SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
F O R M 6-K
REPORT OF FOREIGN PRIVATE ISSUER PURSUANT TO RULE 13a-16 OR 15d-16
UNDER THE SECURITIES EXCHANGE ACT OF 1934
For the month of August 2024
Commission file number 000-28884
Eltek Ltd.
(Name of Registrant)
Sgoola Industrial Zone, Petach Tikva, Israel
(Address of Principal Executive Office)
Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40-F.
Form 20-F ☒
Form 40-F ☐
Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(1): ☐
Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(7): ☐
Eltek Ltd.
EXPLANATORY NOTE
On August 15, 2024 Eltek issued a press release
reporting second quarter 2024 financial results. A copy of this press release is furnished herewith as Exhibit 99.1.
EXHIBIT INDEX
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its
behalf by the undersigned, thereunto duly authorized.
| |
ELTEK LTD.
|
| |
(Registrant)
|
| |
|
| |
By: /s/Ron Freund
|
| |
Ron Freund
|
| |
Chief Financial Officer
|
Date: August 15, 2024
Press Release
Eltek Ltd. Reports 2024 Second Quarter Financial Results
Petach Tikva, Israel (August 15, 2024) Eltek Ltd. (NASDAQ: ELTK), a global manufacturer and supplier of technologically
advanced solutions in the field of printed circuit boards (PCBs), today announced its financial results for the quarter ended June 30, 2024.
Second Quarter 2024 Highlights
|
◾ |
Revenues were $10.5 million
|
|
◾ |
Operating profit was $0.4 million
|
|
◾ |
Profit before tax was $0.9 million
|
|
◾ |
Net income was $0.8 million or $0.11 per fully diluted share
|
|
◾ |
As of June 30, 2024 cash and cash equivalents amounted $18.3 million.
|
"Eltek has demonstrated consistent growth over the past several quarters, driven by our commitment to innovation and customer
satisfaction. However, this quarter, we experienced a decrease in revenues and profits compared to the previous quarter and the corresponding quarter last year. This decline is attributed to a significant timing shift by some key customers, who
prioritized orders for PCBs with medium technology requirements, resulting in lower prices and margins. Orders for more complex, higher-margin PCBs were pushed back and are scheduled to be produced in the third quarter. While this has impacted our
short-term financial performance, we remain confident in our long-term strategy and market position," said Eli Yaffe, CEO of Eltek.
"We expect to return in in the third quarter to the profitability parameters of previous quarters, as product mix strategies are
realigned. Our backlog as of today increased by 30% since the beginning of 2024. This increase will support our planned growth in revenues and profitability. We remain committed to delivering value to our shareholders and are taking the necessary
steps to ensure that we continue our growth trend. Our team is focused on optimizing our product offerings and operational efficiencies to drive profitability and sustain our market leadership," concluded Mr. Yaffe.
Second Quarter 2024 GAAP Financial Results
Revenues for the second quarter of 2024 were $10.5 million
compared to $11.0 million in the second quarter of 2023.
Gross profit for the second quarter of 2024 was $1.6 million (16%
of revenues) compared to $3.0 million (27% of revenues) in the second quarter of 2023.
Operating
profit for the second quarter of 2024 was $0.4 million compared to operating profit of $1.4 million in the second quarter of 2023.
Financial
income for the second quarter of 2024 was $0.5 million compared to financial income of $0.2 million in the second quarter of 2023. Financial income
primarily results from the erosion of the NIS against the US dollar.
Profit before
income tax for the second quarter of
2024 was $0.9 million compared to $1.6 million in the second quarter of 2023.
Net income for the second quarter of 2024 was $0.8 million or
$0.11 per fully diluted share compared to net income of $1.3 million or $0.22 per fully diluted share in the second quarter of 2023.
Second Quarter 2024 Non-GAAP Financial Results
EBITDA for the second quarter of 2024 was $0.8 million (7.6% of revenues) compared to EBITDA of $1.7 million (15.3% of revenues) in the second quarter of 2023;
First Six Months 2024 GAAP Financial Results
Revenues for the first six months of 2024 were $22.2 million
compared to $22.5 million in the first six months of 2023.
