Eltek .(US:ELTK)2019-04-17 15:08Financial Data and Key Metrics Changes - Full year revenue for 2018 increased to $33.9 million from $32.8 million in 2017, while Q4 2018 revenue decreased to $7.8 million from $9.1 million in Q4 2017 [7][11][13] - Gross profit for the full year improved to $2.6 million (7.7% of revenues) in 2018 from $1.3 million (4.1% of revenues) in 2017 [11] - Net loss for 2018 was $2.6 million ($1.28 per share) compared to a net loss of $3.8 million ($1.86 per share) in 2017 [12] - EBITDA was negative $421,000 in 2018, an improvement from negative $1.3 million in 2017 [12] - Q4 2018 net loss was $631,000 ($0.31 per share) compared to a net loss of $669,000 ($0.33 per share) in Q4 2017 [14] Business Line Data and Key Metrics Changes - The company has implemented a turnaround plan, including a new leadership team and efficiency measures to reduce costs [7][9] - Initial reductions in sales volume were noted due to the implementation of these efficiency measures, but improvements in on-time delivery and customer satisfaction are expected [8] Market Data and Key Metrics Changes - The company sees significant potential in the high-end PCB market, leveraging skilled engineers and experienced management to capitalize on strengths [9] Company Strategy and Development Direction - The company aims to return to profitability through headcount reductions, improving yield by 3%, and passing costs to customers to eliminate loss-making products [21][22] - A rights offering in March 2019 raised approximately $3.4 million, which will improve working capital and reduce line of credit [15] Management Comments on Operating Environment and Future Outlook - Management is optimistic about returning to profitability but cannot forecast the exact quarter for this turnaround [20] - The focus on improving cash flow through better purchasing and inventory management is a key strategy moving forward [22] Other Important Information - The company regained compliance with NASDAQ listing requirements after receiving approximately $2.5 million from the rights offering [17] Q&A Session Summary Question: When will the company turn around to profitability? - Management cannot forecast the specific quarter for profitability but has initiated several activities to achieve this goal [20] Question: What are the plans for shareholder value? - If the company's strategies succeed and profitability is restored, it is expected that the stock value will increase [23]