Eltek Reports Fourth Quarter and Full Year 2017 Financial Results

PETACH-TIKVA, Israel, April 30, 2018 /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 fourth quarter and full year ended December 31, 2017.

Mr. Yitzhak Nissan, Chairman of the Board and Chief Executive Officer, commented: "Our revenues in the full year of 2017 decreased to $32.8 million from $33.2 million in 2016, excluding Kubatronik. Our revenues increased in the fourth quarter of 2017 to $9.1 million compared to revenues of $7.3 million in the fourth quarter of 2016, excluding Kubatronik. We continue the implementation of the improvements we made in our manufacturing procedures, in order to supply our increased backlog of orders.

We see an increased demand for our products and our backlog of orders has grown significantly. I believe that the adjustments made to our manufacturing and marketing operations will assist the Company to reach its goals quickly and efficiently. I am determined to bring the Company back to profitability in the near future.

In March 2018, Nistec Ltd., the Company's controlling shareholder, extended the Company a bridge financing of NIS 4 million (approximately $1.1 million) for working capital. In addition, in April 2018, Nistec provided the Company a letter of commitment to provide additional financing in the amount of up to $2.5 million, valid for one year following the date of the approval of its 2017 financial statements. These supports, along with the financial support provided by Nistec in 2017, reflect my confidence in the Company and my belief that Eltek has the potential to overcome the manufacturing challenges and return to profitability.  

The results for the fourth quarter and the full year ended December 31, 2017, do not include the operations of Kubatronik Leiterplatten GmbH, which were included in Eltek's results for the comparable periods in 2016. Therefore, we have provided selected financial information on a proforma basis, excluding Kubatronik's results for 2016," Mr. Nissan concluded.  

Highlights of the Full Year of 2017 compared to the Full Year of 2016

• Revenues for the full year of 2017 amounted to $32.8 million compared to revenues of $37.1 million in 2016 ($33.2 million excluding Kubatronik).
• Gross profit was $1.3 million (4.1% of revenues), compared to gross profit of $2.8 million (7.6% of revenues) in 2016, ($2.8 million or 8.3% of revenues excluding Kubatronik).
• Operating loss was $3.4 million compared to an operating loss of $2 million in 2016, ($1.6 million excluding Kubatronik).
• Net loss was $3.8 million or $1.86 per fully diluted share, compared to a net loss of $3.6 million or $1.79 per fully diluted share in 2016 (a net loss of $3.2 million or $1.6 per fully diluted share excluding Kubatronik).
• EBITDA was a negative $1.3 million compared to a negative $313,000 in the 2016 (a negative $124,000 excluding Kubatronik).
• Net cash used in operating activities amounted to $3.4 million compared to $165,000 provided by operating activities in 2016.
• Cash and cash equivalents as of December 31, 2017 were $887,000, compared to $1.2 million as of December 31, 2016.

Highlights of the Fourth Quarter of 2017 compared to the Fourth Quarter of 2016

• Revenues for the fourth quarter of 2017 were $9.1 million compared to revenues of $8.1 million in the fourth quarter of 2016 ($7.3 million excluding Kubatronik).
• Gross profit was $740,000 (8.1% of revenues) compared to a gross loss of $463,000 (5.7% of revenues) in the fourth quarter of 2016 (gross loss of $283,000 or 3.9% of revenues excluding Kubatronik).
• Operating loss was $568,000 compared to an operating loss of $1.6 million in the fourth quarter of 2016 (an operating loss of $1.4 million excluding Kubatronik).
• Net loss was $669,000 or $0.33 per fully diluted share compared to a net loss of $3 million or $1.48 per fully diluted share in the fourth quarter of 2016 (a net loss of $2.8 million or $1.4 per fully diluted share excluding Kubatronik).
• EBITDA was a negative $130,000 compared to a negative $1.4 million in the fourth quarter of 2016 (a negative $1.2 million excluding Kubatronik).
• Net cash used in operating activities amounted to $775,000 compared to $1.3 million of cash used in operating activities in the fourth quarter of 2016.

Conference Call:

Today, Monday, April 30, 2018, at 9:30 a.m. Eastern Time, Eltek will conduct a conference call to discuss the results. The call will feature remarks by Mr. Yitzhak Nissan, Chairman of the Board of Directors and Chief Executive Officer, Mr. Roberto Tulman, Deputy CEO and Chief Technology Officer, and Mr. Amnon Shemer, Chief Financial Officer.

To participate, please call the following teleconference numbers. Please allow for additional time to connect prior to the call:

United States: 1-888-407-2553
Israel: 03-9180664
International: +972-3-9180664

At:
9:30 a.m. Eastern Time
6:30 a.m. Pacific Time
16:30 p.m. Israel Time

A replay of the call will be available through the Investor Info section on Eltek's corporate website at www.nisteceltek.com approximately 24 hours after the conference call is completed and will be archived for 30 days.

(Tables follow)

About Eltek

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 has ITAR, AS-9100 and NADCAP Electronics permits and its customers include top of the line 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, and R&D, production and marketing center is located in Israel. Eltek operates also through its subsidiaries in North America and Europe, and by agents and distributors in Europe, India, South Africa and South America.

For more information, visit Eltek's web site at www.nisteceltek.com.

Use of Non-GAAP Financial Information

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.

Safe Harbor for Forward Looking Statements:

This press release contains express or implied forward-looking statements within the Private Securities Litigation Reform Act of 1995 and other U.S Federal securities laws, 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 in subsequent filings with the United States Securities and Exchange Commission. Except as otherwise required by law, Eltek is under no obligation to (and expressly disclaims any such obligation to) update or alter its forward-looking statements whether as a result of new information, future events or otherwise.

Investor Contact: 
Amnon Shemer
Chief Financial Officer
[email protected] 
+972-3-9395023

SOURCE Eltek Ltd.