Financial Position - As of December 31, 2024, the company had $17.2 million in cash and cash equivalents and working capital of $25.8 million[32]. - The company raised $10 million in a public offering in February 2024, which is being used to expand production capabilities and for general corporate purposes[206]. - As of December 31, 2024, the company had no outstanding bank debt and $2.4 million in unused revolving lines of credit[207][208]. - Net cash provided by operating activities was $4.5 million in 2024, down from $8.9 million in 2023, primarily due to a decrease in pre-tax income[212][213]. - Net cash used in investing activities rose significantly to $15.9 million in 2024 from $3.0 million in both 2023 and 2022, mainly for fixed asset purchases[215]. - Capital expenditures were approximately $9.5 million in 2024, compared to $2.4 million in 2023, reflecting increased investment in production equipment[218]. - The company expects to finance its 2025 operations through cash flow from operations and cash balances, although liquidity may be affected by external factors such as geopolitical tensions[219]. Revenue and Sales - Revenues decreased by 0.4% to $46.5 million in the year ended December 31, 2024, from $46.7 million in 2023, primarily due to operational challenges associated with new equipment installation[188]. - The company generated $15.8 million in sales to non-Israeli customers in 2024, accounting for 34% of total revenues, compared to $20 million (42.7%) in 2023 and $17.7 million (44.6%) in 2022[162]. - Defense and aerospace equipment accounted for 65% of the company's PCB production in 2024, up from 50.7% in 2023 and 48.7% in 2022[161]. - The backlog at December 31, 2024, was approximately $23.1 million, up from $18.1 million at December 31, 2023, with expectations to deliver most of this backlog in 2025[171]. Costs and Expenses - Cost of revenues increased by 7.7% to $36.2 million for the year ended December 31, 2024, from $33.6 million in 2023, mainly due to higher employee compensation costs[189]. - Gross profit decreased by 21% to $10.3 million for the year ended December 31, 2024, with gross profit margin dropping to 22.2% from 28.1% in 2023, attributed to increased manufacturing costs and a shift in product mix[190]. - Operating profit fell to $4.4 million in 2024 from $7.3 million in 2023, primarily due to the decrease in gross profit[191]. - Selling, general and administrative expenses were $5.8 million in 2024, slightly up from $5.7 million in 2023, maintaining a stable expense ratio[191]. - Research and development expenses were 0.4% of revenues in 2024, up from 0.2% in 2023, reflecting increased investment in innovation[186]. Market and Competition - Competition in the PCB market is intense, with significant pressure from manufacturers in Southeast Asia, which have lower production costs[40]. - The company competes with PCB manufacturers in Asia that have lower production costs, which could limit pricing power and affect financial results[88]. - Rapid changes in the electronics industry and recessionary pressures may lead to intensified price competition and reduced margins, adversely affecting financial results[65]. - The company has a strategy to focus on high-end PCB markets, particularly flex-rigid PCBs, which offer better margins[164]. Risks and Challenges - The company may require additional capital in the future, which may not be available, potentially affecting competitiveness and expansion plans[32]. - The company is dependent on unique machinery that may malfunction, affecting manufacturing activities and financial results[34]. - The company does not currently engage in hedging transactions, exposing it to risks from currency fluctuations[44]. - Political and military instability in Israel may disrupt operations and negatively affect business conditions and share price[41]. - The ongoing Israel-Hamas war may disrupt operations, delay shipments, and harm sales, potentially leading to a material adverse effect on the company's financial results[45]. - Travel advisories and restrictions could impact the ability to receive supplies and materials, adversely affecting timely product manufacturing[46]. - Unfavorable national and global economic conditions may reduce customer demand, leading to longer sales cycles and increased price competition[47]. - The company may face increased costs and resource expenditure due to new tariffs and trade policy uncertainties, particularly with countries like China and Canada[49]. - The Russian invasion of Ukraine has led to sanctions and geopolitical instability, which could disrupt operations and adversely affect financial condition[50]. - Cybersecurity breaches and natural disasters pose significant risks that could disrupt operations and lead to financial losses, with potential impacts on market share[70]. - International operations are subject to regulatory restrictions and economic instability, which may adversely affect sales and profitability[71]. - The company may face significant costs related to potential infringement claims on intellectual property, which could adversely affect its financial condition[94]. - The company relies on trade secrets and non-disclosure agreements for intellectual property protection, as it does not hold any patents[92]. - The company is affected by rising labor costs due to high demand for high-tech personnel in Israel[97]. - The company may be classified as a passive foreign investment company (PFIC), which could impose adverse tax implications for U.S. investors[109]. - The company has faced challenges in obtaining directors' and officers' insurance on reasonable terms, which may impact its ability to retain key personnel[103]. - The company is subject to the Israeli Companies Law, which limits dividend distributions based on profitability and solvency thresholds[112]. - The obligation of personnel to perform military reserve service could disrupt operations if a significant number of employees are called up[124]. - The company has been affected by restrictions on travel and business operations due to heightened unrest, impacting agreements with partners[120]. - Tax benefits provided by the Israeli government may be reduced or eliminated, adversely affecting operating costs and financial results[131]. Investments and Development - The company has received a 40% royalty-bearing participation grant from the Israel Innovation Authority for an $800,000 R&D program aimed at improving production rates, extended until September 2025[64]. - The company invested approximately $15 million in new equipment and facility expansion over the three years ending December 31, 2024, and plans to invest an additional $10 million in capital expenditures in 2025[140]. - The company has received ITAR registration to penetrate the U.S. defense market, enhancing its position in the aerospace sector[164]. - The company has ongoing programs to upgrade processes through high-quality standards and employee training[166]. - The company invested in new machinery and equipment in 2024, including a new solder mask application department and various drilling machines[155]. Shareholder Returns - The company declared a cash dividend of $0.22 per share in November 2023, totaling approximately $1.3 million, paid on December 21, 2023[110]. - The company has experienced significant fluctuations in its ordinary shares' market price and volume, influenced by various external factors[106].

