NEWARK — It was a mixed bag for Ultralife Corporation’s third-quarter earnings.
Michael Popielec, president and chief executive officer for Newark-based Ultralife, said third quarter revenue was up 35 percent, with help from its Battery & Energy Products’ recent acquisition of Southwest Electronic Energy Corporation. He also pointed to a 62-percent increase in Communications Systems sales.
“These gains offset a decline in Battery & Energy’s core government/defense sales, reflecting timing of orders,” said Popielec. “Despite strong revenue growth, profitability was negatively impacted by late-cycle product changes and rework in fulfilling a major award for Communications Systems and the transition of several Battery & Energy new-product development projects to high-volume production.”
Additionally, he said, “We continued to invest in engineering resources to support new product-development projects that are designed to capture new, diversified revenue streams.”
The company said revenue was $27.5 million, an increase of $7.2 million, or 35.2 percent, compared to $20.3 million for the third quarter of 2018.
Gross profit was $7.9 million, or 28.6 percent of revenue, compared to $6 million, or 29.7 percent of revenue, for the same quarter a year ago.
Net income was $900,000, or 6 cents per share, compared to net income of $1.4 million, or 9 cents per share, for the third quarter of 2018.
Ultralife Corporation offers products and services ranging from power solutions to communications and electronics systems. Its customers include government, defense and commercial customers across the globe.
Besides its Newark headquarters, Ultralife has operations in North America, Europe and Asia. For more information, visit ultralifecorporation.com.