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Dec 31, 2021
Ultralife Q4 2021 Earnings Report
Reported an operating loss due to supply chain challenges and acquisition costs.
Key Takeaways
Ultralife Corporation reported a decrease in revenue and operating income for Q4 2021 compared to the same period in 2020. The results were impacted by supply chain challenges, COVID-19 related logistics matters, and acquisition costs related to the Excell Battery Group. Despite these challenges, order flow remained strong and backlog increased.
Revenue decreased by 18.0% to $23.8 million compared to Q4 2020.
Operating loss was $1.2 million, compared to an operating income of $1.2 million in Q4 2020.
The company estimates that delayed shipments adversely impacted revenue by approximately $5.4 million and EPS by approximately $0.09.
Backlog at the end of the quarter increased to over $53 million, a 35% increase over year-end 2020 for the core business.
Ultralife
Ultralife
Ultralife Revenue by Segment
Revenue by Segment
Communications Systems Revenue
CapyFin.com Forward Guidance
The company's backlog, customer relationships, and new product initiatives support the view that long-term profitable growth drivers and strategy are sound and achievable.
Positive Outlook
- Strong order flow in medical and military end markets.
- Backlog increased significantly, bolstered by Excell acquisition.
- Continued advancement of transformational new product development projects.
- Solid liquidity position after Excell acquisition and debt payoff.
- Rebound in oil & gas revenues and performance of China operations.
Challenges Ahead
- Supply chain challenges associated with the global pandemic persisted.
- Revenue and earnings were weighed down by supply chain issues.
- Increased lead times on components from suppliers.
- COVID-19 related logistics matters resulted in shipment delays.
- Delayed shipments adversely impacted revenue and operating income.