Eltek Reports 2016 Second Quarter Financial Results

PETACH-TIKVA, Israel, Aug. 10, 2016 /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 second quarter ended June 30, 2016.

Mr. Yitzhak Nissan, Chairman of the Board and Chief Executive Officer, commented: "Revenues in the second quarter of 2016 amounted to $9.9 million, slightly lower (5%) than revenues in the second quarter of last year. The revenues reflect the continued competition in the Israeli market for high end products. Revenues from the North American market in the second quarter of 2016 grew by 12% as compared to the first quarter of 2016 and amounted to $2.0 million. Our focus on profitability by improving production processes and closely monitoring expenses, led us to a net profit of $213,000 in the second quarter of 2016.

"We remain focused on growth in the global markets, which we expect will continue to have a positive effect on our revenues," Mr. Nissan concluded.

Highlights of the Second Quarter of 2016

• Revenues for the second quarter of 2016 were $9.9 million compared to $10.4 million in the second quarter of 2015
• Gross profit was $1.5 million (14.8% of revenues) compared to gross profit of $1.9 million (18.3% of revenues) in the second quarter of 2015. The decrease in gross profit and gross margins reflects the decreased sales, while a significant portion of our cost of sales remained constant.
• Operating profit was $244,000 compared to operating profit of $543,000 in the second quarter of 2015.
• Net profit was $213,000 or $0.02 per fully diluted share compared to net profit of $424,000 or $0.04 per fully diluted share in the second quarter of 2015.
• EBITDA amounted to $754,000 (7.6% of revenues) compared to EBITDA of $1.0 million (10% of revenues) in the second quarter of 2015.
• Net cash used by operating activities amounted to $37,000 compared to net cash used by operating activities of $118,000 in the second quarter of 2015. The improvement is mainly attributable to a decrease in working capital requirements.
• Cash and cash equivalents as of June 30, 2016 were $894,000 compared to $994,000 as of June 30, 2015.

Highlights for the First Six Months of 2016

• Revenues for the first six months of 2016 were $19.7 million compared to $20.1 million in the first six months of 2015.
• Gross profit was $2.4 million (12.2% of revenues) compared to gross profit of $3.1 million (15.6% of revenues) in the first six months of 2015.
• Operating loss was $48,000 compared to operating profit of $435,000 in the first six months of 2015.
• Net loss was $171,000, or $0.02 per fully diluted share compared to net profit of $190,000 or $0.02 per fully diluted share in the first six months of 2015.
• EBITDA amounted to $921,000 (4.7% of revenues) compared to EBITDA of $1.4 million (6.7% of revenues) in the first six months of 2015.
• Net cash provided by operating activities amounted to $853,000 compared to net cash used by operating activities of $289,000 in the first six months of 2015. The improvement is mainly attributable to a decrease in working capital requirements.

Conference Call

Today, Wednesday, August 10, 2016 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, 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:

 

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, 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 are located in Israel. Eltek also operates through its subsidiaries, Eltek USA (100%) in North America and Kubatronik (79%) in Europe, and by agents and distributors in Europe, India, South Africa and South America.

For additional 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 includes some non-GAAP measures, such as EBITDA. These non-GAAP measures are not in accordance with, nor are they a substitute for, GAAP measures. The 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 EBITDA to evaluate and manage its internal operations and 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, 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:Nir ZalikKM Investor relationsTel: +972- 3-5167620[email protected]   www.km-ir.co.il  

Amnon ShemerChief Financial Officer[email protected]   +972-3-9395023

 

 

 

 

 

 

 

 

 

 

To view the original version on PR Newswire, visit:http://www.prnewswire.com/news-releases/eltek-reports-2016-second-quarter-financial-results-300311690.html

SOURCE Eltek Ltd.