Eltek Ltd. Reports First Quarter Results
Net Loss Reduced by 32% From Last Quarter
PETACH-TIKVA, Israel, May 29 /PRNewswire-FirstCall/ -- Eltek Ltd. (Nasdaq: ELTK), the leading Israeli manufacturer of advanced circuitry solutions, today announced results for the first quarter ended March 31, 2002. Eltek reported revenues for the three months ended March 31, 2002 of NIS 26.9 million ($5.8 million), compared with NIS 28.8 million ($6.2 million) during the fourth quarter of 2001. Net loss for the quarter totaled NIS 1.1 million ($240,000) or NIS 0.23 per diluted share ($0.05), compared with net loss of NIS 1.6 million ($352,000), or NIS 0.34 per diluted share ($0.07) for the fourth quarter of 2001 and net income of NIS 4.8 million ($1.0 million), or NIS 0.98 per diluted share ($0.21) for the quarter ended March 31, 2001. Gross profit for the quarter was NIS 2.3 million ($486,000), compared with NIS 2.4 million ($525,000) during the fourth quarter and NIS 9.2 million ($2.0 million) during the first quarter of 2001. Operating loss for the quarter was NIS 966,000 ($207,000) compared with NIS 995,000 ($213,000) reported for the fourth quarter, and operating income of NIS 5.3 million ($1.1 million) reported for the comparable quarter in 2001. The Company noted that all dollar amounts mentioned reflect the value of the New Israeli Shekel as of March 31, 2002. Any differences in historical results between those originally reported and those reported presently are a result of fluctuation in the value of the New Israeli Shekel. In announcing the results, Arieh Reichart, President and Chief Executive Officer of Eltek said, "While we saw a 7% decrease in sequential revenues, we managed to reduce our operating expenses by approximately 8%, further evidence that the cost control measures we implemented during the fourth quarter have proven effective. In addition, our net loss was reduced by approximately 32% compared with last quarter." Mr. Reichart continued, "In February, the Company announced that it had signed a memorandum of understanding to acquire a majority interest in a privately held German manufacturer of high-end PCBs. We had initially anticipated that the deal would be closed by now, but we have encountered several delays which were beyond our control. We continue to make progress toward closing the acquisition, and expect to announce the completion of the deal shortly. Despite these delays, our objective remains to expand Eltek's presence beyond the markets we currently serve. In addition to the acquisition, we are exploring several opportunities that could help to further our efforts toward geographic expansion. We will update our shareholders as material events transpire." TELECONFERENCE: Eltek will hold a teleconference at 10:00 a.m. EDT on Wednesday, May 29 for interested investors, analysts, and stockbrokers. To take part in the Teleconference dial 888-335-6716 in the U.S. and 973-633-1010 internationally. Participants are asked to begin placing their calls about 5 to 10 minutes prior to the scheduled start time. For those unable to participate, a replay will be available from 12:00 p.m.-EDT, on May 29, 2002 through 11:59 p.m. EDT on May 31, 2002. To access the replay, please dial: Dial: 877-519-4471 (Domestic) Dial: 973-341-3080 (International) Access Code: 3278644 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. You may register to receive Eltek's future press releases or to download a complete Digital Investor Kit(TM) including press releases, regulatory filings and corporate materials by clicking on the "Digital Investor Kit(TM)" icon at http://www.kcsa.com ELTEK LTD. Consolidated Statements of Operations Adjusted to New Israeli Shekels as of March 2002 (In thousands, except per share data) Three months Three months Three months ended March ended March ended March 31, 2001 31, 2002 31, 2002 NIS NIS U.S. $ (Unaudited) (Unaudited) (Unaudited) Revenues 36,425 26,924 5,769 Costs of revenues 27,197* 24,654 5,283 Gross profit 9,228 2,270 486 Research and development costs, net 164* 0 0 Selling, general and administrative expenses 3,781 3,236 693 Operating income (loss) 5,283 (966) (207) Financial expenses, net 475 164 35 Other incomes, net 0 8 2 Income (loss) before taxes on income 4,808 (1,122) (240) Taxes on income -- -- -- Net income (loss) for the period 4,808 (1,122) (240) Basic and diluted earnings (loss) per share 0.98 (0.23) (0.05) Weighted average number of ordinary shares used to compute basic and diluted earnings (loss) per ordinary share 4,967 4,886 4,886 *=Reclassified Eltek Ltd. Consolidated Condensed Balance Sheets Adjusted to New Israeli Shekels as of March 2002 Convenience December 31, translation 2001 March 31, 2002 March 31, 2002 Unaudited Unaudited Unaudited NIS NIS U.S. $ (in thousands) Assets Current assets Cash and cash equivalents 6,438 7,891 1,690 Receivables: Trade 27,869 24,316 5,209 Other 1,590 898 192 Inventories 14,229 13,088 2,804 Prepaid expenses 984 656 141 Total current assets 51,110 46,849 10,036 Other investments -- 7 1 Property and equipment, net 53,292 51,851 11,108 Total assets 104,402 98,707 21,145 Liabilities and Shareholder's Equity Current liabilities Short term credit and current installments of long-term debts 17,143 15,745 3,373 Trade payables 18,863 17,531 3,756 Other liabilities and accrued expenses 7,550 7,232 1,549 Total current liabilities 43,556 40,508 8,678 Long- term liabilities Long term debt, excluding current portion 14,873 13,269 2,842 Employee severance benefits 817 896 192 Total liabilities 59,246 54,673 11,712 Shareholders' equity Ordinary shares, NIS 0.6 par value. Authorized 50,000,000 shares, issued and outstanding 4,885,651 28,737 28,737 6,156 Additional paid in capital 50,927 50,927 10,910 Capital reserves related to loans from controlling shareholders 9,806 9,806 2,101 Capital reserve 6,549 6,549 1,403 Accumulated deficit (50,863) (51,985) (11,137) Total shareholders' equity 45,156 44,034 9,433 Total liabilities and shareholders' equity 104,402 98,707 21,145 MAKE YOUR OPINION COUNT - Click Here http://tbutton.prnewswire.com/prn/11690X85273577
SOURCE Eltek Ltd.
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