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Mar 31, 2023
Ultralife Q1 2023 Earnings Report
Reported breakeven operating income and adjusted EBITDA of $1.2 million on revenue of $31.9 million.
Key Takeaways
Ultralife Corporation reported a revenue increase of 5.1% to $31.9 million, with breakeven operating income for Q1 2023. The cybersecurity attack negatively impacted the operating results, however, gross margin improved through price realization.
Revenue increased by 5.1% compared to the same period last year.
Gross profit increased to $7.4 million, or 23.3% of revenue.
Operating income was breakeven, compared to an operating loss last year.
Government/defense sales increased 24.7%, while commercial sales decreased 1.7%.
Ultralife
Ultralife
Ultralife Revenue by Segment
Revenue by Segment
Communications Systems Revenue
CapyFin.com Forward Guidance
The company aims to deliver high-quality, profitable growth through operational improvements and generate incremental cash flow to pay down acquisition debt.
Positive Outlook
- Fulfilling orders held back due to the cybersecurity attack.
- Meeting surging demand from medical and government/defense customers.
- Satisfying ongoing demand from other commercial end markets, particularly oil & gas.
- Execution of lean manufacturing initiatives to improve production efficiency.
- Continued price realization and qualification of alternate component suppliers to recapture gross margin.
Challenges Ahead
- Aftereffects of the cybersecurity event.
- Lingering supply chain disruptions including higher material and logistics costs.
- Continued investments in the transition of new products to high volume production.
- Impact of COVID-19 and related supply chain disruptions.
- Potential reductions in revenues from key customers.