Eltek .(US:ELTK) Prnewswireยท2025-05-20 11:00Core 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].