Gross profit for the first six months of 2024 was $4.9 million
(22% of revenues) compared to $6.0 million (26% of revenues) in the first six months of 2023.
Operating
profit for the first six months of 2024 was $2.1 million compared to operating profit of $3.0 million in the first six months of 2023.
Financial
income for the first six months of 2024 was $0.8 million compared to financial income of $0.5 million in the first six months of 2023. Financial income
primarily results from the erosion of the NIS against the US dollar.
Profit before
income tax for the first six months of
2024 was $3.0 million compared to $3.5 million in the first six months of 2023.
Net profit for the first six months of 2024 was $2.5 million or
$0.38 per fully diluted share compared to net profit of $2.9 million or $0.49 per fully diluted share in the first six months of 2023.
First Six Months 2024 Non-GAAP Financial Results
EBITDA for the first six months of 2024 was a $2.9 million (13% of revenues) compared to EBITDA of $3.6 million (16% of revenues) in the first six months of 2023.
About our Non-GAAP Financial Information
The Company reports financial results in accordance with U.S. GAAP and herein provides some non-GAAP measures, including EBITDA.
These non-GAAP measures are not in accordance with, nor are they a substitute for, GAAP measures. These non-GAAP measures are intended to supplement the Company’s presentation of its financial results that are prepared in accordance with GAAP. The
Company uses the non-GAAP measures presented to evaluate and manage the Company’s operations internally. The Company is also providing this information to assist investors in performing additional financial analysis. Reconciliation between the
Company's results on a GAAP and non-GAAP basis is provided in the table below.
Conference Call
Today, Thursday, August 15, 2024, at 9:30am Eastern Time (16:30pm Israel Time, 6:30am Pacific Time), Eltek will conduct a
conference call to discuss the results. The call will feature remarks by Eli Yaffe, Chief Executive Officer and Ron Freund, Chief Financial Officer.
To participate, please call the following teleconference numbers. Please allow for additional time to connect prior to the call:
|
United States:
|
1-866-860-9642
|
|
Israel:
|
03-918-0691
|
|
International:
|
+972-3-918-0691
|
To Access a Replay of the Call
A replay of the call will be available for 30 days on the Investor Info section on Eltek’s
corporate website at http://www.nisteceltek.com approximately 24 hours after the conference call is completed.
About Eltek
Eltek – ”Innovation Across the Board”, is a global manufacturer and supplier of technologically advanced solutions in the field
of printed circuit boards (PCBs), and is an Israeli leading company in this industry. PCBs are the core circuitry of most electronic devices. Eltek specializes in the manufacture and supply of complex and high quality PCBs, HDI, multilayered and
flex-rigid boards for the high-end market. Eltek is ITAR compliant and has AS-9100 and NADCAP Electronics certifications. Its customers include leading companies in the defense, aerospace and medical industries in Israel, the United States, Europe
and Asia.
Eltek was founded in 1970. The Company’s headquarters, R&D, production and marketing center are located in Israel. Eltek
also operates through its subsidiary in North America and by agents and distributors in Europe, India, South Africa and South America.
For more information, visit Eltek's web site at www.nisteceltek.com
Forward Looking Statement
Some of the statements included in this press release may be forward-looking statements that involve a number of risks and
uncertainties including, but not limited to expected results in future quarters, the impact of the Coronavirus on the economy and our operations, risks in product and technology development and rapid technological change, product demand, the impact
of competitive products and pricing, market acceptance, the sales cycle, changing economic conditions and other risk factors detailed in the Company’s Annual Report on Form 20-F and other filings with the United States Securities and Exchange
Commission. Any forward-looking statements set forth in this press release speak only as of the date of this press release. The information found on our website is not incorporated by reference into this press release and is included for reference
purposes only.
