Ultralife Q1 2020 Earnings Report
Key Takeaways
Ultralife Corporation reported a substantial increase in revenue and operating income for the first quarter of 2020. Revenue increased by 37% and operating profit increased by 171% compared to the same period last year. The company faced challenges due to COVID-19, including a shutdown in China, but managed to maintain operations and invest in growth initiatives.
Revenue increased by 36.7% to $25.8 million, compared to $18.9 million in the first quarter of 2019.
Operating income rose to $1.5 million, a 171% increase from $0.5 million in the prior year.
Net income increased to $1.1 million, or $0.07 per diluted share, compared to $0.4 million, or $0.03 per diluted share, in the first quarter of 2019.
Battery & Energy Products revenues were $20.8 million, compared to $16.0 million last year, primarily reflecting the SWE acquisition.
Ultralife
Ultralife
Ultralife Revenue by Segment
Forward Guidance
Ultralife is investing approximately $1 million in the second quarter for additional test equipment to meet the increased demand for power supplies. With a backlog increasing approximately 20% over year-end 2019, ample liquidity, end-market diversity and tight control over discretionary spending, they are well positioned to both sustain operations and continue investing in growth initiatives.
Positive Outlook
- Investing approximately $1 million in additional test equipment in Q2 to meet increased demand.
- Backlog increasing approximately 20% over year-end 2019.
- Ample liquidity.
- End-market diversity.
- Tight control over discretionary spending.
Revenue & Expenses
Visualization of income flow from segment revenue to net income