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Eltek Receives Purchase Orders Totaling $2.4 Million
Prnewswire· 2025-08-25 11:30
Company Overview - Eltek Ltd. is a global manufacturer and supplier of technologically advanced solutions in the field of printed circuit boards (PCBs) and is recognized as a leading company in Israel's PCB industry [3][4] - The company specializes in complex and high-quality PCBs, including HDI, multilayered, and flex-rigid boards for high-end markets [3] - Eltek is ITAR compliant and holds AS-9100 and NADCAP electronics certifications, serving customers in defense, aerospace, and medical industries across Israel, the United States, Europe, and Asia [3] Recent Developments - Eltek announced it received orders totaling $2.4 million from a leading Israeli defense company, with product deliveries scheduled mainly for 2026 and 2027 [1][2] - The order pertains to critical PCB components that have been previously supplied to the customer, highlighting the advanced technological capabilities required for these products [2] Historical Context - Eltek was founded in 1970 and has its headquarters, R&D, production, and marketing center located in Israel, with additional operations through a subsidiary in North America and agents in Europe, India, South Africa, and South America [4]
Eltek .(ELTK) - 2025 Q2 - Earnings Call Transcript
2025-08-14 14:00
Financial Data and Key Metrics Changes - Revenues for Q2 2025 totaled $12.5 million, representing a 20% increase compared to the same period last year, maintaining strong momentum from Q1 2025 [5][6] - Gross profit reached $3 million, nearly double the results from the same quarter last year, with gross margin expanding to 24.1% from 15.6% in Q2 2024 [6][13] - Operational income rose to $1.5 million, up from $400,000 in Q2 2024, while net income was $400,000 or $0.05 per fully diluted share [7][14] - EBITDA for the quarter was $2 million, representing 15.6% of revenue, a significant decrease compared to Q2 2024 and Q1 2025 [8][14] Business Line Data and Key Metrics Changes - Commercial sales saw a modest increase, while defense and medical markets continued strong performance [8] - The revenue mix for the quarter included a higher percentage of rigid flex products, accounting for 65% to 70% of total revenues, which typically have higher prices and profits [19] Market Data and Key Metrics Changes - The company observed strong demand in the defense sector, which constitutes around 65% of total revenues, with expectations for continued demand from both Israeli and foreign markets [19][22] Company Strategy and Development Direction - The company is focused on expanding production capacity to support annual revenues of $55 million to $65 million, with significant investments in infrastructure and equipment [6][10] - A new 40-meter coating line is expected to arrive towards the end of 2025, with production ramp-up planned immediately upon arrival [10][30] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism regarding the strong demand in the defense sector and anticipated continued growth in military budgets, particularly from the US and European markets [22] - The company is addressing challenges in recruiting qualified manufacturing personnel by seeking to employ foreign workers through a government program [11] Other Important Information - The company recorded one-time financial expenses of $1 million due to a 9% devaluation of the U.S. Dollar against the Israeli shekel [7] - Cash flow used in operating activities amounted to $2.9 million, primarily due to an increase in trade receivables and inventory [14] Q&A Session Summary Question: Update on capital investment for the rest of 2025 and 2026 - The remaining investment includes the installment of the coating line, with an accelerated investment plan balance of around $6 million [18] Question: Revenue mix percentage for international and defense sectors - The defense sector accounts for approximately 65% of total revenues, with a higher mix of rigid flex products contributing to overall revenue [19] Question: Impact of strong defense demand on business in 2025 and 2026 - Strong demand is expected to continue, with military budgets increasing in both Israeli and foreign markets [22] Question: Backlog or order pipeline quantification - The backlog has increased by about 10% since the beginning of the year, but specific figures are not disclosed [24] Question: Annual revenue capacity after installing the coating line - The annual revenue potential is expected to reach up to $55 million to $60 million once the coating line is fully operational [30] Question: Reasons for negative cash flow from operating activities - Negative cash flow was attributed to delayed payments from a major customer and increased inventory levels due to the current situation in Israel [31] Question: Change in inventory levels - Inventory levels were increased mainly in lamination and aluminum due to the war in Israel, with no anticipated issues [35]
Eltek Ltd. Reports Strong Second-Quarter 2025 Results
Prnewswire· 2025-08-14 11:30
Core Insights - Eltek Ltd. reported a 20% increase in revenue for Q2 2025, reaching $12.5 million compared to $10.5 million in Q2 2024, driven by strong performance in defense and medical segments [2][5] - The gross margin expanded significantly to 24.1%, up from 15.6% in the same quarter last year, reflecting operational improvements and a favorable product mix [2][6] - Operating income surged by 259% to $1.5 million, more than tripling from $0.4 million in Q2 2024, indicating robust operational efficiency [2][6] Financial Performance - Revenues for the first six months of 2025 totaled $25.3 million, a 14% increase from $22.2 million in the same period of 2024 [2][10] - Gross profit for the first half of 2025 was $5.2 million, representing 21% of revenues, compared to $4.9 million (22% of revenues) in the first half of 2024 [10][11] - Net income for Q2 2025 was $0.4 million or $0.05 per diluted share, down from $0.8 million or $0.11 per diluted share in Q2 2024 [7][20] Operational Developments - The company is committed to expanding production capacity, with successful installation of new equipment and ongoing construction of new coating lines [3][4] - Staffing has increased by approximately 10% since January to meet growing demand while maintaining lead times [4] - A non-cash financial expense of $1.0 million was incurred due to the appreciation of the Israeli shekel, prompting a proactive update to the pricing model to protect margins [5][7] Non-GAAP Financial Metrics - EBITDA for Q2 2025 was $2.0 million, or 15.6% of revenues, compared to $0.8 million (7.6% of revenues) in Q2 2024 [9][22] - For the first six months of 2025, non-GAAP EBITDA was $3.1 million (12% of revenues), slightly up from $2.9 million (13% of revenues) in the same period of 2024 [12][22]
Eltek Sets Earnings Release Date and Conference Call to Report Second Quarter 2025 Results on August 14, 2025
Prnewswire· 2025-08-04 11:30
PETACH-TIKVA, Israel, Aug. 4, 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 second quarter of 2025 before the market opens on Thursday, August 14, 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 Thursday, August 14, 2025, at 9:00 a ...
