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 Results Announcement - Eltek will release its financial results for the fourth quarter and year ended December 31, 2024, before the market opens on March 11, 2025 [1] - The financial results will be disseminated via news wires and posted on the corporate website [1] Conference Call Details - A conference call to discuss the financial results will take place on March 11, 2025, at 9:30 a.m. Eastern Time, featuring remarks from the CEO and CFO [2] - Participants can join the call using specific teleconference numbers provided for the United States, Israel, and international callers [2] - A replay of the call will be available on the corporate website approximately 24 hours after the call and archived for 30 days [2] Company History and Operations - Eltek was founded in 1970, with its headquarters, R&D, production, and marketing center located in Israel [4] - The company operates through a subsidiary in North America and has agents and distributors in Europe, India, South Africa, and South America [4]

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]

Core Viewpoint - Eltek Ltd. reported strong financial results for Q3 2024, with revenues reaching $13.5 million, a 14% increase compared to Q3 2023, driven by robust demand in defense, aerospace, and medical device sectors [2][5][8]. Financial Performance - Revenues for Q3 2024 were $13.5 million, up from $11.9 million in Q3 2023, marking a 14% increase [5]. - Gross profit for Q3 2024 was $3.5 million, with a gross margin of 26%, compared to $3.7 million and 31% in Q3 2023 [5]. - Operating profit for Q3 2024 was $1.9 million, down from $2.3 million in Q3 2023 [5]. - 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 [5][8]. - For the first nine months of 2024, revenues totaled $35.8 million, an increase from $34.4 million in the same period of 2023 [7]. Investment and Growth Strategy - The company plans to open a new 15,000 sq. ft. manufacturing space by year-end 2024, which will include a state-of-the-art full Solder Mask Application line [3]. - 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 [4]. Cash Position - As of September 30, 2024, cash and cash equivalents amounted to $18.1 million, providing significant financial support for growth strategies [2][5].

PETACH TIKVA, Israel, Aug. 27, 2024 /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 received orders totaling $3.5 million from two defense customers. The products are with high technology requirements and to be delivered beginning in the fourth quarter of 2024 through the end of 2026. The Company expects to receive additional long-term orders from these customers in the near te ...

Eltek Ltd. (NASDAQ:ELTK) Q2 2024 Earnings Conference Call August 15, 2024 9:30 AM ET Company Participants Eli Yaffe - Chief Executive Officer Ron Freund - Chief Financial Officer Conference Call Participants Tom Kerr - Zacks Investment Research Operator Ladies and gentlemen, thank you for standing by. Welcome to the Eltek Limited 2024 Second Quarter Financial Results Conference Call. All participants are present in listen-only mode. Following management's formal presentation, instructions will be given for ...

Exhibit 99.1 ELTEK LTD. AS OF JUNE 30, 2024 U.S. Dollars in thousands UNAUDITED INDEX | --- | --- | |-------------------------------------------------------------------------------|----------------| | | Page | | INTERIM CONDENSED CONSOLIDATED BALANCE SHEETS | F-2 - F-3 | | INTERIM CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME | F-4 | | INTERIM CONDENSED CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY | F-5 - F-6 | | INTERIM CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS | F-7 - F-8 | | NOTES TO ...

PETACH TIKVA, Israel, Aug. 15, 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 June 30, 2024. Second Quarter 2024 Highlights Revenues were $10.5 million Operating profit was $0.4 million Profit before tax was $0.9 million Net income was $0.8 million or $0.11 per fully diluted share As of June 30, 2024 cash and cash equivalents amo ...

PETACH-TIKVA, Israel, Aug. 5, 2024 /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 2024 before the market opens on Thursday, August 15, 2024. 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 15, 2024, at 9:30 ...

Eltek Ltd. (NASDAQ:ELTK) Q1 2024 Earnings Conference Call May 21, 2024 8:30 AM ET Company Participants Eli Yaffe - CEO Ron Freund - VP, Finance and CFO Conference Call Participants Mark Sharogradsky - Kepler Capital Operator Ladies and gentlemen, thank you for standing by. Welcome to the Eltek Ltd. 2024 First Quarter Financial Results Conference Call. All participants are present in listen-only mode. [Operator Instructions] As a reminder, this conference is being recorded. Before I turn the call over to Mr. ...