Ultralife Corporation (ULBI) has reported a 2.67 percent fall in profit for the quarter ended Sep. 25, 2016. The company has earned $1.02 million, or $0.07 a share in the quarter, compared with $1.05 million, or $0.07 a share for the same period last year.
Revenue during the quarter grew 3.08 percent to $19.63 million from $19.04 million in the previous year period. Gross margin for the quarter contracted 43 basis points over the previous year period to 30.55 percent. Total expenses were 94.20 percent of quarterly revenues, up from 93.84 percent for the same period last year. That has resulted in a contraction of 36 basis points in operating margin to 5.80 percent.
Operating income for the quarter was $1.14 million, compared with $1.17 million in the previous year period.
“Successful execution of the strategy to diversify beyond our core U.S. government/defense business while abiding by our business model parameters produced solid third quarter results,” said Michael D. Popielec, president and chief executive officer. “Although weak economic conditions continued to constrain revenue growth, we delivered operating income for the third quarter that was more than double the second quarter, and profitability for the eighth consecutive quarter. We also remain poised to achieve profitable growth for 2016. Finally, we continue to build resources to support investments in organic and inorganic growth opportunities through greater operating leverage and inventory reductions.”
Working capital declines
Ultralife Corporation has witnessed a decline in the working capital over the last year. It stood at $35.71 million as at Sep. 25, 2016, down 10.83 percent or $4.34 million from $40.05 million on Sep. 27, 2015. Current ratio was at 4.11 as on Sep. 25, 2016, down from 4.48 on Sep. 27, 2015.
Cash conversion cycle (CCC) has decreased to 97 days for the quarter from 173 days for the last year period. Days sales outstanding went up to 56 days for the quarter compared with 55 days for the same period last year.
Days inventory outstanding has decreased to 83 days for the quarter compared with 164 days for the previous year period. At the same time, days payable outstanding went down to 42 days for the quarter from 45 for the same period last year.
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