Eltek .(ELTK) - 2025 Q1 - Earnings Call Transcript
2025-05-20 13:32
Financial Data and Key Metrics Changes - Revenues for Q1 2025 totaled $12.8 million, an increase from $11.8 million in Q1 2024 [15] - Gross profit decreased to $2.2 million from $3.3 million in the same period last year, primarily due to higher labor costs and lower production yields [16] - Operating profit for the quarter was $700,000 compared to $1.7 million in the prior year [16] - Net income for Q1 2025 was $1 million or $0.15 per share, down from $1.7 million or $0.27 per share in Q1 2024 [17] - EBITDA for the quarter was $1.2 million, a decline from $2.1 million in the previous year [17] - Cash flow from operating activities totaled $100,000, with $15.7 million in cash and equivalents as of March 31, 2025, and no outstanding debt [17] Business Line Data and Key Metrics Changes - The company faced challenges in optimizing machine performance and production yield due to the installation of new equipment in the Soldier Mask Application department [5][6] - Production has resumed at a stable pace since May, with efficiency levels returning to pre-transition standards [6] Market Data and Key Metrics Changes - Strong demand for products across all segments has led to increased lead times for customer delivery [8] - The company anticipates that the competitive position in the U.S. market may benefit from higher tariffs on products from other exporting countries [9][10] Company Strategy and Development Direction - The company is diversifying its supply base in the Far East to support commercial activity expansion and exploring opportunities for partial production abroad [11] - A company-wide process to replace the core information system is underway, expected to take approximately 18 months [12] Management's Comments on Operating Environment and Future Outlook - Management acknowledged operational difficulties in Q1 due to reduced yield affecting gross margin but expressed confidence in overcoming these issues with local support [28] - The new production lines expected to arrive by August 2025 will significantly increase production capacity and efficiency [31][33] Other Important Information - The company is continuing construction work for new plating lines, with a delay of approximately two months reported for the first significant coating line [7] Q&A Session Summary Question: Will the new line impact profitability? - Management confirmed that the new line will positively impact profitability by significantly increasing production capacity [21] Question: Will the new line interfere with existing production? - Management clarified that the new line will not interfere with current production [23] Question: How do you see sales picking up after resolving operational difficulties? - Management indicated that the holdback in Q1 was due to reduced yield affecting gross margin, but they expect to overcome these issues [28] Question: What is the timeline for the new plating lines? - Management expects the first plating line to arrive by August 2025, with installation taking several months [31] Question: Will the new lines only help operational efficiency or also increase revenues? - Management stated that the new lines will increase capacity, quality, and efficiency, supporting revenue growth [33]
Eltek .(ELTK) - 2025 Q1 - Earnings Call Transcript
2025-05-20 13:30
Financial Data and Key Metrics Changes - Revenues for Q1 2025 totaled $12.8 million, an increase from $11.8 million in Q1 2024 [15] - Gross profit decreased to $2.2 million from $3.3 million in the same period last year, primarily due to higher labor costs and lower yields [16] - Operating profit for the quarter was $700,000 compared to $1.7 million in the prior year [16] - Net income for the quarter was $1 million or $0.15 per share, down from $1.7 million or $0.27 per share in Q1 2024 [17] - EBITDA for the quarter was $1.2 million compared to $2.1 million in the prior year [17] - Cash flow from operating activities totaled $100,000, with $15.7 million in cash and equivalents as of March 31, 2025, and no outstanding debt [17] Business Line Data and Key Metrics Changes - The company faced challenges in optimizing machine performance and achieving precise technical adjustments due to the installation of new equipment, leading to lower production yield [6] - Production has resumed at a stable pace since May, with efficiency levels returning to pre-transition levels [6] Market Data and Key Metrics Changes - Strong demand for products across all segments has led to increased lead times for customer delivery [8] - The company anticipates that the competitive position in the U.S. market may benefit from higher tariffs on products from other exporting countries [9] - There is uncertainty regarding the tariff rate that may apply to products from Israel under the new U.S. tariff policy [8] Company Strategy and Development Direction - The company is working to diversify its supply base in the Far East to support commercial activity expansion [11] - A company-wide process to replace the core information system is underway, expected to take approximately 18 months [12] - The company aims to optimize internal workflow and implement efficient methodologies