Ultrasonic distance measurement using the pulse-echo method is based on the determination of the time of flight of ultrasonic waves. The pulse-compression technique, in which the cross-correlation function of a detected ultrasonic wave and a transmitted ultrasonic wave is obtained, is the conventional method used for improving the resolution of distance measurement. However, the calculation of a cross-correlation operation requires high-cost digital signal processing. This paper presents a new method of sensor signal processing within the pulse-compression technique using a delta-sigma modulated single-bit digital signal. The proposed sensor signal processing method consists of a cross-correlation operation employing single-bit signal processing and a smoothing operation involving a moving average filter. The proposed method reduces the calculation cost of the digital signal processing of the pulse-compression technique.