Investor Contact
Ron Freund
Chief Financial Officer
Investor-Contact@nisteceltek.com
+972-3-939-5023
(Tables follow)
|
Eltek Ltd.
|
|
Consolidated Statements of Income
|
|
U.S dollars in thousands (except per share data)
|
| |
|
Three months ended
|
|
|
Six months ended
|
|
| |
|
June 30,
|
|
|
June 30,
|
|
| |
|
2024
|
|
|
2023
|
|
|
2024
|
|
|
2023
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenues
|
|
|
10,466
|
|
|
|
11,043
|
|
|
|
22,249
|
|
|
|
22,513
|
|
|
Costs of revenues
|
|
|
(8,830
|
)
|
|
|
(8,091
|
)
|
|
|
(17,361
|
)
|
|
|
(16,546
|
)
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross profit
|
|
|
1,636
|
|
|
|
2,952
|
|
|
|
4,888
|
|
|
|
5,967
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Research and development expenses, net
|
|
|
(47
|
)
|
|
|
(15
|
)
|
|
|
(62
|
)
|
|
|
(24
|
)
|
|
Selling, general and administrative expenses
|
|
|
(1,184
|
)
|
|
|
(1,543
|
)
|
|
|
(2,700
|
)
|
|
|
(2,960
|
)
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating profit
|
|
|
405
|
|
|
|
1,394
|
|
|
|
2,126
|
|
|
|
2,983
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Financial income, net
|
|
|
489
|
|
|
|
190
|
|
|
|
839
|
|
|
|
477
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income before income tax
|
|
|
894
|
|
|
|
1,584
|
|
|
|
2,965
|
|
|
|
3,460
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income tax expenses
|
|
|
143
|
|
|
|
271
|
|
|
|
475
|
|
|
|
585
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income
|
|
|
751
|
|
|
|
1,313
|
|
|
|
2,490
|
|
|
|
2,875
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings per share:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic and diluted net profit per ordinary share
|
|
|
0.11
|
|
|
|
0.22
|
|
|
|
0.38
|
|
|
|
0.49
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average number of ordinary shares used to compute
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
basic net profit per ordinary share (in thousands)
|
|
|
6,706
|
|
|
|
5,908
|
|
|
|
6,541
|
|
|
|
5,879
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average number of ordinary shares used to compute
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
diluted net profit per ordinary share (in thousands)
|
|
|
6,764
|
|
|
|
5,943
|
|
|
|
6,628
|
|
|
|
5,897
|
|
|
Eltek Ltd.
|
|
Consolidated Balance Sheets
|
|
U.S dollars in thousands
|
| |
|
June 30,
|
|
|
December 31,
|
|
| |
|
2024
|
|
|
2023
|
|
| |
|
|
|
|
|
|
|
Assets
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
Current assets:
|
|
|
|
|
|
|
|
Cash and cash equivalents
|
|
|
8,877
|
|
|
|
9,278
|
|
|
Short-term bank deposits
|
|
|
9,396
|
|
|
|
2,862
|
|
|
Receivables: Trade, net of provision for doubtful accounts
|
|
|
9,948
|
|
|
|
