Ultralife Corporation (NASDAQ:ULBI) rose Tuesday after the company announced it was awarded an IDIQ contract under the U.S. Army's $1.25-billion conformal wearable battery program.
The Newark, New Jersey-based company has received a firm-fixed price indefinite-delivery/indefinite-quantity contract from the U.S. Army for purchases of Conformal Wearable Batteries not to exceed $168 million during the three-year base award period with the potential for up to an additional $350 million should the six one-year option periods be exercised.
Tuesday’s news release state the timing of deliveries and quantities are at the discretion of the U.S. Army, and include successful completion of First Article Testing demonstrating full compliance with the contractual product specifications and program requirements.
The lightweight, Lithium-Ion rechargeable batteries will provide soldiers with a power source capable of sustaining dismounted operations in remote areas for up to 24 hours and are envisioned to increase soldier mobility by reducing the weight and quantity of batteries needed to be carried.
Said CEO Michael Popielec, "Ultralife is a long-standing supplier to the U.S. military and our products are recognized for their long-life, unsurpassed safety record and reliability under the toughest conditions. Our selection to participate in what could be a military battery program extending up to nine years, demonstrates the effectiveness of our new product development strategy of designing and building technically advanced batteries in collaboration with our strategic partners.
"We look forward to expanding our heritage of supporting soldier modernization initiatives by providing the highest quality, mission-critical power solutions."
ULBI shares hiked $2.20, or 25.9%, to $10.71.
