Eltek Reports Net Profit in the Second Quarter of 2015

-- Net Profit of $424,000

-- Gross Margin Increased to 18.3% from 13.9%

Aug 12, 2015, 03:15 ET from Eltek Ltd.

PETACH-TIKVA, Israel, Aug. 12, 2015 /PRNewswire/ -- Eltek Ltd. (NASDAQ: ELTK), the leading Israeli manufacturer of advanced circuitry solutions, including complex build-ups of rigid and flex-rigid printed circuit boards, announced today its financial results for the quarter ended June 30, 2015.

Revenues for the quarter ended June 30, 2015 were $10.4 million compared to revenues of $12 million in the second quarter of 2014.

Gross profit for the second quarter of 2015 was $1.9 million (18.3% of revenues) compared to gross profit of $1.7 million (13.9% of revenues) in the second quarter of 2014.

Operating profit for the second quarter of 2015 was $543,000 compared to an operating loss of $65,000 in the second quarter of 2014.

Net profit for the second quarter of 2015 was $424,000 or $0.04 per share, compared to a net loss of $125,000 or ($0.01) per share, in the second quarter of 2014.

First six months of 2015:

Revenues for the first six months of 2015 were $ 20.1 million compared to revenues of $24.3 million in the first six months of 2014. 

Gross profit for the first six months of 2015 was $3.1 million (15.6% of revenues) compared to gross profit of $3.2 million (13.1% of revenues) in the first six months of 2014.

Operating profit for the first six months of 2015 was $435,000 compared to an operating loss of $186,000 in the first six months of 2014.

Net profit for the first six months of 2015 was $190,000 or $0.02 per fully diluted share, compared to a net loss of $312,000, or ($0.03) per fully diluted share, in the first six months of 2014.

EBITDA: In the quarter ended June 30, 2015, Eltek had EBITDA of $1.0 million compared to EBITDA of $480,000 in the second quarter of 2014.

In the first six months of 2015, Eltek had EBITDA of $1.4 million compared to EBITDA of $834,000 in the first six months of 2014.

Mr. Yitzhak Nissan, Chairman of the Board and Chief Executive Officer, commented: "Our revenues in the second quarter increased by $650,000 (6.7%) from the first quarter of 2015. This increase of revenues combined with the efficiency measures that we have implemented, enabled us to report a net profit of 4.1% of total sales, despite the decline in our revenues, as compared to the second quarter of last year.

"Our local market is improving, and demand from the US and Canadian markets is growing as well. We are concentrating on delivering high technology boards as expected by our customers. I believe that the ongoing combined efforts of our outstanding employees and management will open up a new horizon for Eltek," Mr. Nissan concluded.

About Eltek Eltek is Israel's leading manufacturer of printed circuit boards, the core circuitry of most electronic devices. It specializes in the complex high-end of PCB manufacturing, i.e., HDI, multilayered and flex-rigid boards. Eltek's technologically advanced circuitry solutions are used in today's increasingly sophisticated and compact electronic products. For more information, visit Eltek's web site at www.nisteceltek.com.

Use of EBITDA ELTEK uses EBITDA as a non-GAAP financial performance measurement. EBITDA is calculated by adding back to net income interest, taxes, depreciation and amortization. EBITDA is provided to investors to complement results provided in accordance with GAAP, as management believes the measure helps illustrate underlying operating trends in the Company's business and uses the measure to establish internal budgets and goals, manage the business and evaluate performance. EBITDA should not be considered in isolation or as a substitute for comparable measures calculated and presented in accordance with GAAP. Reconciliation between the company's results on a GAAP and non-GAAP basis is provided in a table immediately following the Consolidated Statement of Operations.

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

 

 

Eltek Ltd.

Consolidated Statements of Operations

(In thousands US$, except per share data)

Three months ended

Six months ended

June  30,

June  30,

2015

2014

2015

2014

Revenues

10,383

12,031

20,100

24,294

Costs of revenues

(8,481)

(10,355)

(16,972)

(21,107)

Gross profit

1,902

1,676

3,128

3,187

Selling, general and administrative expenses

(1,286)

(1,742)

(2,585)

(3,373)

R&D Expenses

(73)

0

(108)

0

Operating profit (loss)

543

(65)

435

(186)

Financial income (expenses), net

(87)

(117)

(205)

(185)

Profit (loss) before other income, net

456

(182)

230

(372)

Other income, net

3

22

5

22

Profit (loss) before income tax expenses

459

(161)

235

(350)

Income tax (expenses), net

(17)

(23)

(31)

(41)

Net Profit (loss)

442

(184)

204

(391)

Net profit (loss) attributable to non controlling interest

18

(58)

14

(79)

Net Profit (loss) attributable to Eltek Ltd.

424

(125)

190

(312)

Earnings per share

Basic and diluted net gain (loss) per ordinary share

0.04

(0.01)

0.02

(0.03)

Weighted average number of ordinary shares 

used to compute basic and diluted net gain (loss) per

ordinary share (in thousands)

10,143

10,143

10,143

10,143

 

 

Eltek Ltd.

Consolidated Balance Sheets

(In thousands US$)

June  30,

2015

2014

Assets

Current assets

Cash and cash equivalents

994

1,237

Receivables:   Trade, net of provision for doubtful accounts

8,185

8,773

                     Other

504

408

Inventories 

5,278

5,635

Prepaid expenses 

274

243

Total current assets

15,235

16,296

Deferred taxes

1,089

2,891

Assets held for employees' severance benefits

50

55

Fixed assets, less accumulated depreciation

9,971

10,326

Intangible asset

215

0

Goodwill

0

72

Total assets

26,560

29,640

Liabilities and Shareholder's equity

Current liabilities

Short-term credit and current maturities of long-term debts

2,302

2,012

Accounts payable: Trade

6,629

7,319

                            Other

4,733

5,742

Total current liabilities

13,664

15,073

Long-term liabilities

Long term debt, excluding current maturities

2,921

1,125

Employee severance benefits

206

375

Total long-term liabilities

3,127

1,500

Equity

Ordinary shares, NIS 0.6  par value authorized 50,000,000 shares, issued and outstanding 10,142,762 in 2014 and 10,142,762 in 2015

1,985

1,985

Additional paid-in capital

17,270

17,270

Cumulative foreign currency translation adjustments

2,241

3,299

Capital reserve

695

695

Accumulated deficit

(12,359)

(10,197)

Shareholders' equity

9,832

13,052

Non controlling interest

(63)

15

Total equity

9,769

13,067

Total liabilities and shareholders' equity

26,560

29,640

 

Eltek Ltd.

Unaudited Non-GAAP EBITDA Reconciliations

(In thousands US$)

Non-GAAP EBITDA Reconciliations

Three months ended

Six months ended

June  30,

June  30,

2015

2014

2015

2014

GAAP net Income (loss)

424

(125)

190

(312)

Add back items:

Financial expenses, net 

87

117

205

185

Income tax expense (benefit) 

17

23

31

41

Depreciation and amortization

508

465

926

920

Adjusted EBITDA            

1,036

480

1,352

834

 

SOURCE Eltek Ltd.



RELATED LINKS

http://www.nisteceltek.com