Exhibit 99.1
Ultralife Batteries Reports First Quarter Results
Revenues Rise 76% Over Same Period Last Year
NEWARK, N.Y.--(BUSINESS WIRE)--May 3, 2007--Ultralife Batteries,
Inc. (NASDAQ: ULBI) reported record quarterly revenues of $32.3
million, an increase of 76% over the $18.3 million reported in the
same three-month period in 2006. Operating income for the first
quarter of 2007 was $0.6 million compared with $0.2 million a year
ago.
Revenues in the first quarter of 2007 rose $14.0 million over the
first quarter of 2006, primarily due to sales growth across most
product lines, in addition to the contribution of businesses acquired
last year. As a percentage of revenues, gross margins for the first
quarter of 2007 were 23%. Operating expenses totaled $6.9 million and
included $1.7 million of additional expenses related to last year's
acquisitions, and $0.5 million of intangible asset amortization.
Excluding these items, operating expenses rose $1.0 million over the
$3.7 million reported in the first quarter last year due to increased
corporate costs required to operate a larger, more diverse business.
Net interest expense was $0.6 million in the first quarter of 2007, up
from $0.2 million reported in the prior year due to higher outstanding
debt resulting from acquisition activity. Net loss for the first
quarter of 2007 was $36,000, or $0.00 per common share, compared to
net income of $140,000, or $0.01 per common share, for the same
quarter in 2006.
"Ultralife executed well in the first quarter, delivering strong
year-over-year revenue growth across all areas of our business," said
John D. Kavazanjian, Ultralife's president and chief executive
officer. "As further evidence of our reduced dependence on the U.S.
Department of Defense, sales of standard military batteries under
contract accounted for 9% of total revenue. In addition, we are
succeeding in our efforts to aggressively drive sales of
communications accessories, with revenues reaching $8.5 million,
nearly double the level reported in the fourth quarter.
"Operationally, we returned to planned efficiencies in our 9-volt
operations and utilized a significant portion of premium cost
inventory thanks to strong sales of communications accessories,"
Kavazanjian continued. "Although these actions improved our cost
structure somewhat, we have more work ahead to lower our cost base. We
are continuing to identify areas where we can boost productivity,
increase gross margins through cost-effective sourcing of materials
for manufacturing communications accessories, and further leverage
engineering and sales resources."
Kavazanjian concluded, "The first quarter's solid sales reinforce
our conviction that the prospects for growth have never been better.
We intend to continue to capitalize on the many opportunities in the
government/defense and commercial markets, leveraging our broad
product portfolio, global distribution network and growing reputation
for engineering skill among prime contractors. Through these efforts,
coupled with our operational improvements, we are optimistic that we
will post top- and bottom-line growth in 2007."
Outlook
Management is projecting revenue between $32 million and $34
million for its second quarter ending June 30, 2007, largely based on
a strong backlog of orders and the company's anticipated delivery
schedules. Based on this revenue estimate, management anticipates
reporting operating income in the range of $0.8 million to $1.2
million, inclusive of approximately $1.1 million of non-cash expenses
related to stock-based compensation and intangible asset amortization.
About Ultralife Batteries, Inc.
Ultralife is a global provider of high-energy power solutions and
communications accessories for diverse applications. The company
develops, manufactures and markets a wide range of non-rechargeable
and rechargeable batteries, charging systems and accessories including
power supplies, amplifiers, amplified speakers, equipment mounts, case
equipment and integrated communication systems for markets including
defense, commercial and consumer portable electronics. Through its
portfolio of standard products and engineered solutions, Ultralife is
at the forefront of providing the next generation of power systems and
accessories. Defense, commercial and retail customers include: General
Dynamics, Philips Medical Systems, General Motors, Energizer, Kidde
Safety, Lowe's, Radio Shack and the national defense agencies of the
United States, United Kingdom, Germany, Australia and New Zealand,
among others.
