Latest news with #EltekLtd
Yahoo
21-05-2025
- Business
- Yahoo
Eltek Ltd (ELTK) Q1 2025 Earnings Call Highlights: Revenue Growth Amid Operational Challenges
Release Date: May 20, 2025 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Eltek Ltd (NASDAQ:ELTK) reported an increase in revenues for Q1 2025, totaling $12.8 million compared to $11.8 million in Q1 2024. Production efficiency has improved since the beginning of May, with operations stabilizing after initial challenges with new equipment. The company is on track to complete its accelerated investment plan by mid-2026, despite a two-month delay in equipment delivery. Eltek Ltd (NASDAQ:ELTK) is actively working to diversify its supply chain in the Far East to expand commercial activities and leverage technological know-how. The company has initiated a company-wide IT transformation to optimize internal workflows and improve operational efficiency. Gross profit decreased to $2.2 million from $3.3 million in Q1 2024, primarily due to higher labor costs and lower yields. Operating profit for the quarter was $0.7 million, down from $1.7 million in the same period last year. Net income for Q1 2025 was $1 million or $0.15 per share, compared to $1.7 million or $0.27 per share in Q1 2024. The Israeli labor market remains challenging, making it difficult to attract qualified candidates for production and engineering roles. There is uncertainty regarding the tariff rates that may apply to products originating from Israel under the new US tariff policy, which could impact cost structures. Warning! GuruFocus has detected 2 Warning Signs with ELTK. Q: Regarding the new line expected to be completed by mid-2026, will it impact the company's profitability, or will profitability return to 2023 levels once the current implementation is finished? A: The new line, once fully operational in mid-2026, is expected to positively impact profitability by significantly increasing production. The marginal contribution from additional sales will directly benefit the bottom line. The new line will not interfere with current production, allowing for a return to previous profitability levels without disruption. Q: You mentioned operational difficulties in Q1 due to personnel not traveling to Israel. How do you see sales picking up once these issues are resolved? A: The operational difficulties in Q1 affected our gross margin due to reduced yield. However, we have overcome these issues with local engineers and support. The main production line, which is crucial, will have personnel arriving from the Republic of Czechoslovakia, ensuring progress. We expect the first plating line to be installed by the end of 2025, increasing capacity and efficiency. Q: How many existing lines do you have, and what impact will the new lines have on operations? A: Currently, we have two very old plating lines. We are building a new area for two new lines, with the first arriving by August 2025 and the second in the first half of 2026. These new lines will significantly increase capacity, quality, and efficiency, allowing us to upgrade to new technologies. Q: Will the new lines only improve operational efficiency, or will they also increase revenues? A: The new lines will significantly increase capacity, improve quality and efficiency, and allow us to adopt new technologies. This will provide momentum for revenue growth as we meet increased demand with higher-quality products. Q: Do you see demand supporting the increased capacity from the new lines? A: Yes, we see strong demand that will support the increased capacity provided by the new lines. For the complete transcript of the earnings call, please refer to the full earnings call transcript. This article first appeared on GuruFocus. Sign in to access your portfolio
Yahoo
20-05-2025
- Business
- Yahoo
Eltek Ltd. Reports 2025 First Quarter Financial Results
PETACH TIKVA, Israel, May 20, 2025 /PRNewswire/ -- 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 March 31, 2025. First Quarter 2025 Highlights Revenues were $12.8 million Operating profit was $0.7 million Net income was $1.0 million or $0.15 per fully diluted share Net cash provided by operating activities amounted to $0.1 million. "We ended the first quarter of 2025 with revenues of $12.8 million, an increase of approximately 8% compared to Q1 2024, and 18.5% higher than Q4 2024. Net income totalled $1.0 million. Our gross margin was impacted, compared to Q1 2024, due to increased labor costs and the ramp-up of new production equipment, which temporarily led to lower yields," said Eli Yaffe, CEO of Eltek. "Looking ahead to the remainder of the year, we continue to advance our investment program as planned. Our forecast that we will complete the accelerated investment plan by mid-2026 remains unchanged. We are undertaking all necessary preparations to ensure the swift and efficient integration of the new lines, with the goal of bringing them into full production," continued Mr. Yaffe. "On the revenue side, we continue to experience strong demand for the Company's products, and we are seeing lead times increase across all our relevant market sectors. As previously communicated, we are actively working to expand the scope of our commercial sales—an effort that we anticipate will bear fruit during the rest of 2025 and in the years to follow," concluded Mr. Yaffe. First Quarter 2025 GAAP Financial Results Revenues for the first quarter of 2025 were $12.8 million, compared to $11.8 million in the first quarter of 2024. Gross profit for the first quarter of 2025 was $2.2 