Ultralife Corp. reported a tiny second-quarter profit Thursday, due largely to process improvements and controlling costs, but missed Street expectations.
The Newark, Wayne County, firm reported net income of $20,000, or breakeven a share, compared with a net loss of $7 million, or 41 cents a share, during last year’s second quarter.
Analysts polled by Thomson Reuters expected earnings per share of 3 cents.
Revenues were $37 million, down from $39.6 million last year.
John Kavazanjian, Ultralife president and CEO, said controlling costs and improving manufacturing processes helped offset lighter battery sales to the U.S. Department of Defense.
“Having lowered the cost basis of our business and successfully increased the weight of higher-margin products, we are well-positioned to deliver strong incremental returns on the higher revenue anticipated for the second half of the year,” Kavazanjian said in a statement.
Ultralife is expecting 2010 sales of $177 million to $182 million, but does not include any revenue associated with orders for batteries from the Department of Defense. Analysts expect annual sales of $186.2 million.
Shares of Ultralife (Nasdaq: ULBI) were trading midday at $4.41, down roughly 5 percent from Wednesday’s close of $4.63.
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