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Eltek .(ELTK) - 2024 Q4 - Annual Report
2025-04-08 11:35
Financial Performance - Revenues for 2024 were $46.5 million, a slight decline of 0.4% compared to $46.7 million in 2023[6]. - Net income for 2024 was $4.2 million, down 34.4% from $6.4 million in 2023, with diluted EPS at $0.63 compared to $1.07 in 2023[6][14]. - Q4 2024 revenues were $10.8 million, a decrease of 12.2% from $12.3 million in Q4 2023, with net income at $0 million compared to $1.3 million in Q4 2023[6][17]. - Gross profit for 2024 was $10.3 million, representing 22% of revenues, down from $13.1 million or 28% of revenues in 2023[12]. - EBITDA for 2024 was $5.9 million, accounting for 13% of revenues, compared to $8.6 million or 18% of revenues in 2023[15]. Strategic Initiatives - The company is undergoing a strategic transition with a $15 million investment plan aimed at enhancing manufacturing capabilities and increasing annual production capacity to $55 million to $65 million[3][4]. - Eltek is positioned to leverage market opportunities by enhancing manufacturing capabilities and strengthening supply chain resilience[9]. - The company anticipates improved operational performance as the investment program progresses, despite short-term fluctuations in profitability[5][10]. Asset and Equity Changes - Total assets increased to $60.2 million in 2024 from $47.2 million in 2023, with total shareholders' equity rising to $41.2 million from $26.9 million[31]. Cash Flow and Investments - Net cash provided by operating activities for the twelve months ended December 31, 2024, was $4,540 million, down from $8,862 million in 2023, reflecting a decline of approximately 48.5%[35]. - Cash flows from investing activities showed a net cash outflow of $15,871 million for the twelve months ended December 31, 2024, compared to $2,959 million in 2023, indicating a substantial increase in investment expenditures[35]. - The company reported a purchase of fixed assets totaling $9,506 million for the twelve months ended December 31, 2024, compared to $2,432 million in 2023, indicating a significant increase in capital expenditures[35]. - The exercise of options generated $296 million in cash for the twelve months ended December 31, 2024, compared to $863 million in 2023, reflecting a decrease in option exercises[35]. Inventory and Receivables Management - The company reported a decrease in inventories of $3,532 million for the twelve months ended December 31, 2024, compared to a decrease of $1,139 million in 2023, suggesting a significant reduction in stock levels[35]. - The company reported a decrease in trade receivables of $988 million for the twelve months ended December 31, 2024, compared to a decrease of $1,010 million in 2023, indicating a slight improvement in receivables management[35]. Cash and Dividends - Cash and cash equivalents at the end of the period were $7,575 million as of December 31, 2024, down from $9,278 million at the end of the same period in 2023[35]. - The company did not distribute dividends in the three months ended December 31, 2024, compared to a distribution of $1,321 million in the same period of 2023[35]. Market Trends - The global PCB industry is experiencing shifts due to geopolitical factors, with increased demand for defense-related PCBs driven by rising defense budgets worldwide[7][8].
