Ultralife Corp. (NASDAQ:ULBI) Q2 2020 Earnings Conference Call - Final Transcript

Jul 30, 2020 • 08:30 am ET


Ultralife Corp. (NASDAQ:ULBI) Q2 2020 Earnings Conference Call - Final Transcript


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Good day and welcome to the Ultralife Corporation Second Quarter 2020 Earnings Release Conference Call. At this time, for opening remarks and introductions, I'd like to turn the call over to Ms. Jody Burfening. Please go ahead.

Jody Burfening

Thank you, Anita, and good morning everyone and thank you for joining us this morning for Ultralife Corporation's Earnings Conference Call for the second quarter of fiscal 2020. With us on today's call are Mike Popielec, Ultralife's President and CEO, and Phil Fain, Ultralife's Chief Financial Officer.

The earnings press release was issued earlier this morning. If anyone has not yet received a copy, I invite you to visit the company's website UltralifeCorp.com, where you'll find the release under Investor News in the Investor Relations section. Before turning the call over to management, I would like to remind everyone that some statements made during this conference call contain forward-looking statements based on current expectations. Actual results could differ materially from those projected as a result of various risks and uncertainties. These include potential reductions in revenues from key customers, uncertain global economic conditions and acceptance of new products on a global basis. The company cautions investors not to place undue reliance on forward-looking statements, which reflect the company's analysis only as of today's date. The company undertakes no obligation to publicly update forward-looking statements to reflect subsequent events or circumstances. Further information on these and other factors that could affect Ultralife's financial results is included in Ultralife's filings with the Securities and Exchange Commission, including the latest annual report on Form 10-K and latest quarterly report on Form 10-Q. In addition, on today's call, management will refer to certain non-GAAP financial measures that management considers to be useful metrics and differ from GAAP. These non-GAAP measures should be considered as supplemental to corresponding GAAP figures.

With that, I would now like to turn the call over to Mike. Good morning, Mike.

Michael D. Popielec

Good morning, Jody, and thank you everyone for joining the call. Today I'll start by making some brief overall comments about our Q2 2020 operating performance, after which I'll turn the call over to Phil who will take you through the detailed financial results. When Phil is finished, I'll provide an update on the progress against our 2020 revenue initiatives, and then open it up for questions.

For the second quarter of 2020, in the face of ongoing market, supply chain and operational headwinds due to the Covid-19 pandemic, Battery & Energy Products core revenues were up organically 23% year-over-year, driven by strong increases in both our medical and government defense revenues. When combined with the three acquisition revenues, B&E nearly fully offset the expected decline in Communication Systems year-over-year quarterly revenues, as existing Communication Systems contracts under the US army's Network Modernization initiatives reach completion, while the company Q2 revenues were within 3% of the prior year and Q2 adjusted earnings per share were $0.13 per share. The team built on the momentum from Q1 and delivered solid sequential improvements in revenue,