Ultralife Q4 2008 Earnings Call Transcript

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2009-02-12 11:38:07.0

Tags: Seeking Alpha, Ultralife Batteries Inc.

Question-and-Answer Session

Operator

Thank you. Today's question and answer session will be conducted electronically. (Operator Instructions). Our first question comes from James McIlree with Collins Stewart.

James McIlree - Collins Stewart

Hey, John, for the quarter, the Rechargeable revenues doubled for a specific contract, did I hear that correctly?

John Kavazanjian

No, no. They doubled across a whole bunch of areas. International sales were very strong and domestic projects that we do both in defense and commercial were strong as well. I think the point we made was that one specific contract, which was, I don't know, a couple of million dollars, Bill?

William Schmitz

$5 million.

John Kavazanjian

$5 million of it. So yes, I guess it was a percentage, about a third of it were for chargers that we took less in our customary margin because we had an opportunity to change over somebody's charging infrastructure.

James McIlree - Collins Stewart

Right, okay. And so is that $15 million a good run rate going forward or is it more likely to be kind of the 10 million-ish per quarter going forward?

John Kavazanjian

It's a good base going forward.

James McIlree - Collins Stewart

Okay. And then secondly, on the, I'm going to call it McDowell for lack... just because of out of habit, but on the McDonald stuff, it seems like $10 million a quarter without the big contracts should be a good number, is that correct?

John Kavazanjian

I would say it's in the right range, 8 to 7 to 10. Could be a little more sometimes, could be a little less. The problem we face now is it's such a big part of our business for some of these programs is really kind of the lumpiness of it and stuff that can move from quarter-to-quarter either in or out. I mean you saw how huge our shipments were in the second and third quarter. I think we are pretty clear that wasn't going to continue that way. But yes, I mean the non-big systems part of the business runs anywhere from $7 million to $10 million a quarter, fairly consistent.

James McIlree - Collins Stewart

Okay. And the satellite on the move projects that you are chasing, are these formalized programs of record or are they urgent operational needs that you are responding to?

John Kavazanjian

Programs of record. What you are going to see is again, I can only tell you what we were told from the subcontractors we work with, or the primes we work with, I should say. And that's that these are getting put into IDIQ [indefinite delivery/indefinite quantity] multi-year contracts. And those contracts will then service vehicle programs of record.

 

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