Eltek Declares a Cash Dividend of $0.19 per Share
Prnewswire· 2025-04-08 11:30
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]
Eltek .(ELTK) - 2024 Q4 - Earnings Call Transcript
2025-03-11 20:55
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]
Eltek .(ELTK) - 2024 Q4 - Earnings Call Transcript
2025-03-11 16:48
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 flow from operating activities was $4.5 million in 2024, down from $8.9 million in 2023 [22] Business Line Data and Key Metrics Changes - The company faced operational challenges that constrained revenue growth despite strong demand, particularly in the defense sector [7][9] - The operational difficulties included delays in equipment installation and increased defect rates due to production stoppages [15][17] Market Data and Key Metrics Changes - The company observed a slight uptick in activity in the industrial sectors over the past two months, indicating a positive market environment [8] - Competition from European firms entering the Israeli market was noted, although it is believed to be limited and unsustainable in the long term [10][37] Company Strategy and Development Direction - The strategic focus remains on a balanced portfolio across defense, medical, and high-end industrial segments [9] - The company is actively pursuing large-scale production orders and enhancing commercial activities to increase sales volume [12] - Future investments are planned post-2025, contingent on the completion of the current accelerated investment plan [41] Management's Comments on Operating Environment and Future Outlook - Management emphasized that operational issues, rather than demand, are the primary challenges facing the company [39] - The company expects to maintain a gross margin of 26% to 29% in the midterm, despite recent operational difficulties [49] Other Important Information - The company maintained a solid cash position of approximately $17 million after capital expenditures of about $10 million [7] - The first new plating line was delivered and is operational, while additional lines are scheduled for delivery in 2025 and 2026 [16] 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 issues remain with online support [34][35] Question: Are competitive pressures faced in the Israeli or European market? - The competition mentioned is primarily from European companies entering the Israeli market with aggressive pricing, which is expected to be unsustainable [36][37] Question: Are operational challenges more significant than demand issues? - Management confirmed that 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 company addressing hiring challenges? - The company is continuously working on recruitment efforts, with recent salary increases helping to retain and attract employees [44]
Eltek Ltd. Reports Full Year and Fourth Quarter 2024 Financial Results
Prnewswire· 2025-03-11 12:30
Company Overview - Eltek Ltd. is a global manufacturer and supplier of advanced solutions in the field of printed circuit boards (PCBs) [20] - The company specializes in complex and high-quality PCBs for high-end markets, including defense, aerospace, and medical industries [20] Financial Performance - For the full year 2024, Eltek reported revenues of $46.5 million, a slight decline of $0.2 million compared to 2023 [10][11] - Net income for 2024 was $4.2 million, down from $6.4 million in 2023, with diluted earnings per share (EPS) of $0.63 compared to $1.07 in 2023 [10][12] - In Q4 2024, revenues were $10.8 million, down from $12.3 million in Q4 2023, with net income at $0 million compared to $1.3 million in the same period last year [10][14][15] Strategic Transition and Investment - Eltek is undergoing a strategic transition expected to continue through mid-2026, initiated by a $15 million investment plan aimed at enhancing manufacturing capabilities and expanding production capacity to $55 million to $65 million annually [3][4] - The investment plan includes the installation of new equipment and production lines while maintaining ongoing production, which has led to temporary disruptions and inefficiencies impacting Q4 2024 [4][5] Market Trends and Industry Outlook - The global PCB industry is experiencing dynamic shifts due to geopolitical and economic factors, including trade tensions between the US and China, which are prompting companies to reduce dependency on Chinese manufacturing [6] - Increased defense budgets worldwide, driven by geopolitical instability, are heightening demand for high-reliability PCBs used in advanced military equipment and secure communication infrastructure [7][8] - Eltek is strategically positioned to leverage these trends by enhancing its manufacturing capabilities and strengthening supply chain resilience [8] Management Insights - CEO Eli Yaffe noted sustained demand for PCBs, with recent tenders expected to positively impact the company long-term [9] - The strategic investments in advanced manufacturing capabilities are aimed at driving operational efficiency and innovation, despite potential short-term fluctuations in profitability [9]
Eltek Sets Earnings Release Date and Conference Call to Report Fourth Quarter 2024 and Annual Results on March 11, 2025
Prnewswire· 2025-02-27 12:30
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]
Eltek .(ELTK) - 2024 Q3 - Earnings Call Transcript
2024-11-19 20:48
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]
Eltek .(ELTK) - 2024 Q3 - Quarterly Report
2024-11-19 12:35
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]
Eltek Ltd. Reports 2024 Third Quarter Financial Results
Prnewswire· 2024-11-19 12:30
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].
Eltek Receives Purchase Orders Totaling $3.5 Million
Prnewswire· 2024-08-27 12:40
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 ...