FORM 6 - K

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

Report of Foreign Private Issuer

Pursuant to Rule 13a - 16 or 15d -16
Under the Securities Exchange Act of 1934

For the Month of August 2017

Commission file number 000-28884

Eltek Ltd.
 (Name of Registrant)

Sgoola Industrial Zone, Petach Tikva, Israel
 (Address of principal executive office)

Indicate by check mark whether the registrant files or will file annual reports under cover Form 20-F or Form 40-F.

Form 20-F ☒          Form 40-F ☐

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(1): ___________
 
Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(7): ___________

This Form 6-K is being incorporated by reference into the Registrant’s Form S-8 Registration Statements File Nos. 333-130611 and 333-123559.

 
Signature
 
Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this Report to be signed on its behalf by the undersigned, thereunto duly authorized.
 
 
Eltek Ltd.
(Registrant)
 
       
By:
/s/ Amnon Shemer  
    Amnon Shemer  
   
Vice President, Finance and
Chief Financial Officer
 

Dated:  August 14, 2017
 
Press Release
 
Eltek Reports 2017 Second Quarter Financial Results

·
Revenues of $7.5million in the second quarter of 2017
·
Gross profit of $134,000
·
Net loss of $1.1 million

PETACH-TIKVA, Israel, August 14, 2017 - Eltek Ltd. (NASDAQ:   ELTK ), a global manufacturer and supplier of technologically advanced solutions in the field of printed circuit boards, announced today its financial results for the quarter ended June 30, 2017.

Mr. Yitzhak Nissan , Chairman of the Board and Chief Executive Officer , commented: "Our sales in the second   quarter were $7.5 million, 14.6% lower than the second   quarter of 2016, excluding Kubatronik. The decrease was primarily attributable to the continued competition in the local market and weakness in our global operations.
 
The Company is vigorously continuing the implementation of efficiency measures to its operating systems, which now support a higher sales rate relative to the rate prior to such implementation. Furthermore, the market is indicating a positive momentum with an increase in the frequency of incoming orders beginning this July. This increase includes a significant order from a governmental authority that we announced on July 24, 2017.
 
As previously released, we have enhanced our marketing and sales forces in Israel, Europe and the United States, alongside our efforts made to streamline expenses.
 
We are determined to bring the Company back to profitability in the near future. I believe that our actions to date, along with the renewal of manufacturing equipment that we are currently implementing, will assist us to reach these goals quickly and efficiently.

"When comparing the results to the second   quarter and the first six months of 2017, please note that the operations of Kubatronik Leiterplatten GmbH were included in Eltek's results during the comparable period in 2016. Therefore, selected financial information is also presented on a proforma basis, excluding Kubatronik's results in 2016 (first six months and second   quarter)," Mr. Nissan concluded.

Highlights of the Second Quarter of 2017

·
Revenues for the second quarter of 2017 were $7.5 million compared to $9.9 million in the second quarter of 2016 ($8.8 million excluding Kubatronik);
 
·
Gross profit was $134,000 (1.8% of revenues) compared to gross profit of $1.5 million (14.8% of revenues) in the second quarter of 2016 ($1.4 million or 16.3% of revenues excluding Kubatronik); The decrease in gross profit and gross profit margins reflects the decreased sales, while a significant portion of our cost of sales remained constant.
 
·
Operating loss was $1 million compared to operating profit of $244,000 in the second quarter of 2016 ($373,000 excluding Kubatronik);
 
·
Net loss was $1.1 million or $0.11 per fully diluted share compared to net profit of $213,000 or $0.02 per fully diluted share in the second quarter of 2016 ($327,000 or $0.03 per fully diluted share excluding Kubatronik);.
 
·
EBITDA amounted to $(583,000) compared to EBITDA of $754,000 in the second quarter of 2016 ($809,000 excluding Kubatronik);
 
·
Net cash used by operating activities amounted to $516,000 compared to net cash used by operating activities of $37,000 in the second quarter of 2016. The decline is mainly attributable to the operating results in this quarter.
 