million (17% of revenues) compared to $3.3 (28% of revenues) in the first quarter of 2024. Operating profit for the first quarter of 2025 was $0.7 million compared to operating profit of $1.7 million in the first quarter of 2024. Net income for the first quarter of 2025 was $1.0 million or $0.15 per fully diluted share compared to net income of $1.7 million or $0.27 per fully diluted share in the first quarter of 2024. Cash and short-term bank deposits amounted to $15.7 million as of March 31, 2025, with no outstanding debt. First Quarter 2025 Non-GAAP Financial Results EBITDA for the first quarter of 2025 was $1.2 million (9% of revenues) compared to EBITDA of $2.1 million (18% of revenues) in the first quarter of 2024. Conference Call Today, Tuesday, May 20, 2025, at 8:30am Eastern Time (15:30pm Israel Time, 5:30am 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: 1-866-860-9642Israel: 03-918-0691International: +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 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 Forward Looking Statements 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. About our Non-GAAP Financial Information The Company reports financial results in accordance with U.S. GAAP and herein provides EBITDA, a non-GAAP measure. This non-GAAP measure is not in accordance with, nor is it a substitute for, GAAP measures. This non-GAAP measure is intended to supplement the Company's presentation of its financial results that are prepared in accordance with GAAP. The Company uses the non-GAAP measure 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 a table below. Investor Contact Ron FreundChief Financial OfficerInvestor-Contact@ Eltek Ltd. Consolidated Statements of Income U.S. dollars in thousands (except per share data) Three months ended March 31,20252024Revenues12,75611,783Costs of revenues(10,544)(8,531)Gross profit2,2123,252Research and development, expenses, net(50)(15)Selling, general and administrative expenses(1,437)(1,516)Operating income7251,721Financial income, net504350Income before income taxes1,2292,071Income tax expenses227332Net Income 1,0021,739Earnings per share:Basic net income per ordinary share0.150.27Diluted net income per ordinary share0.150.27Weighted average number of ordinary shares used to computebasic net income per ordinary share (in thousands)6,7146,376Weighted average number of ordinary shares used to computediluted net income per ordinary share (in thousands)6,7856,491 Eltek Ltd. Consolidated Balance Sheets U.S. dollars in thousands March 31, December 31, 20252024AssetsCurrent assets:Cash and cash equivalents6,4667,575Short-term bank deposits9,2579,663Trade receivables (net of allowance for credit losses)12,28411,786Inventories 9,9789,488Other accounts receivable and prepaid expenses726602Total current assets38,71139,114Long term assets:Severance pay fund5556Deferred tax assets, net322496Operating lease right of use assets5,9885,911Total long term assets6,3656,463Property and equipment, net15,99914,578Total Assets61,07560,155Liabilities and Shareholder's equityCurrent liabilities:Trade payables7,6157,367Other accounts payable and accrued expenses5,3895,136Short-term operating lease liabilities936827Total current liabilities13,94013,330Long-term liabilities:Accrued severance pay450443Long-term operating lease liabilities5,1575,190Total long-term liabilities5,6075,633Shareholders' equity:Ordinary shares, NIS 3.0 par value authorized 10,000,000 shares, issued and outstanding 6,714,040 at March 31, 2025 and 6,714,040 at December 31, 20246,0116,011Additional paid-in capital32,62732,627Foreign currency translation adjustments(140)664Capital reserve2,6452,507Retained earnings (accumulated deficit)385(617)Total shareholders' equity41,52841,192Total liabilities and shareholders' equity61,07560,155 Eltek Ltd. Unaudited Non-GAAP EBITDA Reconciliations U.S. dollars in thousandsThree months ended March 31, 20252024 GAAP net Income 1,0021,739 Add back items:Financial income, net (504)(350) Income tax expenses227332 Depreciation and amortization465365 Non-GAAP EBITDA1,1902,086 Eltek Ltd. Consolidated Statements of Cash Flows U.S. dollars in thousands Three months ended March 31,20252024Cash flows from operating activities:Net Income1,0021,739Adjustments to reconcile net income to net cash flowsprovided by operating activities:Depreciation465365Accrued interest, net(128)-Share-based compensation138132Decrease in deferred tax assets 82322557819Decrease (increase) in operating lease right-of-use assets11Decrease (increase) in trade receivables(355)736Decrease (increase) in other receivables and prepaid expenses(67)75Decrease (increase) in inventories(330)(396)Increase (decrease) in trade payables(862)(1,491)Increase (decrease) in other liabilities and accrued expenses173(201)Increase (decrease) in employee severance benefits, net718(1,433)(1,258)Net cash provided by operating activities1261,300Cash flows from investing activities:Purchase of fixed assets(1,137)(2,731)Withdrawal of (investment in) short-term bank deposits, net534(6,490)Net cash used in investing activities(603)(9,221)Cash flows from financing activities:Exercise of options-246Repayment of long-term loans from bank--Issuance of shares, net-9,180Net cash provided by (used in) financing activities-9,426Effect of translation adjustments(632)(173)Net increase (decrease) in cash and cash equivalents(1,109)1,332Cash and cash equivalents at the beginning of the period7,5759,278Cash and cash equivalents at the end of the period6,46610,610 Logo - View original content: SOURCE Eltek Ltd.
