PETACH TIKVA, Israel, Aug. 15,
2024 /PRNewswire/ -- Eltek Ltd. (NASDAQ: ELTK), a
global manufacturer and supplier of technologically advanced
solutions in the field of printed circuit boards (PCBs), today
announced its financial results for the quarter ended June 30, 2024.
Second Quarter 2024 Highlights
- Revenues were $10.5 million
- Operating profit was $0.4
million
- Profit before tax was $0.9
million
- Net income was $0.8 million or
$0.11 per fully diluted share
- As of June 30, 2024 cash and cash
equivalents amounted $18.3
million.
"Eltek has demonstrated consistent growth over the past several
quarters, driven by our commitment to innovation and customer
satisfaction. However, this quarter, we experienced a decrease in
revenues and profits compared to the previous quarter and the
corresponding quarter last year. This decline is attributed to a
significant timing shift by some key customers, who prioritized
orders for PCBs with medium technology requirements, resulting in
lower prices and margins. Orders for more complex, higher-margin
PCBs were pushed back and are scheduled to be produced in the third
quarter. While this has impacted our short-term financial
performance, we remain confident in our long-term strategy and
market position," said Eli Yaffe,
CEO of Eltek.
"We expect to return in in the third quarter to the
profitability parameters of previous quarters, as product mix
strategies are realigned. Our backlog as of today increased by
30% since the beginning of 2024. This increase will support our
planned growth in revenues and profitability. We remain committed
to delivering value to our shareholders and are taking the
necessary steps to ensure that we continue our growth trend. Our
team is focused on optimizing our product offerings and operational
efficiencies to drive profitability and sustain our market
leadership," concluded Mr. Yaffe.
Second Quarter 2024 GAAP Financial Results
Revenues for the second quarter of 2024 were
$10.5 million compared to
$11.0 million in the second quarter
of 2023.
Gross profit for the second quarter of 2024 was
$1.6 million (16% of revenues)
compared to $3.0 million (27% of
revenues) in the second quarter of 2023.
Operating profit for the second quarter of 2024 was
$0.4 million compared to operating
profit of $1.4 million in the second
quarter of 2023.
Financial income for the second quarter of 2024 was
$0.5 million compared to financial
income of $0.2 million in the second
quarter of 2023. Financial income primarily results from the
erosion of the NIS against the US dollar.
Profit before income tax for the second quarter of
2024 was $0.9 million compared to
$1.6 million in the second quarter of
2023.
Net income for the second quarter of 2024 was
$0.8 million or $0.11 per fully diluted share compared to net
income of $1.3 million or
$0.22 per fully diluted share in the
second quarter of 2023.
Second Quarter 2024 Non-GAAP Financial Results
EBITDA for the second quarter of 2024 was $0.8 million (7.6% of revenues) compared to
EBITDA of $1.7 million (15.3% of
revenues) in the second quarter of 2023;
First Six Months 2024 GAAP Financial Results
Revenues for the first six months of 2024 were
$22.2 million compared to
$22.5 million in the first six months
of 2023.
Gross profit for the first six months of 2024 was
$4.9 million (22% of revenues)
compared to $6.0 million (26% of
revenues) in the first six months of 2023.
Operating profit for the first six months of 2024 was
$2.1 million compared to operating
profit of $3.0 million in the first
six months of 2023.
Financial income for the first six months of 2024
was $0.8 million compared to
financial income of $0.5 million in
the first six months of 2023. Financial income primarily results
from the erosion of the NIS against the US dollar.
Profit before income tax for the first six months of
2024 was $3.0 million compared to
$3.5 million in the first six months
of 2023.
Net profit for the first six months of 2024 was
$2.5 million or $0.38 per fully diluted share compared to net
profit of $2.9 million or
$0.49 per fully diluted share in the
first six months of 2023.
First Six Months 2024 Non-GAAP Financial Results
EBITDA for the first six months of 2024 was a
$2.9 million (13% of
revenues) compared to EBITDA of $3.6
million (16% of revenues) in the first six months of
2023.
About our 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 the table below.
Conference Call
Today, Thursday, August 15, 2024,
at 9:30am Eastern Time (16:30pm Israel Time, 6:30am Pacific Time), Eltek will conduct a
conference call to discuss the results. The call will feature
remarks by Eli Yaffe, Chief
Executive Officer and Ron Freund,
Chief Financial Officer.
To participate, please call the following teleconference
numbers. Please allow for additional time to connect prior to the
call:
United States:
1-866-860-9642
Israel: 03-918-0691
International: +972-3-918-0691
To Access a Replay of the Call
A replay of the call will be available for 30 days on the
Investor Info section on Eltek's corporate website at
http://www.nisteceltek.com approximately 24 hours after the
conference call is completed.
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 an Israeli leading company 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
subsidiary 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.
