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To: richardred who wrote (2249)	10/20/2009 12:24:35 PM
From: richardred	Respond to of 7242

Collins Stewart Downgrades Ultralife (ULBI) to Hold; Slashes 2009-10 Estimates More News related to ULBI * Collins Stewart Downgrades Ultralife (ULBI) to Hold; Slashes 2009-10 Estimates More News related to Downgrades October 20, 2009 11:31 AM EDT Collins Stewart downgrades Ultralife (Nasdaq: ULBI) to Hold. Collins analyst says, "During the summer we upgraded Ultralife to a Buy based on the assumption the company would be a significant beneficiary of the M-ATV deployment. Today, the company announced it will not receive orders for its SOTM (SATCOM-on-the-move) kits. We believe these kits will be supplied by Harris as part of that company's $334 million IDIQ the Marines intend to award. This results in significantly lower revenue and EPS estimates for Ultralife. The M-ATV loss could be offset, somewhat, by orders for other platforms like Strykers and Bradleys. In fact, Ultralife received a $20 million order for SOTM kits this morning unrelated to M-ATV. However, although we think SOTM will be a key part of vehicle accessories, we do not believe the loss of M-ATV can be easily overcome. There is no other rapid vehicle procurement of M-ATV's magnitude currently...We have slashed our forecasts for 2009 and 2010. The reductions are based solely on the loss of M-ATV. We now expect bottom-line losses in both years." streetinsider.com