·
Cash and cash equivalents as of June 30, 2017 were $792,000 compared to $894,000 as of June 30, 2016.

Highlights for the First Six Months of 2017

·
Revenues for the first six months of 2017 were $16 million compared to $19.7 million in the first six months of 2016 ($17.4 million excluding Kubatronik);
 
·
Gross profit was $619,000 (3.9% of revenues) compared to gross profit of $2.4 million (12.2% of revenues) in the first six months of 2016 ($2.2 million or 12.5% of revenues excluding Kubatronik);
 
·
Operating loss was $1.6 million compared to operating loss of $49,000 in the first six months of 2016 ($31,000 profit excluding Kubatronik);
 
·
Net loss was $1.9 million, or $0.19 per fully diluted share compared to net loss of $171,000, or $0.02 per fully diluted share in the first six months of 2016 ($82,000 or $0.01 per fully diluted share excluding Kubatronik);
 
·
EBITDA amounted to $(794,000) compared to EBITDA of $921,000 in the first six months of 2016 ($871,000 excluding Kubatronik);
 
·
Net cash used by operating activities amounted to $1.3 million compared to net cash provided by operating activities of $853,000 in the first six months of 2016. The decline is mainly attributable to the operating results in this period.
 
Conference Call
 
Today, Monday August 14, 2017 at 9:30 a.m. Eastern Time, Eltek will conduct a conference call to discuss the results. The call will feature remarks by Yitzhak Nissan, Chairman of the Board of Directors and Chief Executive Officer, Roberto Tulman, Deputy CEO and Chief Technology Officer and Amnon Shemer, Chief Financial Officer.
 
To participate, please call the following teleconference numbers. Please allow for additional time to connect prior to the call:
 
United States:
1-888-668-9141
Israel:
03-9180610
International:
+972-3-9180610

                                  At:
                  9:30 a.m. Eastern Time
                  6:30 a.m. Pacific Time
                  16:30 p.m. Israel Time

A replay of the call will be available through the Investor Info section on Eltek’s corporate website at www.nisteceltek.com approximately 24 hours after the conference call is completed and will be archived for 30 days.

(Tables follow)

About Eltek
 
Eltek – "Innovation across the board", is a global manufacturer and supplier of technologically advanced solutions in the field of Printed Circuit Boards, 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 are located in Israel. Eltek also operates through its subsidiaries, Eltek USA (100%) in North America and Kubatronik (79%) in Europe, and by agents and distributors in Europe, India, South Africa and South America.
 
For additional information, visit Eltek's web site at   www.nisteceltek.com .
 
Use of Non-GAAP Financial Information
 
The Company reports financial results in accordance with U.S. GAAP and includes some non-GAAP measures, such as EBITDA and proforma financial information. These non-GAAP measures are not in accordance with, nor are they a substitute for, GAAP measures. The non-GAAP measures are intended to supplement the Company’s presentation of its financial results that are prepared in accordance with GAAP. The Company uses EBITDA to evaluate and manage its  internal operations and is also providing this information to assist investors in performing additional financial analysis. Reconciliation between the Company's results on a GAAP and non-GAAP basis is provided in a table below.
 
Forward Looking Statement:
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
 
Eltek Ltd.
Consolidated Statements of Operations
(In thousands US$, except per share data)
 
   
Three months ended
   
Six months ended
 
   
June 30,
   
June 30,
 
   
2017
   
2016
   
2017
   
2016
 
             
Revenues
   
7,492
     
9,904
     
15,960
     
19,705
 
Costs of revenues
   
(7,358
)
   
(8,442
)
   
(15,341
)
   
(17,305
)
                                 
Gross profit
   
134
     
1,462
     
619
     
2,400
 
                                 
Selling, general and administrative expenses
   
(1,138
)
   
(1,186
)
   
(2,233
)
   
(2,384
)
                                 
R&D expenses, net
   
(15
)
   
(32
)
   
(34
)
   
(64
)
                                 
