ULTRALIFE CORPORATION (NASDAQ:ULBI) Files An 8-K Results of Operations and Financial Condition

Item 2.02 Results of Operations and Financial
Condition

NEWARK, N.Y. May 4, 2017 — Ultralife Corporation (NASDAQ:
ULBI)reported operating income of $1.8 million on revenue of
$22.0 million for the first quarter ended April 2, 2017. For the
first quarter of 2016, the Company reported operating income of
$0.5 million on revenue of $20.8 million.

Our diversified portfolio of commercial and government/defense
products contributed across the board to a 5.8% increase in sales
and a gross margin of 31.3% for the first quarter. On the
strength of these positive results and continued cost discipline,
we delivered a 610 basis-point improvement in operating margin to
8.4% and increased EPS more than five-fold to $0.11, for our
tenth consecutive quarter of profitability, said Michael D.
Popielec. Our first quarter performance, strong cash generation
and opportunities created by continued investments in market and
sales reach expansion and new product development are encouraging
indicators for another year of profitable growth in 2017.

Revenue was $22.0 million, an increase of $1.2 million, or 5.8%,
compared to $20.8 million for the first quarter of 2016
reflecting higher medical and government/defense sales. Battery
Energy Products sales increased $1.0 million to $17.5 million, or
6.3%, compared to $16.4 million last year due primarily to higher
government/defense, medical, and 9-Volt sales. Communications
Systems grew 3.7% to $4.6 million compared to $4.4 million for
the same period last year reflecting shipments of power supplies
to a large global defense prime contractor which more than offset
the year-earlier shipments under the Vehicle Installed Power
Enhanced Riflemen Appliqu (VIPER) Program.

Gross profit was $6.9 million, or 31.3% of revenue, compared to
$6.4 million, or 30.7% of revenue, for the same quarter a year
ago. Battery Energy Products gross margin was 28.2%, compared to
31.7% last year, a decrease of 350 basis points, and
Communications Systems gross margin was 43.0%, compared to 27.0%
last year, an increase of 1,600 basis points. For both
businesses, the fluctuations in gross margin resulted from
variations in product mix.

Operating expenses were $5.0 million compared to $5.9 million
last year reflecting discretionary spending reduction actions,
acquisition cost synergies and $0.2 million of non-recurring
expenses related to last years acquisition of Accutronics Ltd.
Operating expenses were 22.9% of revenue compared to 28.4% of
revenue for the year-earlier period.

Operating income was $1.8 million compared to $0.5 million last
year for an operating margin of 8.4% compared to 2.3% last year.

Net income was $1.7 million, or $0.11 per share, compared to net
income of $0.3 million, or $0.02 per share, for the first quarter
of 2016.

The information set forth in this Form 8-K and the attached
exhibit is being furnished to and not filed with the Securities
and Exchange Commission and shall not be deemed as incorporated
by reference in any filing under the Securities Exchange Act of
1934, as amended, or the Securities Act of 1933, as amended,
except to the extent specifically provided in any such filing.

Item 9.01Financial Statements, Pro Forma Financials and
Exhibits

(a) Exhibits.

About ULTRALIFE CORPORATION (NASDAQ:ULBI)

Ultralife Corporation offers products and services ranging from power solutions to communications, and electronics systems. The Company designs and manufactures power and communications systems, including rechargeable and non-rechargeable batteries, charging systems, communications and electronics systems. It operates through two segments: Battery & Energy Products and Communications Systems. The Battery & Energy Products segment includes lithium 9-volt, cylindrical and various other non-rechargeable batteries, in addition to rechargeable batteries, uninterruptable power supplies, charging systems and accessories, such as cables. The Communications Systems segment includes radio frequency (RF) amplifiers, power supplies, amplified speakers, equipment mounts, case equipment, man-portable systems, communication systems for fixed or vehicle applications, and communications and electronics systems design. Its brands are Ultralife Batteries, Lithium Power, McDowell Research, AMTI and ABLE.

ULTRALIFE CORPORATION (NASDAQ:ULBI) Recent Trading Information

ULTRALIFE CORPORATION (NASDAQ:ULBI) closed its last trading session 00.00 at 5.55 with 33,738 shares trading hands.