Ultralife's headquarters, principal manufacturing and research
facilities are in Newark, New York, near Rochester. Ultralife's three
other operating units are: Ultralife Batteries (UK) Ltd., in Abingdon,
England; McDowell Research in Waco, Texas; and ABLE New Energy in
Shenzhen, China. Detailed information on Ultralife is available at:
www.ultralifebatteries.com.
This press release may contain 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: Worsening global economic conditions,
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 3, 2007 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 1789441, during the period starting at 1:00
p.m. ET May 3 and ending at 1:00 p.m. ET May 10, 2007.
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
March 31, April 1,
2007 2006
------------- ----------
Revenues:
Non-rechargeable products $ 18,158 $ 15,645
Rechargeable products 5,529 2,565
Communications accessories 8,491 -
Technology contracts 142 109
------------- ----------
Total revenues 32,320 18,319
Cost of products sold:
Non-rechargeable products 13,610 12,323
Rechargeable products 4,167 1,869
Communications accessories 6,971 -
Technology contracts 71 157
------------- ----------
Total cost of products sold 24,819 14,349
------------- ----------
Gross margin 7,501 3,970
Operating expenses:
Research and development 1,614 960
Selling, general, and administrative 5,296 2,782
------------- ----------
Total operating expenses 6,910 3,742
------------- ----------
Operating income /(loss) 591 228
Other income (expense):
Interest income 14 45
Interest expense (657) (205)
Gain on insurance settlement - 148
Miscellaneous 16 8
------------- ----------
Income (loss) before income taxes (36) 224
------------- ----------
Income tax provision (benefit)-current - 4
Income tax provision (benefit)-deferred - 80
------------- ----------
Total income taxes - 84
------------- ----------
Net income (loss) $ (36) $ 140
============= ==========
Earnings (loss) per share - basic $ (0.00) $ 0.01
============= ==========
Earnings (loss) per share - diluted $ (0.00) $ 0.01
============= ==========
Weighted average shares outstanding - basic 15,078 14,756
============= ==========
Weighted average shares outstanding -
diluted 15,078 15,130
============= ==========
ULTRALIFE BATTERIES, INC.
CONSOLIDATED BALANCE SHEETS
(In Thousands, Except Per Share Amounts)
(unaudited)
March 31, December 31,
ASSETS 2007 2006
--------- ------------
Current assets:
Cash and investments $ 952 $ 720
Trade accounts receivable, net 22,478 24,197
Inventories 34,011 27,360
Prepaid expenses and other current assets 3,530 3,603
--------- ------------
Total current assets 60,971 55,880
Property and equipment 19,069 19,396
Other assets
Goodwill, intangible and other assets 22,056 22,482
--------- ------------
Total Assets $102,096 $ 97,758
========= ============
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities:
Short-term debt and current portion of long-
term debt $ 16,241 $ 12,246
Accounts payable 17,573 15,925
Other current liabilities 7,456 9,639
--------- ------------
Total current liabilities 41,270 37,810
--------- ------------
Long-term liabilities:
Long-term debt and capital lease obligations 20,035 20,043
Other long-term liabilities 359 316
--------- ------------
Total long-term liabilities 20,394 20,359
--------- ------------
Shareholders' equity:
Common stock, par value $0.10 per share 1,583 1,578
Capital in excess of par value 135,495 134,736
Accumulated other comprehensive income (206) (321)
Accumulated deficit (94,062) (94,026)
--------- ------------
42,810 41,967
Less -- Treasury stock, at cost 2,378 2,378
--------- ------------
Total shareholders' equity 40,432 39,589
--------- ------------
Total Liabilities and Shareholders' Equity $102,096 $ 97,758
========= ============
CONTACT: Ultralife Batteries, Inc.
Robert W. Fishback, 315-332-7100
bfishback@ulbi.com
or
Investor Relations:
Lippert/Heilshorn & Associates, Inc.
Jody Burfening, 212-838-3777
jburfening@lhai.com