Le Lézard
Classified in: Science and technology, Business
Subjects: ERN, CCA

Eltek Reports 2019 Third Quarter Financial Results


PETACH-TIKVA, Israel, Nov. 20, 2019 /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, 2019.

(PRNewsfoto/Eltek)

Mr. Eli Yaffe, Chief Executive Officer, commented: "We are pleased with our growth in revenues and profitability in the third quarter's results. The improved results are a consequence of the implementation of our previously announced turnaround plan."

Highlights of the Third Quarter of 2019 compared to the Third Quarter of 2018

Highlights for the First Nine Months of 2019

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.

Conference Call

Today, Wednesday, November 20, 2019, 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:

United States:  1-888-668-9141
Israel: 03-9180609
International: +972-3-9180609

At:
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 at http://www.nisteceltek.com approximately 24 hours after the conference call is completed and will be archived for 30 days.

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 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.

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

Investor Contact:

Alon Mualem
Chief Financial Officer
alonm@nisteceltek.com
+972-3-9395023

 

 

Eltek Ltd.

Consolidated Statements of Operations

(In thousands US$, except per share data)











Three months ended


Nine months ended



September  30,


September  30,



2019

2018


2019


2018






Revenues

9,279

8,503


26,213


26,112

Costs of revenues

(7,524)

(7,530)


(21,663)


(24,118)

Gross profit

1,755

973


4,550


1,994









Selling, general and administrative expenses

(1,187)

(1,280)


(3,541)


(3,648)

R&D expenses, net

-

-


-


(1)

Operating profit (loss)

568

(307)


1,009


(1,655)

Financial expenses, net

(146)

(132)


(409)


(264)

Other income, net

(2)

-


875


-

Profit (loss) before income tax 

420

(439)


1,475


(1,919)

Tax expenses

(29)

(24)


(51)


(57)

Net Profit (loss)

391

(463)


1,424


(1,976)









Earnings per share







Basic and diluted net profit (loss) per ordinary share

0.09

(0.23)


0.40


(0.97)









Weighted average number of ordinary shares used




to compute basic and diluted net profit (loss) per




ordinary share (in thousands)

4,380

2,029


3,519


2,029

 

 

Eltek Ltd.

Consolidated Balance Sheets

(In thousands US$)




September  30,

December 31,



2019

2018




Assets








Current assets




Cash and cash equivalents


2,289

992

Receivables:   Trade, net of provision for doubtful accounts


6,852

5,682

                     Other


195

868

Inventories 


3,785

3,611

Prepaid expenses 


412

292

Total current assets


13,533

11,445





Long term assets




Severance pay fund


59

53

Long term prepaid expenses


-

39

Operating lease right of use assets


2,750

-

Total long term assets


2,809

92

Fixed assets, less accumulated depreciation


6,795

6,623

Total Assets


23,137

18,160





Liabilities and Shareholder's equity








Current liabilities




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


2,123

6,606

Short-term credit from related party


3,446

2,668

Accounts payable: Trade


4,755

4,108

                            Other


3,579

3,377

Short-term operating lease liabilities


1,368

-

Total current liabilities


15,271

16,759





Long-term liabilities




Long term debt, excluding current maturities


436

308

Employee severance benefits


244

211

Long-term operating lease liabilities


1,362

-

Total long-term liabilities


2,042

519





Equity




Ordinary shares, NIS 3.0  par value authorized 10,000,000
shares, issued and outstanding 2,028,552 


3,964

1,985

Additional paid-in capital


18,583

17,270

Cumulative foreign currency translation adjustments


2,435

2,340

Capital reserve


932

800

Accumulated deficit


(20,090)

(21,513)

Shareholders' equity


5,824

882

Total liabilities and shareholders' equity


23,137

18,160

 

 

Eltek Ltd.

