PETACH-TIKVA, Israel,
Jan. 9, 2020 /PRNewswire/ -- Eltek
Ltd. (NASDAQ: ELTK), a global manufacturer and supplier of
technologically advanced solutions in the field of printed circuit
boards, announced today that following our July 24 2017 Press Release, the governmental
authority has exercised its option to extend the contract and
placed a follow-on order to an existing project in an amount of up
to approximately $1.4 million. The
customer extended the project for an additional two years period,
during which Eltek will be required to meet agreed milestones.
Payments to Eltek shall be made subject to the fulfillment of
each milestone. The extension of the project is expected to
generate total aggregate revenues of approximately $1.4 million. In addition, to enable the
execution of the project, the costumer shall lend the Company, for
no consideration, equipment in a total value of approximately
$630,000.
Mr. Eli Yaffe, Chief
Executive Officer, commented: "The original selection of
Eltek by this customer attests to the trust in the Company's
technological capabilities. Eltek successfully met the initial
milestones of the project and met the customer's expectations. As a
result, the governmental authority decided to extend the project
for an additional two years. Eltek believes that first generation
of the developed product will result in additional purchase orders
for products in an amount that we cannot quantify at this point.
Eltek also believes that the second generation product that will be
developed during the extension period will create an advanced
product which will increase Eltek's competitiveness and brings
Eltek a step closer to becoming a world class provider of high-end
technology."
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
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:
Alon Mualem
Chief Financial Officer
alonm@nisteceltek.com
+972-3-9395023
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SOURCE Eltek Ltd.