10,898
|
|
|
Other
|
|
|
287
|
|
|
|
689
|
|
|
Inventories
|
|
|
6,440
|
|
|
|
6,135
|
|
|
Prepaid expenses
|
|
|
306
|
|
|
|
245
|
|
| |
|
|
|
|
|
|
|
|
|
Total current assets
|
|
|
35,254
|
|
|
|
30,107
|
|
| |
|
|
|
|
|
|
|
|
|
Long term assets:
|
|
|
|
|
|
|
|
|
|
Severance pay fund
|
|
|
55
|
|
|
|
57
|
|
|
Deferred tax asset, net
|
|
|
964
|
|
|
|
1,098
|
|
|
Operating lease right of use assets
|
|
|
5,965
|
|
|
|
6,555
|
|
|
Total long term assets
|
|
|
6,984
|
|
|
|
7,710
|
|
| |
|
|
|
|
|
|
|
|
|
Fixed assets, less accumulated depreciation
|
|
|
12,669
|
|
|
|
9,354
|
|
| |
|
|
|
|
|
|
|
|
|
Total Assets
|
|
|
54,907
|
|
|
|
47,171
|
|
| |
|
|
|
|
|
|
|
|
|
Liabilities and Shareholder's equity
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
Current liabilities:
|
|
|
|
|
|
|
|
|
|
Accounts payable: Trade
|
|
|
5,273
|
|
|
|
7,503
|
|
|
Other
|
|
|
5,214
|
|
|
|
5,689
|
|
|
Short-term operating lease liabilities
|
|
|
763
|
|
|
|
789
|
|
| |
|
|
|
|
|
|
|
|
|
Total current liabilities
|
|
|
11,250
|
|
|
|
13,981
|
|
| |
|
|
|
|
|
|
|
|
|
Long-term liabilities:
|
|
|
|
|
|
|
|
|
|
Employee severance benefits
|
|
|
399
|
|
|
|
447
|
|
|
Long-term operating lease liabilities
|
|
|
5,306
|
|
|
|
5,871
|
|
| |
|
|
|
|
|
|
|
|
|
Total long-term liabilities
|
|
|
5,705
|
|
|
|
6,318
|
|
| |
|
|
|
|
|
|
|
|
|
Shareholders' equity:
|
|
|
|
|
|
|
|
|
|
Ordinary shares of NIS 3.0 par value – Authorized: 10,000,000 shares at June 30, 2024 and December 31, 2023; Issued and outstanding: 6,708,522 shares at June 30, 2024 and
6,020,693 shares at December 31, 2023
|
|
|
6,006
|
|
|
|
5,443
|
|
|
Additional paid-in capital
|
|
|
32,597
|
|
|
|
23,587
|
|
|
Cumulative foreign currency translation adjustments
|
|
|
(486
|
)
|
|
|
783
|
|
|
Capital reserve
|
|
|
2,186
|
|
|
|
1,900
|
|
|
Accumulated deficit
|
|
|
(2,351
|
)
|
|
|
(4,841
|
)
|
|
Total shareholders' equity
|
|
|
37,952
|
|
|
|
26,872
|
|
|
Total liabilities and shareholders' equity
|
|
|
54,907
|
|
|
|
47,171
|
|
|
Eltek Ltd.
|
|
Unaudited Non-GAAP EBITDA Reconciliations
|
|
U.S dollars in thousands
|
| |
|
Three months ended
|
|
|
Six months ended
|
|
| |
|
June 30,
|
|
|
June 30,
|
|
| |
|
2024
|
|
|
2023
|
|
|
2024
|
|
|
2023
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP net income
|
|
|
751
|
|
|
|
1,313
|
|
|
|
2,490
|
|
|
|
2,875
|
|
|
Add back items:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Financial income, net
|
|
|
(489
|
)
|
|
|
(190
|
)
|
|
|
(839
|
)
|
|
|
(477
|
)
|
|
Income tax expenses
|
|
|
143
|
|
|
|
271
|
|
|
|
475
|
|
|
|
585
|
|
|
Depreciation and amortization
|
|
|
388
|
|
|
|
301
|
|
|
|
753
|
|
|
|
630
|
|
|
Non-GAAP EBITDA
|
|
|
793
|
|
|
|
1,695
|
|
|
|
2,879
|
|
|
|
3,613
|
|
|
Eltek Ltd.
