Eltek Reports 2012 First Quarter Results

Eltek Ltd. (NASDAQ: ELTK), leading Israeli manufacturer of advanced flex-rigid circuitry solutions, announced today its financial results for the first quarter of 2012.

Revenues for the first quarter of 2012 were $12.0 million, compared to revenues of $11.8 million recorded in the first quarter of 2011 and revenues of $11.5 million in the fourth quarter of 2011.

Gross Profit for the first quarter of 2012 was $2.3 million (19% of revenues), compared with gross profit of $2.5 million (21% of revenues) in the first quarter of 2011 and gross profit of $1.8 million (15% of revenues) in the fourth quarter of 2011.

Operating Profit for the first quarter of 2012 was $716,000 compared with an operating profit of $877,000 in the first quarter of 2011 and operating profit of $312,000 in the fourth quarter of 2011.

Net Profit for the first quarter of 2011 was $526,000, or $0.08 per share, compared with a net profit of $788,000 or ($0.12) per share in the first quarter of 2011 and net profit of $228,000 or ($0.03) per share in the fourth quarter of 2011.


In the first quarter of 2012, Eltek had EBITDA of $1.2 million compared with EBITDA of $1.4 million in the first quarter of 2011 and EBITDA of $868,000 in the fourth quarter of 2011.

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: "I'm pleased to report that despite the economic condition in Europe and the US, we were able to achieve record revenues of $12.0 million this quarter. During the first quarter of 2012 we received two large frame orders of three million dollars in the aggregate from US advanced medical device manufacturers. These recent orders reflect the continued market recognition of the high quality and reliability of our products."

"In addition, we are working on expanding our sales force through strategic relationships with leading PCB manufacturers in general, and in the US in particular, which can provide us with an ideal platform to increase sales of our high-end flex-rigid boards," Mr. Reichart concluded.

Amnon Shemer, Chief Financial Officer of Eltek added: “Our ability to maintain a high level of revenues in today’s turbulent economy gives us great confidence in our operation and marketing strategy. Our net income in the first quarter enabled us to improve our cash position by $522,000. During the first quarter we invested $720,000 in fixed assets, mainly for our production lines, in order to better position the company for future growth and improved production efficiency."

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, please visit Eltek's web site: 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.
Eltek Ltd.
Consolidated Statements of Operations
(In thousands US$, except per share data)
      Three months ended     Year ended
March 31, December 31,
2012     2011 2011
Unaudited Audited
Revenues 11,978 11,839 46,830
Costs of revenues (9,657 ) (9,357 ) (38,101 )
Gross profit 2,322 2,482 8,729
Selling, general and administrative expenses (1,605 ) (1,605 ) (6,155 )
Operating profit (loss) 716 877 2,573
Financial income (expenses), net (168 ) (56 ) (739 )
Profit (loss) before other income, net 548 821 1,834
Other income, net 0   0   12  
Profit (loss) before income tax expenses 548 821 1,846
Income tax (expenses), net (5 ) (20 ) (31 )
Net Profit (loss) 544 801 1,815
Net profit (loss) attributable to non controlling interest 18   (13 ) 31  
Net Profit (loss) attributable to controlling interest / Eltek 526   788   1,846  
Earnings per share
Basic and diluted net gain (loss) per ordinary share 0.08   (0.13 ) (0.26 )


Weighted average number of ordinary sharesused to compute basic and diluted net gain (loss) perordinary share (in thousands)
6,610   6,610   6,610  
Eltek Ltd.
Consolidated Balance Sheets
(In thousands US$)
      March 31,     December 31,
2012     2011 2011
Unaudited Audited
Current assets
Cash and cash equivalents 1,414 1,742 892
Receivables: Trade, net of provision for doubtful accounts 8,565 8,195 8,885
Other 269 62 116
Inventories 5,005 5,246 4,434
Prepaid expenses 350   217   239  
Total current assets 15,603   15,462   14,566  
Assets held for employees' severance benefits 41   1,577   39  
Fixed assets, less accumulated depreciation 8,214   8,013   7,746  
Goodwill 521   565   518  
Total assets 24,379   25,617   22,869  
Liabilities and Shareholder's equity
Current liabilities
Short-term credit and current maturities of long-term debts 4,584 7,824 4,856
Accounts payable: Trade 7,214 6,812 6,456
Related parties 1,190 1,062 1,046
Other 4,118   3,993   3,995  
Total current liabilities 17,106   19,691   16,353  
Long-term liabilities
Long term debt, excluding current maturities 1,642 0 1,604
Employee severance benefits 164   1,741   150  
Total long-term liabilities 1,806   1,741   1,754  

Ordinary shares, NIS 0.6 par value authorized 50,000,000shares, issued and outstanding 6,610,107 as of December31, 2011.
1,384 1,384 1,384
Additional paid-in capital 14,295 14,328 14,328
Cumulative foreign currency translation adjustments 2,829 3,124 2,622
Capital reserve 695 695 695
Accumulated deficit (13,872 ) (15,546 ) (14,398 )
Shareholders' equity 5,331 3,985 4,631
Non controlling interest 136   200   131  
Total equity 5,467   4,185   4,762  
Total liabilities and shareholders' equity 24,379   25,617   22,869  
Eltek Ltd.
Unaudited Non-GAAP EBITDA Reconciliations
For the period ended December 31, 2011
(In thousands US$, except per share data)
Non-GAAP EBITDA Reconciliations       Three months ended     Year ended
March 31, December 31,
2012     2011 2011
GAAP net Income (loss) 526 788 1,846

Add back items:
Financial (income) expenses, net 168 56 739
Income tax (benefit) expense 5 20 31
Depreciation 476 513 2,091
Adjusted EBITDA 1,174 1,377 4,707

Copyright Business Wire 2010

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