Ultralife Corporation Reports Fourth Quarter Results

Core Insights - Ultralife Corporation has completed the acquisition of Electrochem and has begun the integration process to realize the benefits of this investment [3][4] - The company reported a revenue of $43.9 million for Q4 2024, slightly down from $44.5 million in Q4 2023, with Electrochem contributing $6.1 million to this figure [5][6] - The company is optimistic about its future growth, citing a healthy backlog of $102.2 million and plans for new product launches in high-growth markets [4][5] Financial Performance - Q4 2024 revenue was $43.9 million, including $6.1 million from Electrochem, compared to $44.5 million in Q4 2023 [5][6] - Battery & Energy Products sales increased by 11.7% to $39.9 million, while Communications Systems sales decreased by 55.1% to $4.0 million [5][6] - Gross profit for Q4 2024 was $10.6 million, or 24.2% of revenue, down from $11.4 million, or 25.6% of revenue, in Q4 2023 [6][7] Operating Metrics - Operating income for Q4 2024 was $1.5 million, down from $3.6 million in Q4 2023, impacted by one-time acquisition costs and a decline in Communications Systems sales [6][9] - Operating expenses increased to $9.1 million in Q4 2024 from $7.8 million in Q4 2023, reflecting costs associated with the acquisition of Electrochem [8][9] - The company reported a GAAP EPS of $0.01 for Q4 2024, compared to $0.17 for Q4 2023 [10][21] Yearly Overview - For the fiscal year 2024, total revenue was $164.5 million, a 3.7% increase year-over-year, remaining flat when excluding Electrochem [6][20] - Operating income for the year was $10.0 million, compared to $9.5 million in 2023, despite one-time costs related to the acquisition [6][20] - The company achieved an adjusted EBITDA of $16.5 million for the year, up from $15.7 million in 2023 [6][11] Strategic Outlook - The company is focused on completing the integration of Electrochem to achieve manufacturing cost efficiencies and vertical integration savings [4][5] - Ultralife aims to leverage its strengthened sales and marketing leadership to expedite organic growth and enhance its global brand [4][5] - The company is confident in its ability to deliver profitable growth and incremental cash flow, which will support debt reduction and strategic capital expenditures [4][5]