Eltek .(ELTK) - 2020 Q3 - Earnings Call Transcript

Financial Data and Key Metrics Changes - Revenues for Q3 2020 were $9.3 million, consistent with Q3 2019 revenues [7] - Gross profit increased from $1.75 million (18.9% of revenues) in Q3 2019 to $1.82 million (19.7% of revenues) in Q3 2020 [22] - Operating profit for Q3 2020 was $638,000 (6.9% of revenues), compared to $568,000 (6.1% of revenues) in Q3 2019 [23] - Net profit was $598,000 ($0.14 per share) in Q3 2020, up from $391,000 ($0.09 per share) in Q3 2019 [23] - EBITDA was approximately $1 million in Q3 2020, compared to $940,000 in Q3 2019 [23] - Positive operating cash flow was $873,000 in Q3 2020, down from $1.4 million in Q3 2019 [24] Business Line Data and Key Metrics Changes - Revenue from the defense sector and contract electronic manufacturers grew from $21.7 million in the first nine months of 2019 to $23.5 million in the first nine months of 2020, an 8% year-over-year growth [17] - Medical sector contributed 8.7% of revenue during the first nine months of 2020, representing a 13% growth year-over-year [18] Market Data and Key Metrics Changes - Sales to customers in Israel grew by 15%, while there was an 8% growth in sales to the defense segments [7] - The Indian and Italian markets experienced a 22% decline due to customer shutdowns related to COVID-19 [7] Company Strategy and Development Direction - The company continues to invest in new equipment to benefit from the soft market in capital equipment manufacturing [15] - Plans to expand facilities and infrastructure to support long-term sales growth during 2020 and 2021 [16] - The company sees opportunities for growth in the US market due to deteriorating US-China relations [13] Management's Comments on Operating Environment and Future Outlook - Management expressed pride in employee efforts to maintain performance despite challenges posed by COVID-19 [9] - The company has faced operational difficulties but has managed to maintain production of PCBs while ensuring workforce safety [12] - Management anticipates continued challenges from customers in India and Italy due to COVID-19 impacts [14] Other Important Information - The company filed a shelf registration statement to raise additional funds for planned growth [25] - A prospectus was issued to shareholders allowing them to purchase shares at a subscription price of $3.90 [26] Q&A Session Summary - There were no questions during the Q&A session [27]