Core Viewpoint - Ultralife Corporation reported a mixed financial performance for the third quarter of 2025, with revenue growth impacted by supply chain issues and a decision to close its Calgary facility, which is expected to yield future cost savings [1][2][4]. Financial Performance - Revenue for the third quarter was $43.4 million, a 21.5% increase from $35.7 million in the same quarter of 2024. Organic growth was 2.5%, while the Electrochem acquisition contributed significantly to the revenue increase [4][7]. - Gross profit was $9.6 million, representing 22.2% of revenue, down from 24.3% in the previous year, primarily due to manufacturing inefficiencies and a less favorable sales mix [5][7]. - Operating expenses rose to $10.6 million from $8.2 million year-over-year, influenced by the inclusion of Electrochem and one-time costs related to the Calgary facility closure [6][7]. Operational Changes - The decision to close the Calgary battery pack assembly facility will incur a one-time charge of $0.5 million but is expected to save approximately $0.8 million annually post-closure [1][4]. - The company is focusing on improving supply chain resiliency and manufacturing operations to address inefficiencies in its Battery & Energy Products business [2][3]. Segment Performance - Battery & Energy Products sales increased by 22.8% to $39.9 million, driven by the Electrochem acquisition, while excluding Electrochem, sales grew by 1.9% [4][7]. - Communications Systems sales rose by 8.2% to $3.4 million compared to the previous year [4][7]. Profitability Metrics - The operating loss for the quarter was $1.0 million, compared to an operating income of $0.5 million in the same quarter of 2024, largely due to one-time costs and lower gross margins [8][9]. - Adjusted EBITDA for the quarter was $2.0 million, slightly up from $1.9 million year-over-year, indicating some operational stability despite the challenges faced [10][20]. Backlog and Future Outlook - The backlog at the end of the third quarter was $90.1 million, an increase from $84.5 million at the end of the second quarter, suggesting a positive outlook for future revenue [7].

Core Points - Ultralife Corporation will report its third quarter results for the period ended September 30, 2025, before the market opens on November 18, 2025 [1] - An investor conference call and webcast will be hosted by Ultralife's management at 8:30 AM ET on the same day [1] - Participants are required to pre-register for the conference call to ensure a reliable connection [2] - A live webcast will be available on the company's website, with a replay accessible shortly after the call [3] Company Overview - Ultralife Corporation provides products and services in power solutions, communications, and electronics systems [4] - The company serves government, defense, and commercial customers globally [4] - Ultralife is headquartered in Newark, New York, and operates in North America, Europe, and Asia [5]

Core Viewpoint - Ultralife Corporation faced challenges in the second quarter of 2025, with flat organic sales in Battery & Energy Products and a significant decline in Communications Systems sales, but anticipates improved results in the second half of the year and into 2026 due to various factors including new product programs and increased demand from key sectors [1][2]. Financial Performance - Revenue for the second quarter was $48.6 million, a 13.0% increase from $43.0 million in the same quarter of 2024 [3][6]. - Battery & Energy Products sales rose by 25.0% to $45.9 million, largely due to the inclusion of Electrochem Solutions, Inc. [3][6]. - Excluding Electrochem, Battery & Energy Products sales were flat year-over-year, with government/defense sales up 61.1% but commercial sales down 20.4% [3][6]. - Communications Systems sales decreased by 57.2% to $2.7 million, primarily due to shipment delays and order timing issues [3][6]. Profitability Metrics - Gross profit was $11.6 million, representing 23.9% of revenue, down from 26.9% in the same quarter last year [4][6]. - Operating income was $2.3 million, a decline from $3.9 million in the prior year, with an operating margin of 4.6% compared to 9.1% [7][6]. - Net income attributable to Ultralife was $0.9 million, or $0.05 per diluted share, down from $3.0 million or $0.18 per diluted share in the second quarter of 2024 [9][6]. Operating Expenses - Operating expenses increased to $9.3 million from $7.6 million in the same quarter last year, reflecting higher costs associated with new product development and the inclusion of Electrochem [5][6]. - Operating expenses accounted for 19.2% of revenue, compared to 17.8% in the previous year [5][6]. Future Outlook - The company expects a rebound in its Communications Systems business and early purchase orders from new product programs in the battery segment, alongside growth in defense spending and opportunities in the oil & gas sector [2][1]. - Priorities include converting long-term product development into revenue and enhancing operational efficiency for sustainable growth [2][1].