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Jun 30, 2023

Ultralife Q2 2023 Earnings Report

Reported a strong second quarter with significant revenue growth and improved profitability.

Key Takeaways

Ultralife Corporation reported a 32.9% year-over-year increase in sales to $42.7 million for the second quarter of 2023. Operating income significantly improved to $3.7 million, and adjusted EPS reached $0.29. The company's backlog increased to $110.9 million, driven by strong demand from government/defense and medical customers.

Sales increased by 32.9% year-over-year to $42.7 million.

Operating income increased to $3.7 million from $0.8 million in the previous year.

Adjusted EPS was $0.29, compared to $0.03 for the 2022 second quarter.

Backlog increased to $110.9 million, representing a 40.1% increase year-over-year.

Total Revenue
$42.7M
Previous year: $32.1M
+32.9%
EPS
$0.29
Previous year: $0.03
+866.7%
Gross Margin
24.8%
Previous year: 23.8%
+4.2%
Gross Profit
$10.6M
Previous year: $7.6M
+39.5%
Cash and Equivalents
$8.2M
Previous year: $5.04M
+62.8%
Free Cash Flow
$1.24M
Previous year: -$392K
-415.1%
Total Assets
$175M
Previous year: $162M
+8.1%

Ultralife

Ultralife

Ultralife Revenue by Segment

Forward Guidance

The near-term highest priority remains to recapture gross margin through continued execution of price realization activities, qualification of alternate component suppliers, and lean manufacturing initiatives, positioning the company to deliver high-quality, sustainable profitable growth for 2023.

Positive Outlook

  • Durable demand across diverse end markets.
  • Execution of price realization activities.
  • Qualification of alternate component suppliers.
  • Lean manufacturing initiatives.
  • Strengthening relationships with key customers.

Challenges Ahead

  • Lingering inefficiencies resulting from the first quarter cyber-attack.
  • Disposition of certain non-conforming materials.
  • Continued investments in the transition of new products to high volume production.
  • Potential reductions in revenues from key customers.
  • Uncertain global economic conditions.