PETACH-TIKVA, Israel,
July 24, 2017 /PRNewswire/ --
Eltek Ltd. (NASDAQ: ELTK), a global manufacturer and supplier of
technologically advanced solutions in the field of printed circuit
boards, announced today it received an order from a governmental
authority for a project that includes, among other things,
manufacturing and procurement in an amount of up to approximately
US$ 3 million.
The execution of the project will extend over a period of two
years, during which Eltek will be required to meet quarterly
milestones. The customer has an option to extend the project for an
additional twelve month period, during which Eltek will be required
to meet additional quarterly milestones.
Payments to Eltek shall be made on a quarterly basis, subject to
the fulfillment of each milestone. The project is expected to
generate total aggregate revenues of approximately US$ 2.1 million (approximately US$ 3 million if the option is exercised). In
addition, to enable the execution of the project, the costumer
shall lend the Company, for no consideration, equipment in a total
aggregate amount of approximately US$ 1.8
million (approximately US$ 2
million if the option is exercised).
The customer may terminate the project on its first anniversary,
but will be required to reimburse Eltek for its direct costs and
expenses with regard to the project until such termination.
The Board of Directors has authorized the company to receive
bridge financing as may be required to finance part of the project
through a bank loan of up to NIS
4,500,000, to be guaranteed by Nistec Ltd., its controlling
shareholder.
Mr. Yitzhak Nissan,
Chairman of the Board and Chief Executive Officer,
commented: "The selection of Eltek by this customer attests to the
trust in the Company's technological capabilities. We believe that
this order will advance our competitiveness and brings us a step
closer to increasing the number of orders from this customer and
from additional costumers that value the quality and high
reliability of our printed circuit boards".
About Eltek
Eltek - "Innovation Across the Board", is a global manufacturer
and supplier of technologically advanced solutions in the field of
printed circuit boards (PCBs), and is the Israeli leader in this
industry. PCBs are the core circuitry of most electronic devices.
Eltek specializes in the manufacture and supply of complex and high
quality PCBs, HDI, multilayered and flex-rigid boards for the
high-end market. Eltek has ITAR, AS-9100 and NADCAP Electronics
permits and its customers include top of the line companies in the
defense, aerospace and medical industries in Israel, the United
States, Europe and
Asia.
Eltek was founded in 1970. The Company's headquarters, and
R&D, production and marketing center is located in Israel. Eltek operates also through its
subsidiaries in North America in
Europe and by agents and
distributors in Europe,
India, South Africa and South America.
For more information, visit Eltek's web site at
http://www.nisteceltek.com.
Forward Looking Statements:
Certain matters discussed in this news release are
forward-looking statements that involve a number of risks and
uncertainties including, but not limited to statements regarding
expected results in future quarters, risks in product and
technology development and rapid technological change, product
demand, the impact of competitive products and pricing, market
acceptance, the sales cycle, changing economic conditions and other
risk factors detailed in the Company's Annual Report on Form 20-F
and other filings with the United States Securities and Exchange
Commission.
Investor Contact: Amnon
Shemer, Chief Financial Officer,
amnons@nisteceltek.com, +972-3-9395023
SOURCE Eltek Ltd.