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.
Press Release
Eltek Reports 2018 First Quarter Financial Results
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Revenues of $8.9 million
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·
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Gross profit of $444,000
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PETACH-TIKVA, Israel, June 27, 2018 - 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 March 31, 2018.
Mr. Yitzhak Nissan
, Chairman of the Board and
Chief Executive Officer
, commented: "Our revenues in the first quarter of 2018 increased to $8.9 million, compared to revenues of $8.5 million in the first quarter of 2017. While we are still facing challenges in our manufacturing operations, we are deploying our best resources to resolve them."
Highlights of the First Quarter of 2018 compared to the First Quarter of 2017
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·
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Revenues
for the first quarter of 2018 were $8.9 million compared to revenues of $8.5 million in the first quarter of 2017;
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·
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Gross profit
was $444,000 (5.0% of revenues) compared to gross profit of $485,000 (5.7% of revenues) in the first quarter of 2017;
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·
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Operating loss
was $626,000 compared to an operating loss of $630,000 in the first quarter of 2017;
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Net loss
was $670,000, or $0.33 per fully diluted share compared to a net loss of $814,000, or $0.40 per fully diluted share, in the first quarter of 2017;
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·
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EBITDA
was a negative $185,000 (2.1% of revenues) compared to a negative EBITDA of $210,000 (2.5% of revenues), in the first quarter of 2017;
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Net cash used
in operating activities
amounted to $859,000 compared to net cash used in operating activities of $776,000 in the first quarter of 2017.
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Conference Call
Today, Wednesday, June 27, 2018, at 9:00 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:
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United States:
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1-888-668-9141
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Israel:
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03-9180609
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International:
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+972-3-9180609
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At:
9:00 a.m. Eastern Time
6:00 a.m. Pacific Time
16:00 p.m. Israel Time
A replay of the call will be available through the Investor Info section on Eltek’s corporate website at
http://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 (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 is ITAR compliant and has AS-9100 and NADCAP Electronics certifications. Its customers include leading 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, R&D, production and marketing center are located in Israel. Eltek also operates through its subsidiaries in North America and 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
.
Use of Non-GAAP Financial Information
The Company reports financial results in accordance with U.S. GAAP and herein provides some non-GAAP measures, including EBITDA. These non-GAAP measures are not in accordance with, nor are they a substitute for, GAAP measures. These 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 the non-GAAP measures presented to evaluate and manage the Company’s operations internally. The Company 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
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Eltek Ltd.
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Consolidated Statements of Operations
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(In thousands US$, except per share data)
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Three months ended
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March 31,
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2018
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2017
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Revenues
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|
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8,943
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|
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8,467
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Costs of revenues
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(8,499
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)
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(7,983
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)
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Gross profit
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444
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485
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Selling, general and administrative expenses
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(1,069
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)
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(1,095
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)
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R&D expenses, net
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(1
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)
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(19
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)
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Operating profit (loss)
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(626
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)
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(630
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)
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Financial expenses, net
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(27
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)
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(177
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)
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Profit (loss) before other income, net
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(653
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)
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(807
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)
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Other income, net
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0
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16
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Profit (loss) before income tax expenses
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(653
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)
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(791
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)
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Tax expenses
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(17
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)
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(23
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)
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Net Profit (loss)
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(670
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)
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(814
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)
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Earnings per share
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Basic and diluted net gain (loss) per ordinary share
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(0.33
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)
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(0.40
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)
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Weighted average number of ordinary shares used to compute basic and diluted net gain (loss) per ordinary share (in thousands)
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2,029
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2,029
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Eltek Ltd.
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Consolidated Balance Sheets
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(In thousands US$)
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March 31,
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March 31,
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2018
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2017
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Assets
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Current assets
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Cash and cash equivalents
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435
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1,029
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Receivables: Trade, net of provision for doubtful accounts
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8,415
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7,007
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Other
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808
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160
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Inventories
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4,395
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3,992
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Prepaid expenses
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241
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|
263
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Total current assets
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14,294
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12,451
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Deferred taxes
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0
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(12
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)
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Assets held for employees' severance benefits
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56
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53
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Fixed assets, less accumulated depreciation
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8,075
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8,871
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Intangible asset
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0
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341
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Total assets
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22,425
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|
|
|
21,704
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Liabilities and Shareholder's equity
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Current liabilities
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Short-term credit and current maturities of long-term debts
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8,961
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3,918
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|
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Accounts payable: Trade
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|
6,304
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|
|
|
5,785
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Other
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3,860
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|
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3,853
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Total current liabilities
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19,125
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|
|
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13,556
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Long-term liabilities
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Long term debt, excluding current maturities
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306
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|
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1,803
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Employee severance benefits
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240
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|
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151
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Total long-term liabilities
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546
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1,954
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Equity
|
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Ordinary shares, NIS 0.6 par value authorized 50,000,000 shares, issued and outstanding 10,142,762
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1,985
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|
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1,985
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Additional paid-in capital
|
|
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17,270
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|
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|
17,270
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Cumulative foreign currency translation adjustments
|
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2,380
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|
|
|
2,189
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Capital reserve
|
|
|
695
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|
|
|
695
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Accumulated deficit
|
|
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(19,576
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)
|
|
|
(15,945
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)
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Shareholders' equity
|
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2,754
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|
|
|
6,194
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Total liabilities and shareholders' equity
|
|
|
22,425
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|
|
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21,704
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