Exhibit 99.1
Ultralife Batteries Reports First Quarter Results
NEWARK, N.Y.--(BUSINESS WIRE)--May 5, 2005--Ultralife Batteries,
Inc. (NASDAQ: ULBI) today reported results for the first quarter ended
April 2, 2005. Revenues for the quarter were $15.4 million compared to
$27.0 million for the comparable quarter last year. The net loss for
the first quarter of 2005 was $1.6 million, or $0.11 per share,
compared with net income of $3.2 million, or $0.22 per diluted share,
in the same quarter in 2004.
The first quarter revenue decline reflects lower shipments of
BA-5390 batteries to the U.S. military, as anticipated, mostly related
to delays in contract awards resulting from a shift in procurement
responsibility within the military from the U.S. Army/CECOM to the
Defense Logistics Agency (DLA). This decrease was partially offset by
higher sales of 9-volt, small cylindrical and rechargeable batteries.
Gross margins were 13% compared to 23% in the same quarter last
year, in line with reduced production volumes. Operating expenses were
$3.7 million, a $0.8 million increase over last year's first quarter,
driven by higher costs for new product development, higher external
audit fees related to requirements under the Sarbanes-Oxley Act, and
added general and administrative resources needed to support the
company's growth objectives. Operating loss for the quarter was $1.7
million versus operating income of $3.4 million for the same period
last year.
"The financial results for the first quarter are in line with our
guidance, and we are on track to resume top- and bottom-line growth
during the rest of the year," said John D. Kavazanjian, president and
chief executive officer. "Order activity is picking up as the U.S.
Government restocks inventories and, building on the fourth quarter
successes, we are participating in a growing number of new device
projects with military contractors. Ultralife's position with the U.S.
military remains strong, and we are now working on development
projects for nearly all the next-generation portable device
applications. On the commercial front, we are achieving design wins in
key target markets while design activity continues to increase with a
growing percentage of opportunities coming from prospective
international customers."
Outlook
For the second quarter ending July 2, 2005, management currently
projects revenues of approximately $28.0 million and operating income
of approximately $2.5 million, assuming that the company receives
additional orders from the U.S. military for delivery of BA-5390
batteries, either under the Next Gen II Phase IV contract or other
urgent buy contracts.
For the full year of 2005, management continues to expect revenue
growth in the range of 10% to 20% over 2004. Order activity and
shipments are expected to increase throughout the year, as commercial
orders take hold and the military business stabilizes. Growth in the
commercial business is expected to result from continued success in
key target markets, such as automotive telematics, search & rescue,
and medical. This revenue growth target also assumes order activity
from the U.S. military in conjunction with the award of the Next Gen
II Phase IV contract and other contract activity. Operating income in
2005 is expected to show steady growth throughout the year, moving
toward the company's near-term operating margin target of 15% by
year-end.
About Ultralife Batteries, Inc.
Ultralife is a global provider of power solutions for diverse
applications. The company develops, manufactures and markets a wide
range of non-rechargeable and rechargeable batteries, charging systems
and accessories for use in military, industrial and consumer portable
electronic products. Through its range of standard products and
engineered solutions, Ultralife is able to provide the next generation
of power systems. Industrial, retail and government customers include
General Dynamics, Philips Medical Systems, Energizer, Kidde Safety,
Lowe's, Radio Shack and the national defense agencies of the United
States and United Kingdom, among others.
Ultralife's headquarters, principal manufacturing and research
facilities are in Newark, New York, near Rochester. Ultralife (UK)
Ltd., a second manufacturing facility, is located in Abingdon,
England. Both facilities are ISO-9001 certified. Detailed information
on Ultralife is available at the Company's web site,
www.ultralifebatteries.com.
This press release contains forward-looking statements based on
current expectations that involve a number of risks and uncertainties.
The potential risks and uncertainties that could cause actual results
to differ materially include: loss of business with the U.S.
government, worsening global economic conditions, world events,
increased competitive environment and pricing pressures, disruptions
related to restructuring actions and delays. Further information on
these factors and other factors that could affect Ultralife's
financial results is included in Ultralife's Securities and Exchange
Commission (SEC) filings, including the latest Annual Report on Form
10-K.
