Ultralife Corp (ULBI) Reports Q3 2023 Earnings: Revenue and Gross Profit Rise
Ultralife Corp (NASDAQ:ULBI) reported Q3 2023 revenues of $39.5 million, a 19% increase year-over-year.
The company's gross profit rose to $9.8 million, marking a significant improvement from the same period last year.
Operating profit for the quarter was $2.1 million, compared to an operating loss of $0.6 million in Q3 2022.
Net income for the quarter was $1.3 million, or $0.08 per diluted share, compared to a net loss of $0.2 million in Q3 2022.
Ultralife Corp (NASDAQ:ULBI) released its Q3 2023 earnings report on October 26, 2023. The company reported a 19% increase in sales for both the third quarter and the first nine months of 2023, driven by strong demand from government/defense and medical customers. Sales for the third quarter and the first nine months reached $39.5 million and $114.1 million, respectively.
Financial Performance
Ultralife Corp (NASDAQ:ULBI) reported a gross margin improvement of 460 basis points to 24.8% for the third quarter, attributed to price realization, lean manufacturing initiatives, and level-loaded production. The company's operating profit of $2.1 million far exceeded the operating loss of $0.6 million from the year-earlier quarter. Net income was $1.3 million or $0.08 per diluted share on a GAAP basis, compared to a net loss of $0.2 million or $0.01 per diluted share for the third quarter of 2022.
Revenue Breakdown
Revenue for the quarter was $39.5 million, an increase of 18.8% compared to the same period last year. Battery & Energy Products sales increased 11.7% to $31.9 million, reflecting increases in government/defense sales and medical battery sales. Communications Systems sales increased by 62.7% to $7.6 million, primarily due to shipments of vehicle-amplifier adaptors and integrated systems of amplifiers and radio vehicle mounts.
Balance Sheet Overview
As of September 30, 2023, Ultralife Corp (NASDAQ:ULBI) reported total assets of $176.1 million, up from $168.4 million at the end of 2022. The company's total liabilities stood at $54.3 million, while total shareholders' equity was $121.8 million.
Outlook
Ultralife Corp (NASDAQ:ULBI) is well-positioned to continue its profitable growth and generate incremental cash flow to reduce its acquisition debt and further invest in its businesses. The company's total backlog exiting the 2023 third quarter was $101.1 million, with over $35 million due to ship over the remaining three months of 2023.
Explore the complete 8-K earnings release (here) from Ultralife Corp for further details.
This article first appeared on GuruFocus.
