Eltek Reports Record Revenues for Second Quarter of 2013 -- $12.4 Million in Revenues

-- Net Income of $339,000

PETACH-TIKVA, Israel, Aug. 29, 2013 /PRNewswire/ -- (NASDAQ: ELTK) - Eltek Ltd., the leading Israeli manufacturer of advanced flex-rigid circuitry solutions, announced today its results for the second quarter of 2013.

Revenues for the quarter ended June 30, 2013 were $12.4 million, compared to revenues of $11.5 million in the second quarter of 2012. 

Gross Profit for the second quarter of 2013 was $2.1 million (17% of revenues), compared to gross profit of $1.9 million (17% of revenues) in the second quarter of 2012.

Operating Profit for the second quarter of 2013 was $491,000 compared to the operating profit of $465,000 in the second quarter of 2012.

Net Profit for second quarter of 2013 was $339,000 or $0.05 per fully diluted share, compared to net profit of $351,000 or $0.05 per fully diluted share in the second quarter of 2012.

First six months of 2013:

Revenues for the first six months of 2013 were $24.8 million compared to revenues of $23.5 million recorded in the first six months of 2012. 

Gross profit for the first six months of 2013 was $3.9 million (16% of revenues) compared to gross profit of $4.2 million (18% of revenues) in the first six months of 2012.

Operating profit for the first six months of 2013 was $721,000 compared to operating profit of $1.2 million in the first six months of 2012.

Net profit for the first six months of 2013 was $465,000 or $0.07 per fully diluted share, compared to net profit of $877,000, or $0.13 per fully diluted share, in the first six months of 2012.

EBITDA:

In the quarter ended June 30, 2013, Eltek had EBITDA of $932,000 compared to EBITDA of $928,000 in the second quarter of 2012.

In the first six months of 2013, Eltek had EBITDA of $1.5 million compared to EBITDA of $2.1 million in the first six months of 2012.

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

Management Comments:

Arieh Reichart, President and Chief Executive Officer of Eltek commented: "For three consecutive quarters Eltek has seen growing demand from its current customer base, but production capacity constraints prevented the full exploitation of this potential. Our customers continue to see the value proposition of our products and have a great deal of trust in our company. Specifically, in our local market, we have seen greater interest from our local customers, reflecting the continued market recognition of our high quality and reliable products."

"We are pleased with Nistec's decision to invest in Eltek. This significant investment is an important validation of our vision and achievements and will support our long-term growth plans. This investment will enable Eltek to fully realize its growth potential as well as other opportunities in the diverse markets we serve," Mr. Reichart concluded.

Amnon Shemer, Chief Financial Officer of Eltek added: "The record revenues in this quarter and the ten consecutive quarters of profitability, demonstrate Eltek's potential for growth and profitability, which we could not fully capitalize on due to the lack of capital expenditures. We believe that Nistec's capital investment in the Company will enable us to invest in sophisticated manufacturing equipment, which is expected to assist us in growing the business of manufacturing high-end products and improve production efficiency. We believe that such investments will not only increase revenues but also improve gross margins and net income."

"In addition, the capital infusion into the Company will improve our cash position and strengthen our balance sheet through increasing shareholders' equity," Mr. Shemer concluded.

About the 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.eltekglobal.com.

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.

Contact:
Amnon Shemer
Chief Financial Officer
amnons@eltek.co.il 
+972-3-9395050

Eltek Ltd.

Consolidated Statements of Operations

(In thousands US$, except per share data)













Three months ended


Six months ended




June  30,


June  30,




2013


2012


2013


2012




Unaudited


Unaudited












Revenues


12,350


11,533


24,803


23,512


Costs of revenues


(10,256)


(9,620)


(20,920)


(19,277)












Gross profit


2,094


1,914


3,882


4,235












Selling, general and administrative expenses


(1,603)


(1,449)


(3,161)


(3,054)












Operating profit (loss)


491


465


721


1,181












Financial income (expenses), net


(144)


(98)


(244)


(266)












Profit (loss) before other income, net


347


367


477


916












Other income, net


(7)


0


(10)


0












Profit (loss) before income tax expenses


340


367


466


916












Income tax (expenses), net


(9)


(21)


(18)


(25)












Net Profit (loss)


331


346


448


890












Net profit (loss) attributable to non controlling interest


(8)


(4)


(17)


14












Net Profit (loss) attributable to controlling interest / Eltek

339


351


465


877












Earnings per share




















Basic and diluted net gain (loss) per ordinary share


0.05


0.05


0.07


0.13












Weighted average number of ordinary shares 










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










ordinary share (in thousands)


6,610


6,610


6,610


6,610


 

Eltek Ltd.

Consolidated Balance Sheets

(In thousands US$)

















June  30,








2013


2012








Unaudited


Assets




















Current assets










Cash and cash equivalents






829


1,621


Receivables:   Trade, net of provision for doubtful accounts






9,583


7,755


                     Other






325


321


Inventories 






5,647


4,540


Prepaid expenses 






262


240












Total current assets






16,646


14,477












Assets held for employees' severance benefits






49


43












Fixed assets, less accumulated depreciation






9,585


7,769












Goodwill






74


497












Total assets






26,354


22,786










































Liabilities and Shareholder's equity




















Current liabilities










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






4,813


5,036


Accounts payable: Trade






7,158


6,335


                            Related parties






1,523


1,219


                            Other






4,967


4,087












Total current liabilities






18,461


16,677












Long-term liabilities










Long term debt, excluding current maturities






1,563


503


Employee severance benefits






193


145












Total long-term liabilities






1,756


648












Equity










Ordinary shares, NIS 0.6  par value authorized 50,000,000

shares, issued and outstanding 6,610,107 






1,384


1,384


Additional paid-in capital






14,328


14,295


Cumulative foreign currency translation adjustments






2,997


2,484


Capital reserve






695


695


Accumulated deficit






(13,370)


(13,521)


Shareholders' equity






6,034


5,337


Non controlling interest






103


124


Total equity






6,137


5,461


Total liabilities and shareholders' equity






26,354


22,786


 

Eltek Ltd.

Unaudited Non-GAAP EBITDA Reconciliations

For the period ended June 30, 2013

(In thousands US$, except per share data)











Non-GAAP EBITDA Reconciliations


Three months ended


Six months ended




June  30,


June  30,




2013


2012


2013


2012




Unaudited


Unaudited












GAAP net Income (loss)


339


351


465


877


Add back items:




















Financial (income) expenses, net 


143


98


244


266


Income tax (benefit) expense


9


21


18


25


Depreciation


441


459


818


935


Adjusted EBITDA            


932


928


1,546


2,102


 

SOURCE Eltek Ltd.



RELATED LINKS
http://www.eltekglobal.com

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