PETACH-TIKVA, Israel,
Feb. 18, 2021 /PRNewswire/
-- Eltek Ltd. (NASDAQ: ELTK), a global manufacturer and
supplier of technologically advanced solutions in the field of
printed circuit boards, today provided an update regarding the
Company's revenues in the year ended December 31, 2020 and the impact the worldwide
shortage of Pyralux AP, a key material produced by DuPont that is
used in the production of flexible and flex–rigid printed circuit
boards.
Based on a preliminary and unaudited financial report, the
Company expects to report revenues of approximately $36.7 million for the year ended December 31, 2020 compared to revenues of
$34.8 million reported for the year
ended December 31, 2019, growth of
5.5% in revenues year over year, reflecting the Company's continued
ability to operate successfully during the COVID-19 pandemic. The
2020 financial information is unaudited and subject to audit
changes.
As previously announced, during December
2020 we successfully completed a rights offering to our
shareholders providing gross proceeds of $5.7 million to the Company. The proceeds from
the offering reduced our indebtedness to Nistec, our controlling
shareholder, and improved the Company's balance sheet and its
financial ratios.
The Company also indicated that its operations in the first
quarter of 2021 will likely be negatively impacted as a result of
the worldwide shortage of Pyralux AP, a laminate produced by DuPont
that is used in the production of flexible and flex–rigid printed
circuit boards. The Company is presently introducing an alternative
raw material for its production of PCBs to its customers. While
revenues are likely to be impacted in the first quarter, the
Company expects that revenues will rebound during following
quarters and lost sales will be recovered upon the expected
availability of Pyralux AP and authorization of alternative raw
material by Eltek's customers.
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
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 Statement:
Some of the statements included in this press release may be
forward-looking statements that involve a number of risks and
uncertainties including, but not limited to expected results in
future quarters, the impact of the Coronavirus on the economy and
our operations, 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. Any
forward-looking statements set forth in this press release speak
only as of the date of this press release. The information found on
our website is not incorporated by reference into this press
release and is included for reference purposes only.
Investor Contact:
Alon
Mualem
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Chief Financial
Officer
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alonm@nisteceltek.com
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+972-3-9395023
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SOURCE Eltek Ltd.