Ultralife Q2 2021 Earnings Report
Key Takeaways
Ultralife Corporation reported a decrease in revenue and operating income for the second quarter of 2021 compared to the same period in 2020. Revenue decreased by 6.3% to $26.8 million, and operating income decreased to $1.1 million. Supply chain and logistics challenges impacted shipments and increased freight costs.
Revenue decreased by 6.3% compared to the second quarter of 2020.
Operating income decreased from $2.3 million to $1.1 million year-over-year.
Commercial sales decreased 1.0% and government/defense sales decreased 13.2% from the 2020 period.
Supply chain and logistics issues delayed shipments and increased freight costs.
Ultralife
Ultralife
Ultralife Revenue by Segment
Forward Guidance
The company aims to improve financial performance each quarter, focusing on near-term and long-term growth initiatives while adhering to a profitable business model. Supply chains and logistics continue to be the source of operational challenges, delaying some shipments and increasing freight costs, and clouding our visibility for the second half of the year.
Positive Outlook
- End market activity remains high.
- Company is focused on executing near-term growth initiatives.
- Company is focused on developing long-term growth opportunities.
- Company is adhering to a proven and profitable business model.
- Sequential EPS grew 20% on the strength of gains in commercial sales.
Challenges Ahead
- Supply chains and logistics continue to be a source of operational challenges.
- Some shipments have been delayed.
- Freight costs have increased.
- Visibility for the second half of the year is clouded.
- Delayed shipments adversely impacted revenue for the 2021 second quarter by approximately $1.5 million.