through this IT transformation [12] Management's Comments on Operating Environment and Future Outlook - Management noted that operational difficulties in Q1 were due to reduced yield affecting gross margin, but local engineers have helped overcome some challenges [28] - The company expects to increase capacity and efficiency with the arrival of new plating lines by the end of 2025 [31] - There is confidence in the demand to support increased capacity [34] Other Important Information - The company is continuing construction work on the basement floor for new plating lines, with delays in equipment delivery from European suppliers [7] - The Israeli labor market remains challenging for attracting qualified candidates, impacting hiring efforts [7] Q&A Session Summary Question: Will the new line impact profitability? - Management confirmed that the new line, expected to be operational by mid-2026, will positively impact profitability by significantly increasing production [21] Question: Will the new line interfere with current production? - Management clarified that the new line will not interfere with existing production [23] Question: How do operational difficulties affect sales? - Management indicated that reduced yield in Q1 affected gross margin, but local support has helped mitigate some issues [28] Question: What is the timeline for new plating lines? - The first plating line is expected to arrive by August, with installation taking several months, aiming for stability by the end of 2025 [31] Question: Will new lines help in increased revenues? - Management stated that the new lines will significantly increase capacity, quality, and efficiency, supporting revenue growth [33]
Eltek Ltd. Reports 2025 First Quarter Financial Results
Prnewswire· 2025-05-20 11:00
Core Viewpoint - Eltek Ltd. reported a revenue increase of approximately 8% year-over-year for Q1 2025, driven by strong demand for its printed circuit board products, despite facing challenges with gross margins due to rising labor costs and new production equipment integration [2][4]. Financial Performance - Revenues for Q1 2025 were $12.8 million, up from $11.8 million in Q1 2024, and 18.5% higher than Q4 2024 [2][5]. - Net income for Q1 2025 was $1.0 million, or $0.15 per fully diluted share, compared to $1.7 million, or $0.27 per fully diluted share in Q1 2024 [6][9]. - Gross profit for Q1 2025 was $2.2 million, representing a gross margin of 17%, down from $3.3 million and 28% in Q1 2024 [5][6]. - Operating profit for Q1 2025 was $0.7 million, compared to $1.7 million in Q1 2024 [5][9]. - EBITDA for Q1 2025 was $1.2 million, or 9% of revenues, down from $2.1 million, or 18% of revenues in Q1 2024 [7]. Cash Position - As of March 31, 2025, cash and short-term bank deposits totaled $15.7 million, with no outstanding debt [6]. Future Outlook - The company plans to complete its accelerated investment program by mid-2026 and is preparing for the integration of new production lines [3]. - Eltek anticipates that its efforts to expand commercial sales will yield positive results throughout 2025 and beyond [4]. Company Overview - Eltek Ltd. specializes in the manufacture of technologically advanced printed circuit boards (PCBs) and serves high-end markets, including defense, aerospace, and medical industries [11]. - The company is ITAR compliant and holds AS-9100 and NADCAP Electronics certifications, indicating its commitment to quality and regulatory standards [11].
Eltek Sets Earnings Release Date and Conference Call to Report First Quarter 2025 Results on May 20, 2025
Prnewswire· 2025-05-12 11:30
To participate, please call the following teleconference numbers. Please allow for additional time to connect prior to the call: PETACH-TIKVA, Israel, May 12, 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 first quarter of 2025 before the market opens on Tuesday, May 20, 2025. Eltek's financial results will be released over the n ...
Eltek .(ELTK) - 2024 Q4 - Annual Report
2025-04-08 11:41
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].
Eltek Announces Filing of 2024 Annual Report
Prnewswire· 2025-04-08 11:40
Company Overview - Eltek Ltd. is a global manufacturer and supplier of technologically advanced solutions in the field of printed circuit boards (PCBs) [3] - The company specializes in complex and high-quality PCBs, including HDI, multilayered, and flex-rigid boards for the high-end market [3] - Eltek is ITAR compliant and holds AS-9100 and NADCAP Electronics certifications, serving customers in defense, aerospace, and medical industries across Israel, the United States, Europe, and Asia [3] Financial Reporting - Eltek filed its annual report containing audited consolidated financial statements for the year ended December 31, 2024, with the U.S. Securities and Exchange Commission [1] - The annual report is accessible on the company's website, and shareholders can request a hard copy free of charge [2] Company History and Operations - Founded in 1970, Eltek's headquarters, R&D, production, and marketing center are located in Israel [4] - The company operates through a subsidiary in North America and utilizes agents and distributors in Europe, India, South Africa, and South America [4]