Conference Call Information
Investors are invited to listen to a live webcast of the
conference call at 10:00 a.m. ET on May 5 at
http://investor.ultralifebatteries.com. To listen to the live call,
please go to the web site at least fifteen minutes early to download
and install any necessary audio software. For those who cannot listen
to the live broadcast, a replay of the webcast will be available
shortly after the call at the same location for 90 days. Investors may
also listen to a telephone replay of the conference call by dialing
888-203-1112, Reservation #2041456, starting at 1:00 p.m. ET May 5
until 1:00 p.m. ET May 19.
Ultralife(R) is a registered trademark of Ultralife Batteries,
Inc.
ULTRALIFE BATTERIES, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
(In Thousands, Except Per Share Amounts)
(Unaudited)
---------------------------------------------------------------------
Three-Month Periods Ended
April 2, March 27,
2005 2004
------------ ------------
Revenues:
Non-rechargeable products $12,808 $25,322
Rechargeable products 2,128 1,374
Technology contracts 427 292
------------ ------------
Total revenues 15,363 26,988
Cost of products sold:
Non-rechargeable products 10,868 18,548
Rechargeable products 2,077 1,859
Technology contracts 395 249
------------ ------------
Total cost of products sold 13,340 20,656
------------ ------------
Gross margin 2,023 6,332
Operating expenses:
Research and development 846 503
Selling, general, and administrative 2,901 2,471
------------ ------------
Total operating expenses 3,747 2,974
------------ ------------
Operating (loss)/income (1,724) 3,358
Other income (expense):
Interest income 60 20
Interest expense (193) (125)
Miscellaneous (3) 61
------------ ------------
(Loss)/income before income taxes (1,860) 3,314
------------ ------------
Income tax (benefit)/provision-current (17) 79
Income tax benefit-deferred (293) -
------------ ------------
Total income taxes (310) 79
------------ ------------
Net (loss)/income $(1,550) $3,235
============ ============
(Loss)/earnings per share - basic $(0.11) $0.23
============ ============
(Loss)/earnings per share - diluted $(0.11) $0.22
============ ============
Weighted average shares outstanding - basic 14,376 13,772
============ ============
Weighted average shares outstanding -
diluted 14,376 14,890
============ ============
ULTRALIFE BATTERIES, INC.
CONSOLIDATED BALANCE SHEETS
(In Thousands, Except Per Share Amounts)
(unaudited)
- ----------------------------------------------------------------------
April 2, December 31,
ASSETS 2005 2004
-------- ------------
Current assets:
Cash and investments $10,711 $11,529
Trade accounts receivable, net 9,368 8,585
Inventories 15,943 13,938
Prepaid expenses and other current assets 4,835 6,131
-------- ------------
Total current assets 40,857 40,183
Property and equipment 19,851 20,202
Other assets 21,368 20,749
-------- ------------
Total Assets $82,076 $81,134
======== ============
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities:
Short-term debt and current portion of long-
term debt $2,219 $2,390
Accounts payable 5,154 3,545
Other current liabilities 4,594 3,603
-------- ------------
Total current liabilities 11,967 9,538
-------- ------------
Long-term liabilities:
Long-term debt and capital lease obligations 6,548 7,215
Other long-term liabilities 575 756
-------- ------------
Total long-term liabilities 7,123 7,971
-------- ------------
Shareholders' equity:
Common stock, par value $0.10 per share 1,514 1,502
Capital in excess of par value 128,231 127,299
Accumulated other comprehensive income (638) (605)
Accumulated deficit (63,743) (62,193)
-------- ------------
65,364 66,003
Less --Treasury stock, at cost 2,378 2,378
-------- ------------
Total shareholders' equity 62,986 63,625
-------- ------------
Total Liabilities and Shareholders' Equity $82,076 $81,134
======== ============
CONTACT: Ultralife Batteries, Inc.
Robert W. Fishback, 315-332-7100
bfishback@ulbi.com
or
Investor Relations Contact:
Lippert/Heilshorn & Associates, Inc.
Jody Burfening, 212-838-3777
jburfening@lhai.com
or
Media Contact:
Lippert/Heilshorn & Associates, Inc.
Chenoa Taitt, 212-201-6635
ctaitt@lhai.com