Ultralife Corp. reported a drop in third-quarter sales but a slight increase in profit. The results were affected by the recent sale of its RedBlack Communications business.
The Newark, Wayne County, firm reported net income from continuing operations of $1.5 million, or 9 cents a share, compared with net income of $1.3 million, or 8 cents a share, a year ago. Net income from discontinued operations for the most recent quarter was $200,000, or a penny a share.
Sales were $26.2 million, down 26 percent from sales of $35.2 million a year ago.
Battery & Energy Products segment sales declined by $12.2 million to $16.6 million, primarily due to the continued slowdown in the government and defense order rate for rechargeable and non-rechargeable batteries, the company said. Communications Systems segment sales were $9.5 million, compared with $6.4 million a year ago. The roughly 50 percent increase reflects shipments of certain systems and the fulfillment of amplifier orders that were delayed from the second quarter.
In September, Ultralife completed the sale of its RedBlack Communications for $2.5 million, not including a post-closing working capital adjustment. RedBlack's results and related divestiture costs are reported as a discontinued operation.
"With a cost structure that is right-sized for current revenue realities, a business model that is moving in the right direction, and continued solid liquidity, we are better positioned to remain profitable during the gestation period of our new products and markets, and as we complete the transition to a more agile, new product innovation-driven company," said Michael Popielec, Ultralife's president and CEO, in a statement.
Management expects high-single to low-double digit year-over-year revenue growth for its Communication Systems segment and China operations. Given the continued uncertainty in government and defense orders for the Battery & Energy Products segment, the company's largest segment, the company expects total sales to decline by 20 percent to 30 percent.
Ultralife ranked 16th on the most recent Rochester Business Journal list of manufacturers with 473 workers.
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