|
|
Consolidated Statement of Cash flow
|
|
U.S dollars in thousands
|
| |
|
Three months ended
|
|
|
Six months ended
|
|
| |
|
June 30,
|
|
|
June 30,
|
|
| |
|
2024
|
|
|
2023
|
|
|
2024
|
|
|
2023
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash flows from operating activities:
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Income
|
|
|
751
|
|
|
|
1,313
|
|
|
|
2,490
|
|
|
|
2,875
|
|
|
Adjustments to reconcile net income to net cash flows
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
provided by operating activities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation and amortization
|
|
|
388
|
|
|
|
301
|
|
|
|
753
|
|
|
|
630
|
|
|
Accrued interest
|
|
|
(98
|
)
|
|
|
-
|
|
|
|
(186
|
)
|
|
|
-
|
|
|
Stock-based compensation
|
|
|
154
|
|
|
|
72
|
|
|
|
286
|
|
|
|
144
|
|
|
Decrease in deferred tax assets and long term tax receivable
|
|
|
(100
|
)
|
|
|
260
|
|
|
|
91
|
|
|
|
566
|
|
| |
|
|
344
|
|
|
|
633
|
|
|
|
944
|
|
|
|
1,340
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Decrease (increase) in operating lease right-of-use assets
|
|
|
2
|
|
|
|
11
|
|
|
|
3
|
|
|
|
(22
|
)
|
|
Decrease (increase) in trade receivables
|
|
|
(219
|
)
|
|
|
(1,896
|
)
|
|
|
517
|
|
|
|
(1,784
|
)
|
|
Decrease (increase) in other receivables and prepaid expenses
|
|
|
234
|
|
|
|
214
|
|
|
|
309
|
|
|
|
(311
|
)
|
|
Decrease (increase) in inventories
|
|
|
(169
|
)
|
|
|
(496
|
)
|
|
|
(565
|
)
|
|
|
(809
|
)
|
|
Increase (decrease) in trade payables
|
|
|
955
|
|
|
|
(307
|
)
|
|
|
(536
|
)
|
|
|
105
|
|
|
Increase (decrease) in other liabilities and accrued expenses
|
|
|
(48
|
)
|
|
|
629
|
|
|
|
(249
|
)
|
|
|
1,477
|
|
|
Increase (decrease) in employee severance benefits, net
|
|
|
(48
|
)
|
|
|
17
|
|
|
|
(30
|
)
|
|
|
22
|
|
| |
|
|
707
|
|
|
|
(1,828
|
)
|
|
|
(551
|
)
|
|
|
(1,322
|
)
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net cash provided by operating activities
|
|
|
1,802
|
|
|
|
118
|
|
|
|
2,883
|
|
|
|
2,893
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash flows from investing activities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Purchase of property and equipment
|
|
|
(3,215
|
)
|
|
|
(406
|
)
|
|
|
(5,947
|
)
|
|
|
(711
|
)
|
|
Insurance Proceeds
|
|
|
-
|
|
|
|
2,000
|
|
|
|
-
|
|
|
|
2,000
|
|
|
Investment in short-term bank deposits, net
|
|
|
(132
|
)
|
|
|
-
|
|
|
|
(6,534
|
)
|
|
|
-
|
|
|
Restricted deposits
|
|
|
-
|
|
|
|
192
|
|
|
|
-
|
|
|
|
192
|
|
|
Net cash provided by (used in) investing activities
|
|
|
(3,347
|
)
|
|
|
1,786
|
|
|
|
(12,481
|
)
|
|
|
1,481
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash flows from financing activities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Exercise of options
|
|
|
16
|
|
|
|
299
|
|
|
|
261
|
|
|
|
299
|
|
|
Repayment of long-term loans from bank
|
|
|
-
|
|
|
|
(1,768
|
)
|
|
|
-
|
|
|
|
(3,348
|
)
|
|
Issuance of shares, net
|
|
|
-
|
|
|
|
-
|
|
|
|
9,312
|
|
|
|
-
|
|
|
Net cash provided by (used in) financing activities
|
|
|
16
|
|
|
|
(1,469
|
)
|
|
|
9,573
|
|
|
|
(3,049
|
)
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Effect of translation adjustments
|
|
|
(204
|
)
|
|
|
(164
|
)
|
|
|
(376
|
)
|
|
|
(361
|
)
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net increase (decrease) in cash and cash equivalents
|
|
|
(1,733
|
)
|
|
|
271
|
|
|
|
(401
|
)
|
|
|
964
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash and cash equivalents at the beginning of the period
|
|
|
10,610
|
|
|
|
8,059
|
|
|
|
9,278
|
|
|
|
7,366
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash and cash equivalents at the end of the period
|
|
|
8,877
|
|
|
|
8,330
|
|
|
|
8,877
|
|
|
|
8,330
|
|