Operating profit (loss)
   
(1,019
)
   
244
     
(1,649
)
   
(49
)
                                 
Financial expenses, net
   
(41
)
   
(37
)
   
(218
)
   
(98
)
                                 
Profit (loss) before other income, net
   
(1,060
)
   
207
     
(1,867
)
   
(146
)
                                 
Other income, net
   
0
     
(0
)
   
15
     
0
 
                                 
Profit (loss) before income tax expenses
   
(1,060
)
   
207
     
(1,852
)
   
(146
)
                                 
Tax expenses
   
(27
)
   
(25
)
   
(50
)
   
(48
)
                                 
Net Profit (loss)
   
(1,087
)
   
182
     
(1,901
)
   
(194
)
                                 
Net loss attributable to non controlling interest
   
0
     
(31
)
   
0
     
(23
)
                                 
Net Profit (loss) attributable to Eltek Ltd.
   
(1,087
)
   
213
     
(1,901
)
   
(171
)
                                 
Earnings per share
                               
Basic and diluted net gain (loss) per ordinary share
   
(0.11
)
   
0.02
     
(0.19
)
   
(0.02
)
                                 
Weighted average number of ordinary shares
                               
used to compute basic and diluted net gain (loss) per
                               
ordinary share (in thousands)
   
10,143
     
10,143
     
10,143
     
10,143
 

 
Eltek Ltd.
Consolidated Balance Sheets
(In thousands US$)
 
   
June 30,
   
June 30,
 
   
2017
   
2016
 
Assets
           
             
Current assets
           
Cash and cash equivalents
   
792
     
894
 
Receivables:   Trade, net of provision for doubtful accounts
   
6,097
     
7,548
 
  Other
   
171
     
222
 
Inventories
   
4,305
     
4,618
 
Prepaid expenses
   
394
     
227
 
                 
Total current assets
   
11,759
     
13,509
 
                 
Deferred taxes
   
0
     
1,066
 
                 
Assets held for employees' severance benefits
   
55
     
49
 
                 
Fixed assets, less accumulated depreciation
   
8,966
     
9,747
 
                 
Intangible asset
   
355
     
301
 
                 
Total assets
   
21,135
     
24,672
 
                 
Liabilities and Shareholder's equity
               
                 
Current liabilities
               
Short-term credit and current maturities of long-term debts
   
4,570
     
1,373
 
Accounts payable: Trade
   
5,382
     
5,778
 
                           Other
   
4,008
     
4,611
 
                 
Total current liabilities
   
13,960
     
11,762
 
                 
Long-term liabilities
               
Long term debt, excluding current maturities
   
1,692
     
2,423
 
Employee severance benefits
   
157
     
296
 
                 
Total long-term liabilities
   
1,849
     
2,719
 
                 
Equity
               
Ordinary shares, NIS 0.6  par value authorized 50,000,000 shares, issued and outstanding 10,142,762
   
1,985
     
1,985
 
Additional paid-in capital
   
17,270
     
17,270
 
Cumulative foreign currency translation adjustments
   
2,408
     
2,037
 
Capital reserve
   
695
     
695
 
Accumulated deficit
   
(17,032
)
   
(11,679
)
Shareholders' equity
   
5,326
     
10,308
 
Non controlling interest
   
0
     
(117
)
Total equity
   
5,326
     
10,191
 
Total liabilities and shareholders' equity
   
21,135
     
24,672
 

 
Eltek Ltd.
Unaudited Non-GAAP EBITDA Reconciliations
(In thousands US$)

 
Non-GAAP EBITDA Reconciliations
 
Three months ended
   
Six months ended
 
   
June 30,
   
June 30,
 
   
2017
   
2016
   
2017
   
2016
 
                         
GAAP net Income (loss)
   
(1,087
)
   
213
     
(1,901
)
   
(171
)
Add back items:
                               
                                 
Financial expenses (income), net
   
41
     
37
     
218
     
98
 
Income tax expense
   
27
     
25
     
50
     
48
 
Depreciation and amortization
   
436
     
479
     
840
     
946
 
Adjusted EBITDA
   
(583
)
   
