Eltek .(US:ELTK)2024-03-11 15:58Financial Data and Key Metrics Changes - The company achieved record revenue of $46.7 million in 2023, up from $39.7 million in 2022, representing an increase of approximately 25% [34] - Net profit for 2023 was $6.4 million or $1.07 per share, compared to $3.2 million or $0.55 per share in 2022, indicating a significant growth in profitability [12] - EBITDA increased to $8.6 million in 2023 from $4.5 million in 2022, reflecting strong operational performance [24] - Cash flow from operations improved to $8.9 million in 2023, compared to $3.8 million in 2022 [24] Business Line Data and Key Metrics Changes - Operating profit for 2023 was $7.3 million, up from $3 million in 2022, showcasing improved operational efficiency [12] - Gross profit rose by 58% to $13.1 million in 2023, compared to $8.3 million in 2022, driven by increased revenue [34] Market Data and Key Metrics Changes - The ongoing geopolitical situation in Israel and increased defense budgets in Europe are influencing demand for high-end products [4] - The company is diversifying its revenue streams beyond defense and medical devices, focusing on semiconductor chip production [20] Company Strategy and Development Direction - The company is executing an accelerated investment plan with a commitment of approximately $10 million, expected to fulfill orders by the end of 2024 [5] - There is a strategic focus on expanding production capacity and optimizing office utilization to support growth [21] - The company is actively seeking to acquire a PCB manufacturing company in the U.S. to capitalize on domestic production demand [33] Management's Comments on Operating Environment and Future Outlook - Management anticipates continued revenue growth in 2024, with a forecasted gross margin around 27% [38] - The backlog has increased by 130% since the initiation of the accelerated investment plan, indicating strong future demand [31] - Management acknowledges potential delays in the investment program due to logistical issues but is working to mitigate these challenges [6] Other Important Information - The company raised $10 million in capital in February 2024 to support ongoing growth initiatives [22] - All bank debt was repaid during 2023, positioning the company for future M&A opportunities [22] Q&A Session Summary Question: Expectations for 2024 revenue and gross profit margin - Management expects revenue to remain in the same area as 2023, around $0.4 million [14] Question: Stock-based compensation inclusion in expenses - Management confirmed that stock-based compensation is included in expenses [11] Question: Potential to reach $50 million in revenue for 2024 - Management did not provide an exact forecast but emphasized efforts to meet growth targets [26]