Ultralife Corp. stock plummeted nearly 14 percent after the Newark firm reported a double-digit decline in second-quarter sales and a net loss.
Shares of Ultralife (Nasdaq: ULBI) were trading midday at $3.36, down 35 cents from Wednesday’s close of $3.89.
Thursday morning, the battery and communication accessories maker posted a net loss of $3.2 million, or 18 cents a share, versus net income of $2.8 million, or 16 cents a share, last year. Sales fell 57 percent to $18.7 million from $43.1 million a year ago.
Management said the results were due, in part, to delays in closing orders and budget tightening by its government and defense customers.
“Our highest priority is to remain financially healthy while demand remains soft,” said Michael Popielec, Ultralife's president and CEO, in a statement. “To that end, we have continued to make the tough decisions, aggressively reducing overhead costs and building more efficiencies into our operations, without compromising our new product development plans."
For 2012, management continues to expect high-single to low-double-digit annual revenue growth for its Communication Systems segment and China operations. Given the continued softness in the Battery & Energy Products segment—the company's largest segment—management expects year-over-year total sales to decline by 20 percent to 30 percent.
Ultralife has taken actions to reduce spending and believes it can return to operating profitability in the second half of the year, although the magnitude of the first-half operating loss is expected to result in a full-year operating loss.
Ultralife employs some 470 local workers.
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