Ultralife Q4 2021 Earnings Report
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
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.