PETACH-TIKVA, Israel, April 8, 2025 /PRNewswire/ -- Eltek Ltd. (NASDAQ: ELTK), a global manufacturer and supplier of technologically advanced solutions in the field of printed circuit boards, announced today that it filed its annual report, containing audited consolidated financial statements for the year ended December 31, 2024, with the U.S. Securities and Exchange Commission. The annual report is available on the Company's website at www.nisteceltek.com. Shareholders may receive a hard copy of the annual ...

Group 1: Dividend Announcement - Eltek Ltd. has declared a cash dividend of US$0.19 per share, totaling approximately US$1.3 million, payable on April 29, 2025, to shareholders of record as of April 22, 2025 [1][2] - The dividend payment exceeds the Company's established dividend policy, reflecting appreciation for shareholder support and confidence in future growth [2] Group 2: Company Overview - Eltek is a global manufacturer and supplier of advanced solutions in printed circuit boards (PCBs), specializing in complex, high-quality PCBs for high-end markets [3] - The company is ITAR compliant and holds AS-9100 and NADCAP Electronics certifications, serving customers in defense, aerospace, and medical industries across multiple regions [3][4] - Founded in 1970, Eltek's headquarters, R&D, production, and marketing center are located in Israel, with operations in North America and various international markets [4]

Financial Data and Key Metrics Changes - In 2024, the company generated revenue of $46.5 million, consistent with 2023 levels but below expectations [6][20] - Gross profit for 2024 was $10.3 million, down from $13.1 million in 2023, resulting in a gross margin decrease from 28% to 22% [20][21] - Net profit for 2024 was $4.2 million, or $0.63 per share, compared to $6.4 million, or $1.07 per share in 2023 [22] - EBITDA decreased to $5.9 million in 2024 from $8.6 million in 2023 [22] - Cash and cash equivalents totaled $17.2 million as of December 31, 2024 [23] Business Line Data and Key Metrics Changes - The company faced operational challenges that constrained revenue growth, particularly in the construction and installation of new equipment [7][15] - Despite strong demand, there was no significant increase in backlog or pricing levels [10] Market Data and Key Metrics Changes - The company observed a slight uptick in activity in the industrial sectors over the past two months [8] - Growing tensions between the U.S. and Europe have led to increased defense budgets in several European nations, presenting growth opportunities in the defense sector [9] Company Strategy and Development Direction - The strategic focus remains on maintaining a balanced portfolio across defense, medical, and high-end industrial segments [9] - The company is working to secure large-scale production orders to enhance operational efficiency and production stability [11][12] - An emphasis on expanding commercial activities is aimed at increasing sales volume while leveraging high-end manufacturing capabilities [12] Management's Comments on Operating Environment and Future Outlook - Management indicated that operational challenges, rather than demand issues, are the primary concern for the next year or two [39] - The company is optimistic about overcoming technical support challenges as travel restrictions have eased [34] - There is a belief that competition from European firms in the Israeli market is limited and that aggressive pricing strategies may not be sustainable long-term [36][37] Other Important Information - Capital expenditures in 2024 were approximately $10 million, with similar levels anticipated for 2025 [13] - The company is actively recruiting additional employees to support expansion efforts amid labor market challenges [17][44] Q&A Session Summary Question: Are travel difficulties for technical support resolved? - Most travel restrictions have been lifted, and technicians are now able to provide support, although some equipment still requires online assistance [34][35] Question: Where is the competition coming from? - Competition is primarily from European companies entering the Israeli market with aggressive pricing, but this is expected to change as defense budgets in Europe increase [36][37] Question: Are operational challenges the main issue? - Yes, operational issues are the primary concern, not demand [39] Question: Is there a plan for a new facility in northern Israel? - There are no current plans for a new facility, but future investment plans will be considered after the current investment plan is completed [41] Question: How is the hiring process going? - Recruiting efforts are ongoing, and while salary increases have helped retain and attract employees, the labor market remains challenging [44]

