PETACH-TIKVA, Israel, Nov. 18, 2020 /PRNewswire/ -- Eltek Ltd. (NASDAQ: ELTK), a global manufacturer and supplier of technologically advanced solutions in the field of printed circuit boards, announced today its financial results for the quarter ended September 30, 2020.
Mr. Eli Yaffe, Chief Executive Officer, commented: "We are pleased that our third quarter results reflect the continuing trend of improved results. We are gratified that despite the global Covid-19 pandemic and its related challenges, we were able to achieve continued profitability and improve our operating profit from $1.0 million in the first nine months of 2019 to $2.1 million in the first nine months of 2020."
"We are operating in a challenging business environment and making the necessary adjustments to increase revenues, maintain the trend of improved operating efficiencies and reach sustained profitability," concluded Mr. Yaffe.
Highlights of the Third Quarter of 2020 compared to the Third Quarter of 2019
Revenuesfor the third quarter of 2020 were $9.3 million consistent with our revenues in the third quarter of 2019;
Gross profitincreased from $1.75 million (18.9% of revenues) in the third quarter of 2019 to $1.82 million (19.7% of revenues) in the third quarter of 2020;
Operating profitincreased to $638,000 during the third quarter of 2020 as compared to operating profit of $568,000 in the third quarter of 2019;
Net profitwas $598,000, or $0.14 per fully diluted share in the third quarter of 2020 compared to net profit of $391,000, or $0.09 per fully diluted share, in the third quarter of 2019;
EBITDAwas $1.0 million in the third quarter of 2020 compared to EBITDA of $940,000 in the third quarter of 2019;
Net cash provided by operating activitiesamounted to $873,000 in the third quarter of 2020 compared to net cash provided by operating activities of $1.4 million in the third quarter of 2019.
Highlights for the First Nine Months of 2020
Revenuesfor the first nine months of 2020 were $27.2 million compared to $26.2 million in the first nine months of 2019;
Gross profitwas $5.5 million (20.3% of revenues) compared to gross profit of $4.5 million (17.4% of revenues) in the first nine months of 2019;
Operating profitwas $2.1 million in the first nine months of 2020 compared to operating profit of $1.0 million in the first nine months of 2019;
Other expenseswere $10,000 in the first nine months of 2020 as compared to other income of $875,000 in the first nine months of 2019 which was attributable to an insurance payment related to a claim for damages incurred during 2018;
Net profitwas $1.8 million, or $0.42 per fully diluted share in the first nine months of 2020 compared to net profit of $1.4 million, or $0.40 per fully diluted share in the first nine months of 2019;
EBITDAwas $3.2 million in the first nine months of 2020 compared to EBITDA of $3.0 million in the first nine months of 2019;
Net cash provided by operating activitiesamounted to $3.7 million in the first nine months of 2020 compared to net cash provided by operating activities of $2.7 million in the first nine months of 2019.
Today, Wednesday, November 18, 2020, at 8:30 a.m. Eastern Time, Eltek will conduct a conference call to discuss the results. The call will feature remarks by Eli Yaffe, Chief Executive Officer and Alon Mualem, Chief Financial Officer.
To participate, please call the following teleconference numbers. Please allow for additional time to connect prior to the call:
8:30 a.m. Eastern Time
5:30 a.m. Pacific Time
15:30 p.m. Israel Time
A replay of the call will be available through the Investor Info section on Eltek's corporate website athttp://www.nisteceltek.comapproximately 24 hours after the conference call is completed and will be archived for 30 days.
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 the Israeli leader 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 subsidiaries in North America and in Europe and by agents and distributors in Europe, India, South Africa and South America.
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 a table below.
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, 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.