Logo: https://mma.prnewswire.com/media/881148/Eltek_Logo.jpg
Investor Contact
Ron
Freund
Chief Financial Officer
Investor-Contact@nisteceltek.com
+972-3-939-5023
|
Eltek
Ltd.
|
|
Consolidated
Statements of Income
|
|
U.S dollars in
thousands (except per share data)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months
ended
|
|
Six months
ended
|
|
|
|
|
June 30,
|
|
June 30,
|
|
|
|
|
2024
|
|
2023
|
|
2024
|
|
2023
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenues
|
|
10,466
|
|
11,043
|
|
22,249
|
|
22,513
|
|
|
|
Costs of
revenues
|
|
(8,830)
|
|
(8,091)
|
|
(17,361)
|
|
(16,546)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross
profit
|
|
1,636
|
|
2,952
|
|
4,888
|
|
5,967
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Research and
development expenses, net
|
|
(47)
|
|
(15)
|
|
(62)
|
|
(24)
|
|
|
|
Selling, general and
administrative expenses
|
|
(1,184)
|
|
(1,543)
|
|
(2,700)
|
|
(2,960)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
profit
|
|
405
|
|
1,394
|
|
2,126
|
|
2,983
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Financial income,
net
|
|
489
|
|
190
|
|
839
|
|
477
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income before income
tax
|
|
894
|
|
1,584
|
|
2,965
|
|
3,460
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income tax
expenses
|
|
143
|
|
271
|
|
475
|
|
585
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
income
|
|
751
|
|
1,313
|
|
2,490
|
|
2,875
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings per
share:
|
|
|
|
|
|
|
|
|
|
|
|
Basic and diluted net
profit per ordinary share
|
|
0.11
|
|
0.22
|
|
0.38
|
|
0.49
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average number
of ordinary shares used to compute
|
|
|
|
|
|
|
|
|
|
|
|
basic net profit per
ordinary share (in thousands)
|
|
6,706
|
|
5,908
|
|
6,541
|
|
5,879
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average number
of ordinary shares used to compute
|
|
|
|
|
|
|
|
|
|
|
|
diluted net profit per
ordinary share (in thousands)
|
|
6,764
|
|
5,943
|
|
6,628
|
|
5,897
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Eltek
Ltd.
|
|
Consolidated Balance
Sheets
|
|
U.S dollars in
thousands
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
June 30,
|
|
December 31,
|
|
|
|
|
|
|
|
|
2024
|
|
2023
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Assets
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Current
assets:
|
|
|
|
|
|
|
|
|
|
|
|
Cash and cash
equivalents
|
|
8,877
|
|
9,278
|
|
|
|
|
|
|
|
Short-term bank
deposits
|
|
9,396
|
|
2,862
|
|
|
|
|
|
|
|
Receivables: Trade, net of provision for
doubtful accounts
|
|
9,948
|
|
10,898
|
|
|
|
|
|
|
|
Other
|
|
287
|
|
689
|
|
|
|
|
|
|
|
Inventories
|
|
6,440
|
|
6,135
|
|
|
|
|
|
|
|
Prepaid
expenses
|
|
306
|
|
245
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total current
assets
|
|
35,254
|
|
30,107
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Long term
assets:
|
|
|
|
|
|
|
|
|
|
|
|
Severance pay
fund
|
|
55
|
|
57
|
|
|
|
|
|
|
|
Deferred tax asset,
net
|
|
964
|
|
1,098
|
|
|
|
|
|
|
|
Operating lease right
of use assets
|
|
5,965
|
|
6,555
|
|
|
|
|
|
|
|
Total long term
assets
|
|
6,984
|
|
7,710
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fixed assets, less
accumulated depreciation
|
|
12,669
|
|
9,354
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
Assets
|
|
54,907
|
|
47,171
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Liabilities and
Shareholder's equity
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Current
liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
Accounts payable:
Trade
|
|
5,273
|
|
7,503
|
|
|
|
|
|
|
|
Other
|
|
5,214
|
|
5,689
|
|
|
|
|
|
|
|
Short-term operating
lease liabilities
|
|
763
|
|
789
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total current
liabilities
|
|
11,250
|
|
13,981
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Long-term
liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
Employee severance
benefits
|
|
399
|
|
447
|
|
|
|
|
|
|
|
Long-term operating
lease liabilities
|
|
5,306
|
|
5,871
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total long-term
liabilities
|
|
5,705
|
|
6,318
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Shareholders'
equity:
|
|
|
|
|
|
|
|
|
|
|
|
Ordinary shares of NIS
3.0 par value – Authorized:
10,000,000 shares at June 30, 2024 and December 31,
2023; Issued and outstanding: 6,708,522 shares at June
30, 2024 and 6,020,693 shares at December 31, 2023
|
|
6,006
|
|
5,443
|
|
|
|
|
|
|
|
Additional paid-in
capital
|
|
32,597
|
|
23,587
|
|
|
|
|
|
|
|
Cumulative foreign
currency translation adjustments
|
|
(486)
|
|
783
|
|
|
|
|
|
|
|
Capital
reserve
|
|
2,186
|
|
1,900
|
|
|
|
|
|
|
|
Accumulated
deficit
|
|
(2,351)
|
|
(4,841)
|
|
|
|
|
|
|
|
Total shareholders'
equity
|
|
37,952
|
|
26,872
|
|
|
|
|
|
|
|
Total liabilities
and shareholders' equity
|
|
54,907
|
|
47,171
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Eltek
Ltd.