Exhibit 99.1 Press Release Eltek Ltd. Reports Full Year and Fourth Quarter 2024 Financial Results Petach Tikva, Israel (March 11, 2025) Eltek Ltd. (NASDAQ: ELTK), a global manufacturer and supplier of technologically advanced solutions in the field of printed circuit boards (PCBs), today announced its financial results for the full year and fourth quarter ended December 31, 2024. Full Year and Fourth Quarter 2024 Highlights Additionally, the continued geopolitical instability in Eastern Europe due to the Ru ...

PETACH TIKVA, Israel, March 11, 2025 /PRNewswire/ -- Eltek Ltd. (NASDAQ:ELTK), a global manufacturer and supplier of technologically advanced solutions in the field of printed circuit boards (PCBs), today announced its financial results for the full year and fourth quarter ended December 31, 2024.Full Year and Fourth Quarter 2024 Highlights Revenues: Revenues for 2024 were $46.5 million, a slight decline of $0.2 million compared to 2023. Profitability: Net income reached $4.2 million in 2024 compared to $6. ...

PETACH-TIKVA, Israel, Feb. 27, 2025 /PRNewswire/ -- Eltek Ltd. (NASDAQ: ELTK), a global manufacturer and supplier of technologically advanced solutions in the field of printed circuit boards, announced today that it will release its financial results for the fourth quarter and year ended December 31, 2024 before the market opens on Tuesday, March 11, 2025. Eltek's financial results will be released over the news wires and will be posted on its corporate website at: http://www.nisteceltek.com.  On Tuesday, M ...

Financial Data and Key Metrics Changes - The company reported record revenue of $13.5 million for Q3 2024, an increase from $11.9 million in Q3 2023 [7][17] - Gross profit for Q3 2024 was $3.5 million, down from $3.7 million in Q3 2023, primarily due to a less favorable product mix [10][17] - Operating profit decreased to $1.9 million in Q3 2024 from $2.3 million in Q3 2023 [18] - Net profit for Q3 2024 was $1.7 million or $0.25 per share, compared to $2.1 million or $0.36 per share in Q3 2023 [19] - EBITDA for Q3 2024 amounted to $2.3 million, down from $2.6 million in Q3 2023 [19] - Positive cash flow from operating activities was $1.6 million in Q3 2024, compared to $3.6 million in Q3 2023 [20] Business Line Data and Key Metrics Changes - The self-defense market segment accounted for 64% of total sales, while the industrial market segment contributed 14% and the medical market segment accounted for 7% [7] - Demand in the industrial segment has slowed due to reduced demand from primary customers, but recovery is anticipated in 2025 [9] Market Data and Key Metrics Changes - Demand for products in India remains robust and continues to grow [9] - The company expects critical sectors such as medical and defense to continue generating strong demand for PCBs due to ongoing trade conflicts and global tensions [8] Company Strategy and Development Direction - The company is initiating co-production partnerships with specialized companies overseas to better meet customer demand and improve pricing [9] - An accelerated investment program is underway, with a $2 million investment in a new production facility dedicated to solder mask applications [11] - The company has adopted a dividend distribution policy, allowing for up to 25% of net profit to be distributed as dividends [14] Management's Comments on Operating Environment and Future Outlook - Management does not expect significant changes in market trends and anticipates steady growth in demand for high-end products [8] - The company has stabilized its workforce by hiring new employees and increasing wages to support recruitment [12] - Management believes that the gross profit margin will stabilize between 26% to 29% in the medium to long term [10][41] Other Important Information - The company is in the final stages of an ERP project aimed at streamlining processes and consolidating existing systems, expected to take approximately 2.5 years [13] Q&A Session Summary Question: What is the expected revenue mix for the defense sector going forward? - Management indicated that the increased backlog is mainly due to the strong defense sector, and profitability for these products is expected to remain stable or improve [24] Question: What is the remaining CapEx for the new facility? - The remaining CapEx for the accelerated investment plan is around $7 million to $8 million, which will be spent during 2025 [25][37] Question: What is the expected production capacity by the end of the investment program? - The expected production capacity will serve sales of approximately $55 million to $65 million by the end of the accelerated investment program [26] Question: Can you elaborate on the labor issues affecting the cost of goods sold? - The company had to increase salaries to retain and recruit employees due to high demand for labor in Israel [31] Question: Are there any updates on exploring opportunities outside of defense and medical markets? - The company is primarily focused on defense, aerospace, industrial, and medical segments, with no significant expansion into other areas expected [33] Question: Will the increase in wages be passed on to customers? - Management confirmed that the increase in wages is expected to be passed on to customers gradually [34][35] Question: What is the forecast for revenue growth in the fourth quarter? - Management does not provide specific forecasts for next quarter revenues but expects gross margins to stabilize in the mid to long term [41]

