Ultralife to take $14M write-off

Ultralife Corp. in Newark, Wayne County, said it will take a fourth-quarter charge of about $14 million, or 81 cents a share, as it writes off the estimated value of the standby power business that's included in the company's energy services segment. The standby power business stems from two acquisitions Ultralife made in 2007 and 2008. Since those deals, "cautious spending and continued delays in implementing large capital projects by customers ... have negatively impacted results" in Ultralife's energy services segment, CEO John D. Kavazanjian said. He said the write-off "in no way affects the company's current operations or alters its commitment to building its energy services business."

"While customer spending in the standby power market has been depressed, we still believe increased spending will resume as the economy continues to rebound," Kavazanjian said. The company updated its financial guidance to project revenue of $177 million and operating income of $7 million for all of 2010. Ultralife shares fell 98 cents Wednesday to close at $6.09. The stock is up 41 percent this year.