754
     
(794
)
   
921
 

 
Eltek Ltd.
Consolidated Statement of  Cash flow
(In thousands US$, except per share data)
 
   
Three months ended
   
Six months ended
 
   
June 30,
   
June 30,
 
   
2017
   
2016
   
2017
   
2016
 
                         
Cash flows from operating activities:
                       
                         
Net Income (loss)
   
(1,087
)
   
182
     
(1,901
)
   
(194
)
                               
Adjustments to reconcile net loss to net
                   
 
         
  cash flows provided by operating activities:
                   
 
         
Depreciation and amortization
   
436
     
479
     
852
     
946
 
Capital lose on disposal of fixed assets, net
   
-
     
-
     
(13
)
   
-
 
Revaluation of long term loans
   
-
     
-
     
(0
)
   
1
 
Decrease (increase) in Deferred Tax
   
(12
)
   
7
     
3
     
14
 
     
424
     
487
     
842
     
961
 
                                 
Decrease (increase) in trade receivables
   
1,152
     
(15
)
   
209
     
575
 
Decrease (increase) in other receivables and prepaid expenses
   
(122
)
   
(17
)
   
(64
)
   
18
 
Decrease (increase) in inventories
   
(154
)
   
(232
)
   
6
     
(106
)
Increase (decrease) in trade payables
   
(735
)
   
(435
)
   
(206
)
   
(354
)
Increase (decrease) in other liabilities and accrued expenses
   
7
     
(11
)
   
(176
)
   
(49
)
Increase (decrease) in employee severance benefits, net
   
(1
)
   
5
     
(2
)
   
3
 
     
147
     
(706
)
   
(233
)
   
86
 
                                 
Net cash provided by operating activities
   
(516
)
   
(37
)
   
(1,292
)
   
853
 
 
   
Three months ended
   
Six months ended
 
   
June 30,
   
June 30,
 
   
2017
   
2016
   
2016
   
2015
 
                         
Cash flows from investing activities:
                       
Owners investment
                       
Purchase of fixed assets
   
(70
)
   
(238
)
   
(161
)
   
(330
)
Purchase of Intangible asset
   
-
     
(14
)
   
-
     
(21
)
Net cash used in investing activities
   
(70
)
   
(251
)
   
(161
)
   
(351
)
                                 
Cash flows from financing activities:
                               
Increase (decrease) in short- term credit
   
(1,020
)
   
577
     
(161
)
   
91
 
Increase (decrease) in short- term shareholder loan
   
1,430
     
-
     
1,430
     
-
 
Repayment of long-term loans from bank
   
(207
)
   
(175
)
   
(407
)
   
(330
)
Proceeds from long-term loans
   
131
     
-
     
167
     
-
 
Repayment of credit from fixed asset payables
   
(24
)
   
(137
)
   
(129
)
   
(394
)
Net cash provided by (used in) financing activities
   
309
     
265
     
901
     
(634
)
                                 
Effect of translation adjustments
   
316
     
(20
)
   
111
     
(12
)
                                 
Net increase (decrease) in cash and cash equivalents
   
(237
)
   
(44
)
   
(441
)
   
(144
)
                                 
Cash and cash equivalents at beginning of the period
   
1,029
     
938
     
1,234
     
1,038
 
                     
-
     
-
 
Cash and cash equivalents at period end
   
792
     
894
     
792
     
894
 

 
Eltek  ltd.
Proforma (Non-GAAP) Statements of Operations
(In thousands US$, except per share data)
Excluding Kubatronik's operation in 2016
 
   
Solo
   
Solo
 
   
Three months ended
   
Six months ended
 
   
June 30,
   
June 30,
 
   
2017
   
2016
   
2017
   
2016
 
   
Unaudited
   
Unaudited
 
                         
Revenues
   
7,492
     
8,777
     
15,960
     
17,370
 
Costs of revenues
   
(7,358
)
   
