Eltek .(US:ELTK)2019-11-20 16:32Financial Data and Key Metrics Changes - Revenue for Q3 2019 increased to $9.3 million, compared to $8.5 million in Q3 2018, reflecting a growth of approximately 9.4% [7][11] - Gross profit rose from $973,000 (11.4% of revenues) in Q3 2018 to $1.8 million (18.9% of revenues) in Q3 2019 [11] - Operating profit was $568,000 in Q3 2019, a turnaround from an operating loss of $307,000 in the same quarter last year [12] - Net profit for Q3 2019 was $391,000 ($0.09 per fully diluted share), compared to a net loss of $463,000 ($0.23 per fully diluted share) in Q3 2018 [12] - Positive EBITDA of $940,000 in Q3 2019, up from $109,000 in Q3 2018 [12] - Net cash provided by operating activities was $1.4 million in Q3 2019, compared to $164,000 in Q3 2018 [13] Business Line Data and Key Metrics Changes - The company continues to implement turnaround plans, although revenue growth is still not fully reflected [8] - The military products segment may benefit from macroeconomic conditions, particularly regarding U.S. imports from China [8] Market Data and Key Metrics Changes - The company operates in a niche market within the PCB industry, focusing on low volume mix products, which reduces competition [17] - The primary competitor in Israel is PCB Technologies, while in the U.S., all PCB manufacturers are considered competition [18] Company Strategy and Development Direction - The company aims to renew its position as a leading high-end PCB manufacturer, focusing on operational efficiency and expanding its business [9][21] - A shelf registration statement was filed to enable potential future fundraising, depending on market conditions [14][19] Management's Comments on Operating Environment and Future Outlook - Management acknowledges ongoing challenges but emphasizes a focus on improving operational efficiency and maintaining positive cash flow [9][20] - Current cash flow is positive, indicating a financially stable condition leading into 2020 [20] Other Important Information - The company raised $3.3 million through a rights offering to improve working capital and reduce line of credit [14] Q&A Session Summary Question: Who are your competitors and what is your competitive advantage? - The company operates in the PCB business with a major competitor in Israel being PCB Technologies, and in the U.S., all PCB manufacturers are competitors. The company is in a niche segment of low volume mix products, which reduces competition [16][17][18] Question: Are there plans for future capital offerings? - A shelf prospectus was filed to provide the ability to raise funds if market conditions support such actions, but no further comments were made on this matter [19] Question: Is the company in a financially stable condition leading into 2020? - Management confirmed that current cash flow is positive, indicating financial stability [20]