending	$ 155	$ 180

Note 12 - Business Segment In47

Note 12 - Business Segment Information (Details Textual)	3 Months Ended
	Apr. 02, 2017
Number of Operating Segments	2

Note 12 - Business Segment In48

Note 12 - Business Segment Information - Segment Activity (Details) - USD ($) $ in Thousands	3 Months Ended
	Apr. 02, 2017	Mar. 27, 2016	Dec. 31, 2016
Revenues	$ 22,035	$ 20,833
Segment contribution	1,841	482
Interest, financing and miscellaneous expense, net	(93)	(113)
Tax provision	(87)	(88)
Non-Controlling interest	(6)	18
Net income attributable to Ultralife	1,655	299
Total assets	87,582	85,643	$ 84,744
Battery & Energy Products Segment [Member]
Revenues	17,479	16,440
Segment contribution	4,930	5,217
Total assets	39,734	46,898
Communications Systems Segment [Member]
Revenues	4,556	4,393
Segment contribution	1,960	1,188
Total assets	32,039	33,720
Corporate Segment [Member]
Revenues
Segment contribution	(5,049)	(5,924)
Interest, financing and miscellaneous expense, net	(93)	(113)
Tax provision	(87)	(88)
Non-Controlling interest	(6)	18
Total assets	$ 15,809	$ 5,025

Note 13 - Recent Accounting P49

Note 13 - Recent Accounting Pronouncements and Developments (Details Textual)	3 Months Ended
	Apr. 02, 2017USD ($)
Reclassification of Current Deferred Tax Assets to Noncurrent [Member]
Current Period Reclassification Adjustment	$ 94,000
Reclassification of Current Deferred Tax Assets to Noncurrent [Member] | December 31, 2016 [Member]
Prior Period Reclassification Adjustment	94,000
Accounting Standards Update 2016-09 [Member]
Deferred Tax Assets, Gross	1,200
Deferred Tax Assets, Valuation Allowance	$ 1,200