(7,347
)
   
(15,341
)
   
(15,206
)
                                 
Gross profit
   
134
     
1,431
     
619
     
2,165
 
                                 
Research and development income, net
   
(15
)
   
(32
)
   
(34
)
   
(64
)
                                 
Selling, general and administrative expenses
   
(1,138
)
   
(1,026
)
   
(2,233
)
   
(2,070
)
                                 
Operating profit (loss)
   
(1,019
)
   
373
     
(1,649
)
   
31
 
                                 
Financial expenses, net
   
(41
)
   
(21
)
   
(218
)
   
(65
)
                                 
Profit (loss) before other income, net
   
(1,060
)
   
352
     
(1,867
)
   
(34
)
                                 
Other income, net
   
0
     
0
     
15
     
0
 
                                 
Profit (loss) before income tax expenses
   
(1,060
)
   
352
     
(1,852
)
   
(34
)
                                 
Income tax (expenses), net
   
(27
)
   
(25
)
   
(50
)
   
(48
)
                                 
Net Profit (loss)
   
(1,087
)
   
327
     
(1,901
)
   
(82
)
                                 
Diluted net loss per ordinary share
   
(0.11
)
   
0.03
     
(0.19
)
   
(0.01
)
                                 
Weighted average number of ordinary shares
                               
used to compute diluted net loss per
                               
ordinary share (in thousands)
   
10,143
     
10,143
     
10,143
     
10,143
 

 
Eltek  ltd.
Proforma (Non-GAAP) Balance Sheets
(In thousands US$)
Excluding Kubatronik's operation in 2016
 
 
   
June 30,
 
   
2017
   
2016
 
   
Unaudited
 
Assets
           
             
Current assets
           
Cash and cash equivalents
   
792
     
891
 
Receivables:   Trade, net of provision for doubtful accounts
   
6,097
     
7,108
 
                  Other
   
171
     
1,287
 
Inventories
   
4,305
     
4,324
 
Prepaid expenses
   
394
     
227
 
                 
Total current assets
   
11,759
     
13,837
 
                 
Deferred taxes
   
0
     
1,066
 
                 
Assets held for employees' severance benefits
   
55
     
49
 
                 
Fixed assets, less accumulated depreciation
   
8,966
     
9,118
 
                 
Investment
           
(440
)
                 
Intangible asset
   
355
     
301
 
                 
Total assets
   
21,135
     
23,931
 
                 
Liabilities and Shareholder's equity
               
                 
Current liabilities
               
Short-term credit and current maturities of long-term debts
   
4,570
     
1,373
 
Accounts payable: Trade
   
5,382
     
5,366
 
                           Other
   
4,008
     
4,403
 
                 
Total current liabilities
   
13,960
     
11,142
 
                 
Long-term liabilities
               
Long term debt, excluding current maturities
   
1,692
     
2,236
 
Employee severance benefits
   
157
     
246
 
                 
Total long-term liabilities
   
1,849
     
2,482
 
                 
Equity
               
Ordinary shares, NIS 0.6  par value authorized 50,000,000 shares, issued and outstanding 6,610,107 as of December 31, 2011.
   
1,985
     
1,985
 
Additional paid-in capital
   
17,270
     
17,270
 
Cumulative foreign currency translation adjustments
   
2,408
     
2,036
 
Capital reserve
   
695
     
695
 
Accumulated deficit
   
(17,032
)
   
(11,679
)
Shareholders' equity
   
5,326
     
10,307
 
Non controlling interest
   
0
     
0
 
Total equity
   
5,326
     
10,307
 
Total liabilities and shareholders' equity
   
21,135
     
23,931
 

 
Eltek Ltd.
 