Yahoo
12-05-2025
- Business
- Yahoo
Eltek Sets Earnings Release Date and Conference Call to Report First Quarter 2025 Results on May 20, 2025
PETACH-TIKVA, Israel, May 12, 2025 /PRNewswire/ -- Eltek Ltd. (NASDAQ: ELTK), a global manufacturer and supplier of technologically advanced solutions in the field of printed circuit boards, announced today that it will release its financial results for the first quarter of 2025 before the market opens on Tuesday, May 20, 2025. Eltek's financial results will be released over the news wires and will be posted on its corporate website at: On Tuesday, May 20, 2025, at 8:30 a.m. Eastern 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- 9180691 International: +972-3-9180691 At: 8:30 a.m. Eastern Time 5:30 a.m. Pacific Time 15:30 p.m. Israel Time A replay of the call will be available through the Investor Info section on Eltek's corporate website at approximately 24 hours after the conference call is completed and will be archived for 30 days. 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 Investor Contact Ron FreundChief Financial OfficerInvestor-Contact@ Logo: View original content: SOURCE Eltek Ltd.
Yahoo
08-04-2025
- Business
- Yahoo
Eltek Announces Filing of 2024 Annual Report
PETACH-TIKVA, Israel, April 8, 2025 /PRNewswire/ -- Eltek Ltd. (NASDAQ: ELTK), a global manufacturer and supplier of technologically advanced solutions in the field of printed circuit boards, announced today that it filed its annual report, containing audited consolidated financial statements for the year ended December 31, 2024, with the U.S. Securities and Exchange Commission. The annual report is available on the Company's website at Shareholders may receive a hard copy of the annual report free of charge upon request. 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 Investor Contact Ron FreundChief Financial OfficerInvestor-Contact@ Logo: View original content: SOURCE Eltek Ltd. Sign in to access your portfolio
Yahoo
08-04-2025
- Business
- Yahoo
Eltek Declares a Cash Dividend of $0.19 per Share
PETACH-TIKVA, Israel, April 8, 2025 /PRNewswire/ -- Eltek Ltd. (NASDAQ: ELTK), a global manufacturer and supplier of technologically advanced solutions in the field of printed circuit boards, announced today that its Board of Directors has declared a cash dividend in the amount of US$0.19 per share and approximately US$1.3 million in the aggregate. The dividend is payable on April 29, 2025, in US dollars, to all of the Company's shareholders of record as of April 22, 2025. The dividend is subject to a withholding tax at the rate of 25%. "Eltek's Board of Directors has approved a dividend payment that exceeds the Company's dividend policy, reflecting our deep appreciation for the continued trust and support of our shareholders. This decision underscores our strong financial position and confidence in the Company's future growth. This special measure aligns with our dedication to delivering long-term value while maintaining a solid financial foundation for future opportunities," said Yitzhak Nissan, Chairman of the Board Directors of Eltek. 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 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 Israel's continuing war against Hamas and Hezbollah, 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 FreundChief Financial OfficerInvestor-Contact@ Logo: View original content: SOURCE Eltek Ltd. Sign in to access your portfolio