Unaudited Non-GAAP EBITDA Reconciliations

(In thousands US$)









Non-GAAP EBITDA Reconciliations


Three months ended


Nine months ended



September  30,


September  30,



2019

2018


2019


2018



Unaudited


Unaudited














GAAP net Income (loss)


391

(463)


1,424


(1,976)

Add back items:
















Financial expenses, net 


146

132


409


264

Income tax expense 


29

24


51


57

Depreciation and amortization


374

416


1,118


1,282

Non-GAAP EBITDA


940

109


3,002


(373)

 

 

Eltek Ltd.

Consolidated Statement of  Cash flow

(In thousands US$)











Three months ended


Nine months ended



September  30,


September  30,



2019

2018


2019


2018









Cash flows from operating activities:
















Net Income (loss)


391

(463)


1,423


(1,976)









Adjustments to reconcile net loss to net








cash flows provided by operating activities:








Depreciation and amortization


371

416


1,119


1,282

Stock-based compensation


26

-


88


-

Transaction with controlling shareholder


15

-


44


-

Revaluation of long term loans 


(12)

(1)


(36)


23



400

415


1,215


1,305









Changes in operating leases, net


(1)

-


(11)


-

Decrease (increase) in trade receivables


886

1,016


(712)


(474)

Decrease  in other receivables and prepaid expenses


(224)

(538)


655


313

Decrease (increase) in inventories


211

253


98


(661)

Increase (decrease)  in trade payables


(102)

(440)


92


645

Increase (decrease) in other liabilities and accrued expenses


(188)

(84)


(55)


(134)

Increase (decrease) in employee severance benefits, net


23

5


14


32



605

212


81


(279)









Net cash provided by (used in) operating activities


1,396

164


2,719


(950)

















Cash flows from investing activities:








Purchase of fixed assets


(293)

(86)


(543)


(196)

Net cash used in investing activities


(293)

(86)


(543)


(196)









Cash flows from financing activities:








Short- term bank credit, net


(921)

113


(4,315)


956

Short- term shareholder loan


-

275


557


1,431

Issuance of ordinary shares in rights offering, net


-

-


3,298


-

Repayment of long-term loans from bank


(220)

(225)


(675)


(689)

Proceeds from long-term loans


557

-


558


-

Repayment of credit from fixed asset payables


(94)

(74)


(289)


(233)

Net cash provided by (used in) financing activities


(678)

89


(866)


1,465









Effect of translation adjustments


27

43


(13)


(5)









Net increase (decrease) in cash and cash equivalents


452

210


1,297


314









Cash and cash equivalents at beginning of the period


1,837

991


992


887









Cash and cash equivalents at period end


2,289

1,201


2,289


1,201

 

 

 

SOURCE Eltek Ltd.


These press releases may also interest you

at 09:25
Ceridian , a global leader in human capital management (HCM), today announced that it has hired HCM industry veteran Joe Korngiebel as Executive Vice-President, Chief Product and Technology Officer. Reporting to Leagh Turner, Ceridian's President...

at 09:23
RingLogix announced today that TMC, a global, integrated media company, has awarded their White Label PBX & UCaaS Platform a 2020 Communications Solutions Products of the Year Award. "We're very excited to see how the channel is responding to our...

at 09:22
The edge artificial intelligence (AI) chipset market is expected to exceed the cloud AI chipset market for the first time in 2025, propelled by the increasing focus on low latency, data privacy, and the availability of low-cost and...

at 09:20
NEXON Co., Ltd. ("Nexon") (3659.TO), a global leader in online games, today announced the financial results for its second quarter ended June 30, 2020. "Nexon is performing exceptionally well," said Owen Mahoney, president and CEO of Nexon. "Our...

at 09:20
Mr. Adkins Zheng, Chairman and Chief Algorithm Officer of TCSA, shared a comprehensive overview of his company's mission, values and grand vision during a recent documentary with Phoenix TV....

at 09:17
VirBELA, an immersive technology platform that's redefining the future of business, events and education, today announced exponential growth and momentum in the second quarter of 2020. Backed by a billion-dollar public parent company, eXp World...



News published on 20 november 2019 at 07:30 and distributed by: