11.

BUSINESS SEGMENT INFORMATION

We report our results in

two

operating segments: Battery & Energy Products and Communications Systems. The Battery & Energy Products segment includes: lithium

-volt, cylindrical and other non-rechargeable batteries, in addition to rechargeable batteries, uninterruptable power supplies, charging systems and accessories. The Communications Systems segment includes: RF amplifiers, power supplies, cable and connector assemblies, amplified speakers, equipment mounts, case equipment, man-portable systems, integrated communication systems for fixed or vehicle applications and communications and electronics systems design. We believe that reporting performance at the gross profit level is the best indicator of segment performance. As such, we report segment performance at the gross profit level and operating expenses as corporate charges.

The components of segment performance were as follows:

Three-Month Period Ended

September 29

2019:

	Battery & Energy Products		Communi cations Systems		Corporate			Total
Revenues	$	22,578	$	4,915	$	-		$	27,493
Segment contribution		6,117		1,744		(6,555	)		1,306
Other expense						(160	)		(160	)
Tax provision						(225	)		(225	)
Non-controlling interest						(23	)		(23	)
Net income attributable to Ultralife								$	898

Three-Month Period Ended

September 30

2018:

	Battery & Energy Products		Communi cati ons Systems		Corporate			Total
Revenues	$	17,289	$	3,041	$	-		$	20,330
Segment contribution		4,702		1,339		(4,541	)		1,500
Other income						21			21
Tax provision						(86	)		(86	)
Non-controlling interest						(27	)		(27	)
Net income attributable to Ultralife								$	1,408

Nine

-Month Period Ended

September 29

2019:

	Battery & Energy Products		Communi cat ions Systems		Corporate			Total
Revenues	$	58,876	$	16,896	$	-		$	75,772
Segment contribution		16,182		5,628		(16,914	)		4,896
Other expense						(301	)		(301	)
Tax provision						(942	)		(942	)
Non-controlling interest						(74	)		(74	)
Net income attributable to Ultralife								$	3,579

Nine

-Month Period Ended

September 30

2018:

	Battery & Energy Products		Communi cations Systems		Corporate			Total
Revenues	$	52,344	$	13,919	$	-		$	66,263
Segment contribution		14,664		5,209		(14,385	)		5,488
Other expense						(27	)		(27	)
Tax provision						(219	)		(219	)
Non-controlling interest						(57	)		(57	)
Net income attributable to Ultralife								$	5,185

The following tables disaggregate our business segment revenues by major source and geography.

Commercial and Government/Defense Revenue Information:

Three-Month Period Ended September 29, 2019:	Total Revenue		Commercial			Government/ Defense
Battery & Energy Products	$	22,578	$	17,677		$	4,901
Communications Systems		4,915		-			4,915
Total	$	27,493	$	17,677		$	9,816
				64	%		36	%

Three-Month Period Ended September 30, 2018:	Total Revenue		Commercial			Government/ Defense
Battery & Energy Products	$	17,289	$	10,127		$	7,162
Communications Systems		3,041		-			3,041
Total	$	20,330	$	10,127		$	10,203
				50	%		50	%


Nine-Month Period Ended September 29, 2019:	Total Revenue		Commercial			Government/ Defense
Battery & Energy Products	$	58,876	$	42,736		$	16,140
Communications Systems		16,896		-			16,896
Total	$	75,772	$	42,736		$	33,036
				56	%		44	%

Nine-Month Period Ended September 30, 2018:	Total Revenue		Commercial			Government/ Defense
Battery & Energy Products	$	52,344	$	30,007		$	22,337
Communications Systems		13,919		-			13,919
Total	$	66,263	$	30,007		$	36,256
				45	%		55	%

U.S. and Non-U.S. Revenue Information

Three-Month Period Ended September 29, 2019:	Total Revenue		United States			Non-United States
Battery & Energy Products	$	22,578	$	11,459		$	11,119
Communications Systems		4,915		4,397			518
Total	$	27,493	$	15,856		$	11,637
				58	%		42	%

Three-Month Period Ended September 30, 2018:	Total Revenue		United States			Non-United States
Battery & Energy Products	$	17,289	$	9,389		$	7,900
Communications Systems		3,041		2,140			901
Total	$	20,330	$	11,529		$	8,801
				57	%		43	%

Nine-Month Period Ended September 29, 2019:	Total Revenue		United States			Non-United States
Battery & Energy Products	$	58,876	$	29,869		$	29,007
Communications Systems		16,896		15,748			1,148
Total	$	75,772	$	45,617		$	30,155
				60	%		40	%

Nine-Month Period Ended September 30, 2018:	Total Revenue		United States			Non-United States
Battery & Energy Products	$	52,344	$	29,451		$	22,893
Communications Systems		13,919		12,747			1,172
Total	$	66,263	$	42,198		$	24,065
				64	%		36	%

Sales classified to U.S. include shipments to U.S.-based prime contractors which in some cases

may

serve non-U.S. projects.