|
|
Unaudited Non-GAAP
EBITDA Reconciliations
|
|
U.S dollars in
thousands
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months
ended
|
|
Six months
ended
|
|
|
|
June 30,
|
|
June 30,
|
|
|
|
2024
|
|
2023
|
|
2024
|
|
2023
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP net
income
|
|
751
|
|
1,313
|
|
2,490
|
|
2,875
|
|
|
Add back
items:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Financial income,
net
|
|
(489)
|
|
(190)
|
|
(839)
|
|
(477)
|
|
|
Income tax
expenses
|
|
143
|
|
271
|
|
475
|
|
585
|
|
|
Depreciation and
amortization
|
|
388
|
|
301
|
|
753
|
|
630
|
|
|
Non-GAAP
EBITDA
|
|
793
|
|
1,695
|
|
2,879
|
|
3,613
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Eltek
Ltd.
|
|
Consolidated
Statement of Cash flow
|
|
U.S dollars in
thousands
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months
ended
|
|
Six months
ended
|
|
|
|
|
June 30,
|
|
June 30,
|
|
|
|
|
2024
|
|
2023
|
|
2024
|
|
2023
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash flows from
operating activities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Income
|
|
751
|
|
1,313
|
|
2,490
|
|
2,875
|
|
|
|
Adjustments to
reconcile net income to net cash flows
|
|
|
|
|
|
|
|
|
|
|
|
provided by operating
activities:
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation and
amortization
|
|
388
|
|
301
|
|
753
|
|
630
|
|
|
|
Accrued
interest
|
|
(98)
|
|
-
|
|
(186)
|
|
-
|
|
|
|
Stock-based
compensation
|
|
154
|
|
72
|
|
286
|
|
144
|
|
|
|
Decrease in deferred
tax assets and long term tax receivable
|
|
(100)
|
|
260
|
|
91
|
|
566
|
|
|
|
|
344
|
|
633
|
|
944
|
|
1,340
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Decrease (increase) in
operating lease right-of-use assets
|
|
2
|
|
11
|
|
3
|
|
(22)
|
|
|
|
Decrease (increase) in
trade receivables
|
|
(219)
|
|
(1,896)
|
|
517
|
|
(1,784)
|
|
|
|
Decrease (increase) in
other receivables and prepaid expenses
|
|
234
|
|
214
|
|
309
|
|
(311)
|
|
|
|
Decrease (increase) in
inventories
|
|
(169)
|
|
(496)
|
|
(565)
|
|
(809)
|
|
|
|
Increase (decrease) in
trade payables
|
|
955
|
|
(307)
|
|
(536)
|
|
105
|
|
|
|
Increase (decrease) in
other liabilities and accrued expenses
|
|
(48)
|
|
629
|
|
(249)
|
|
1,477
|
|
|
|
Increase
(decrease) in employee severance benefits, net
|
|
(48)
|
|
17
|
|
(30)
|
|
22
|
|
|
|
|
707
|
|
(1,828)
|
|
(551)
|
|
(1,322)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net cash provided by
operating activities
|
|
1,802
|
|
118
|
|
2,883
|
|
2,893
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash flows from
investing activities:
|
|
|
|
|
|
|
|
|
|
|
|
Purchase of property
and equipment
|
|
(3,215)
|
|
(406)
|
|
(5,947)
|
|
(711)
|
|
|
|
Insurance
Proceeds
|
|
-
|
|
2,000
|
|
-
|
|
2,000
|
|
|
|
Investment in
short-term bank deposits, net
|
|
(132)
|
|
-
|
|
(6,534)
|
|
-
|
|
|
|
Restricted
deposits
|
|
-
|
|
192
|
|
-
|
|
192
|
|
|
|
Net cash provided by
(used in) investing activities
|
|
(3,347)
|
|
1,786
|
|
(12,481)
|
|
1,481
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash flows from
financing activities:
|
|
|
|
|
|
|
|
|
|
|
|
Exercise of
options
|
|
16
|
|
299
|
|
261
|
|
299
|
|
|
|
Repayment of long-term
loans from bank
|
|
-
|
|
(1,768)
|
|
-
|
|
(3,348)
|
|
|
|
Issuance of shares,
net
|
|
-
|
|
-
|
|
9,312
|
|
-
|
|
|
|
Net cash provided by
(used in) financing activities
|
|
16
|
|
(1,469)
|
|
9,573
|
|
(3,049)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Effect of translation
adjustments
|
|
(204)
|
|
(164)
|
|
(376)
|
|
(361)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net increase (decrease)
in cash and cash equivalents
|
|
(1,733)
|
|
271
|
|
(401)
|
|
964
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash and cash
equivalents at the beginning of the period
|
|
10,610
|
|
8,059
|
|
9,278
|
|
7,366
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash and cash
equivalents at the end of the period
|
|
8,877
|
|
8,330
|
|
8,877
|
|
8,330
|
|
|
View original
content:https://www.prnewswire.com/news-releases/eltek-ltd-reports-2024-second-quarter-financial-results-302223390.html
SOURCE Eltek Ltd.
