Ultralife Corporation

Good day and thank you for standing by. Welcome to the Ultralife Corporation fourth quarter 2025 results call. At this time, all participants are in a listen-only mode. After the speaker's presentation, there will be a question and answer session. To ask a question during the session, you'll need to press star 1-1 on your telephone. You will then hear an automated message advising your hand is raised. To withdraw your question, please press star 1-1 again. Please be advised that today's conference is being recorded. I'd now like to hand the conference over to Jody Burpening. Please go ahead.

Thank you, Liz, and good morning, everyone. And thank you for joining us this morning for Ultralife Corporation's earnings conference call for the fourth quarter of fiscal 2025. With us on today's call are Mike Manna, Ultralife's president and CEO, and Phil Fain, Ultralife's chief financial officer. The earnings press release was issued earlier this morning, and if anyone has not yet received a copy, I invite you to visit the company's website, www.ultralifecore.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. The potential risks and uncertainties that could cause actual results to differ materially include uncertain global economic conditions, reductions in revenues from key customers, delays or reductions in US and foreign military spending, acceptance of new products on a global basis, and disruptions or delays in our supply of raw materials and components. due to business conditions, global conflicts, weather, or other factors not under our control. 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 factors and other factors that could affect Ultralife's financial results is included in the company's filings with the Securities and Exchange Commission. In addition, on today's call, management will refer to certain non-GAAP financial measures that management considers to be useful and differ from GAAP. These non-GAAP measures should be considered supplemental to corresponding GAAP figures. With that, I would now like to turn the call over to Mike. Good morning, Mike.

Good morning. Welcome to Ultralife's Q4 and full year 2025 results call. Earlier today, we announced Q4 revenue of $48.5 million, an increase of 10.6% year-over-year, with an operating profit loss of $10.6 million after a one-time non-cash impairment, which results in a loss of $0.45 EPS. We finished the year 2025 with revenue of $191.2 million, with over $30 million from new products less than five years old, which is a growth of 16.2% year-over-year, which after the non-cash write-down resulted in a full-year operating profit loss of $5.9 million, which equates to a full-year loss of $0.35 EPS. During 2025, we completed the electric M transition and various operational initiatives to reduce ongoing costs. I am excited to see our backlog grow to $110 million exiting the year, diversified across several markets and applications with over 6 million of it driven from new products released in 2025. In 2026, I expect the communication systems business to rebound as new product sales begin and long delayed programs start selling through. the battery and energy business improving gross margin and revenue from new product launches our improved brand promotion and collaboration of worldwide resources will drive organic growth and new customer opportunities i will turn over to phil to talk through the detailed numbers thank you mike and good morning everyone earlier this morning we released our fourth quarter results for the quarter ended december 31st 2025. we have also updated our investor presentation