Proforma Unaudited Non-GAAP EBITDA Reconciliations
 
(In thousands US$)
 
Excluding Kubatronik's operation in 2016
 
 
Non-GAAP EBITDA Reconciliations
 
Three months ended
   
six months ended
 
   
June 30,
   
June 30,
   
June 30,
   
June 30,
 
   
2017
   
2016
   
2017
   
2016
 
                         
GAAP net Income (loss)
   
(1,087
)
   
327
     
(1,901
)
   
(82
)
Add back items:
                               
                                 
Financial expenses (income), net
   
41
     
21
     
218
     
65
 
Income tax expense
   
27
     
25
     
50
     
48
 
Depreciation and amortization
   
436
     
436
     
840
     
840
 
Adjusted EBITDA
   
(583
)
   
809
     
(794
)
   
871
 

 
Eltek Ltd.
 
Consolidated Statement of  Cash flow
 
(In thousands US$, except per share data)
 
Excluding Kubatronik's operation in 2016
 
 
   
Three months ended
   
Six months ended
 
   
June 30,
   
June 30,
 
   
2017
   
2016
   
2017
   
2016
 
                         
Cash flows from operating activities:
                       
Net Income (loss)
   
(1,087
)
   
213
     
(1,901
)
   
(171
)
                                 
Adjustments to reconcile net loss to net
                               
 cash flows provided by operating activities:
                               
Depreciation and amortization
   
436
     
441
     
852
     
870
 
Capital lose on disposal of fixed assets, net
   
-
             
(13
)
   
-
 
Revaluation of long term loans
   
-
     
7
     
(0
)
   
14
 
Decrease (increase) in Deferred Tax
   
(12
)
   
-
     
3
     
1
 
Impairment of goodwill
   
-
     
111
     
-
     
85
 
     
424
     
559
     
842
     
971
 
                                 
Decrease (increase) in trade receivables
   
1,152
     
(38
)
   
209
     
662
 
Decrease (increase) in other receivables and prepaid expenses
   
(122
)
   
(4
)
   
(64
)
   
10
 
Decrease (increase) in inventories
   
(154
)
   
(303
)
   
6
     
(154
)
Increase (decrease) in trade payables
   
(735
)
   
(440
)
   
(206
)
   
(448
)
Increase (decrease) in other liabilities and accrued expenses
   
7
     
(7
)
   
(176
)
   
(82
)
Increase (decrease) in employee severance benefits, net
   
(1
)
   
4
     
(2
)
   
4
 
     
147
     
(789
)
   
(233
)
   
(8
)
                                 
Net cash provided by operating activities
   
(516
)
   
(17
)
   
(1,292
)
   
792
 
 
   
Three months ended
   
Six months ended
 
   
June 30,
   
June 30,
 
   
2017
   
2016
   
2016
   
2015
 
                         
Cash flows from investing activities:
                       
Owners investment
                       
Purchase of fixed assets
   
(70
)
   
(235
)
   
(161
)
   
(335
)
Purchase of Intangible asset
   
-
     
-
     
-
     
-
 
Purchase of Intangible asset
   
-
     
(14
)
   
-
     
(21
)
Net cash used in investing activities
   
(70
)
   
(249
)
   
(161
)
   
(356
)
                                 
Cash flows from financing activities:
                               
Increase (decrease) in short- term credit
   
(1,020
)
   
577
     
(161
)
   
91
 
Increase (decrease) in short- term shareholder loan
   
1,430
     
-
     
1,430
     
-
 
Repayment of long-term loans from bank
   
(207
)
   
(175
)
   
(407
)
   
(330
)
Proceeds from long-term loans
   
131
     
-
     
167
     
-
 
Repayment of credit from fixed asset payables
   
(24
)
   
(100
)
   
(129
)
   
(324
)
Net cash provided by (used in) financing activities
   
309
     
301
     
901
     
(564
)
                                 
Effect of translation adjustments
   
316
     
(17
)
   
111
     
21
 
                                 
Net increase (decrease) in cash and cash equivalents
   
(237
)
   
18
     
(441
)
   
(107
)
                                 
Cash and cash equivalents at beginning of the period
   
1,029
     
872
     
1,234
     
998
 
                                 
Cash and cash equivalents at period end
   
792
     
891
     
792
     
891
 

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