Financial Performance - Revenues for Q3 2024 were $13.5 million, a 14% increase compared to $11.9 million in Q3 2023[6] - Gross profit for Q3 2024 was $3.5 million, with a gross margin of 26%, down from 31% in Q3 2023[7] - Net income for Q3 2024 was $1.7 million, or $0.25 per fully diluted share, compared to $2.1 million, or $0.36 per fully diluted share in Q3 2023[7] - EBITDA for Q3 2024 was $2.3 million, representing 17% of revenues, down from $2.6 million or 22% of revenues in Q3 2023[8] - For the first nine months of 2024, revenues were $35.8 million, compared to $34.4 million in the same period of 2023[9] - Operating profit for the first nine months of 2024 was $4.0 million, down from $5.3 million in the first nine months of 2023[9] - Net income for Q3 2024 decreased to $1,712 million from $2,147 million in Q3 2023, representing a decline of 20.2%[26] Cash Flow and Assets - Cash and cash equivalents as of September 30, 2024, amounted to $18.1 million, supporting the company's growth strategy[3] - Operating cash flow for the nine months ended September 30, 2024, was $4,530 million, down from $6,542 million in the same period last year, a decrease of 30.7%[26] - Total cash used in investing activities for the nine months ended September 30, 2024, was $(14,582) million, compared to a cash inflow of $1,006 million in the same period of 2023[26] - Cash and cash equivalents at the end of Q3 2024 stood at $8,548 million, a decrease from $11,305 million at the end of Q3 2023[26] - Total assets as of September 30, 2024, were $58.8 million, an increase from $47.2 million at the end of 2023[22] Expenses and Adjustments - Depreciation and amortization expenses increased to $388 million in Q3 2024 from $299 million in Q3 2023, an increase of 29.7%[26] - Stock-based compensation rose to $160 million in Q3 2024, compared to $72 million in Q3 2023, reflecting an increase of 122.2%[26] - The effect of translation adjustments resulted in a positive impact of $108 million in Q3 2024, compared to a negative impact of $(228) million in Q3 2023[26] Inventory and Receivables - Trade receivables saw a significant decrease of $(2,735) million in Q3 2024, compared to an increase of $985 million in Q3 2023[26] - The company experienced a decrease in inventories of $(256) million in Q3 2024, compared to a decrease of $(47) million in Q3 2023[26] Future Plans and Dividends - The company plans to open a new 15,000 sq. ft. manufacturing space by year-end 2024, including a full Solder Mask Application line[4] - Eltek's Board of Directors has adopted a dividend policy allowing for an annual distribution of up to 25% of net income starting from the end of 2024[5] - The company reported a net cash inflow from financing activities of $9,590 million for the nine months ended September 30, 2024, compared to a net outflow of $(3,020) million in the same period last year[26]

PETACH TIKVA, Israel, Nov. 19, 2024 /PRNewswire/ -- Eltek Ltd. (NASDAQ: ELTK), a global manufacturer and supplier of technologically advanced solutions in the field of printed circuit boards (PCBs), today announced its financial results for the quarter ended September 30, 2024.Third Quarter 2024 Highlights Revenues were $13.5 million, up 14 % over Q3 2023 Operating profit was $1.9 million Profit before tax was $2.0 million Net income was $1.7 million or $0.25 per fully diluted share As of September 30, 2024 ...