Eltek Announces Preliminary Second Quarter Results
Receives Letter of Intent for $1.2 Million Order From Major European Customer
PETACH-TIKVA, Israel, June 26 /PRNewswire/ -- Eltek Ltd. (Nasdaq: ELTK), the leading Israeli manufacturer of advanced circuitry solutions, today announced that it expects revenues for the quarter ended June 30, 2001 to be between $6.3 million and $6.5 million, a decrease of 4% to 8% compared with the same quarter last year. The company attributed the decrease in revenues to the continued slowdown in technology spending, particularly among telecommunications and data communications companies. Additionally, the Company announced that it has received a letter of intent from one of its major European customers for the additional purchase of approximately $1.2 million of Eltek's PCB products. The boards have begun shipping, and will continue through the fourth quarter of 2001. Arieh Reichart, President and CEO of Eltek commented, "The ongoing economic downturn has modestly impacted our financial performance during the second quarter. We continue to see demand for our products, particularly for our higher end boards, as witnessed by our continued new order flow. These new orders however, are mainly for prototypes. To this point we have seen a decrease in the demand of ongoing orders for pre-production stage products, likely as a result of an inventory backlog on the customer end. We continue to hear positive feedback from customers about Eltek's capabilities and technology behind our products on a regular basis, and are confident in our ability to work through this economic slowdown." Mr. Reichart Continued, "We are working diligently to improve efficiency through all facets of our business. Additionally, we recently completed our investment of approximately $6 million in equipment and infrastructure to support the development of HDI technology. We believe that this investment, coupled with increasing interest in Eltek's products from our Israeli and European customers have positioned us for long-term success, and that we will be able to fully capitalize on opportunities once this slowdown has subsided." About Eltek Eltek is one of Israel's leading manufacturers of printed circuit boards, the core circuitry of most electronic devices. It specializes in the complex high-end of PCB manufacturing, i.e., HDI, multi-layered and flex-rigid boards. Eltek's technologically advanced circuitry solutions are used in today's increasingly sophisticated and compact electronic products. The Company has invested heavily in upgrading its production facilities over the past five years. 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 United States Securities and Exchange Commission filings. This release and prior releases are available on the KCSA Public Relations Worldwide Web site at http://www.kcsa.com.
SOURCE Eltek Ltd.
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