PETACH TIKVA, Israel, March 11,
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 full year and fourth
quarter ended December 31, 2024.
Full Year and Fourth Quarter 2024 Highlights
- Revenues: Revenues for 2024 were $46.5 million, a slight decline of $0.2 million compared to 2023.
- Profitability: Net income reached $4.2 million in 2024 compared to $6.4 million in 2023. EBITDA reached $5.9 million compared to $8.6 million in 2023.
- Earnings per share (EPS): Diluted EPS was $0.63 in 2024 compared to $1.07 in 2023.
- Q4 Highlights: Revenue for the fourth quarter amounted
to $10.8 million, compared to
$12.3 million in the corresponding
period of the previous year. Net income for the quarter was
$0 million, while EBITDA totaled
$0.7 million.
Transition Period and Future Growth Outlook:
Eltek is currently undergoing a strategic transition, expected
to continue through the mid of 2026. This process was
initiated with the launch of an accelerated $15 million investment plan, while the company's
annual revenues ranged below $40
million. The primary objective of this initiative was to
establish advanced manufacturing capabilities, enhance
technological proficiency, and expand annual production capacity to
a range of $55 million to
$65 million.
The investment plan includes the installation of equipment and
production lines, while maintaining ongoing production. Conducting
these enhancements within the existing facility has introduced
spatial constraints, and logistical complexities, leading to
temporary disruptions and inefficiencies which impacted the
fourth quarter of 2024. In addition to this plan Eltek is
implementing infrastructure upgrades to support the forecasted
capacity and beyond.
Eltek remains fully committed to its strategic growth objectives
and anticipates improved operational performance as the investment
program progresses.
Market Trends and Outlook:
The global PCB industry, particularly in high-end applications
such as Defense, Aerospace, Medical, and high-tech industrial
markets, continues to experience dynamic shifts driven by
geopolitical and economic factors. The ongoing trade tensions
between the United States and
China have led to supply chain
realignments, as companies seek to reduce dependency on Chinese
manufacturing. The US administration's new customs regulations and
tariffs on Chinese electronic components have further accelerated
the trend of reshoring production to North America and US allied countries,
creating opportunities for manufacturers with relevant
capabilities.
Additionally, the continued geopolitical instability in
Eastern Europe due to the
Russia-Ukraine conflict and ongoing tensions in the
Middle East have heightened demand
for defense-related PCBs. Governments worldwide are increasing
defense budgets, driving the need for high-reliability PCBs used in
advanced military equipment, aerospace systems, and secure
communication infrastructure.
Eltek is strategically positioned to leverage these industry
trends by enhancing its manufacturing capabilities and
strengthening its supply chain resilience. With its continued
investments in cutting-edge technology and production efficiency,
Eltek remains committed to meeting the growing needs of its
defense, medical, and industrial customers while capitalizing on
market opportunities arising from global economic shifts.
Management Statement:
Eli Yaffe, CEO of Eltek, stated,
"We continue to witness sustained demand, reflected by the tenders
issued in recent months for significant quantities of PCBs. We
expect these tenders to have a positive long-term impact on the
company. Our strategic investments in advanced manufacturing
capabilities are aimed at driving operational efficiency and
innovation, increasing our capacity and strengthening our ability
to serve our customers. While these investments, along with ongoing
facility expansion, may introduce some short-term fluctuations in
profitability, we remain confident in their long-term value. We
anticipate that the benefits of these initiatives will become
increasingly evident in the coming quarters."
2024 Full Year GAAP Financial Results
Revenues for 2024 were $46.5
million compared to $46.7
million in 2023.
Gross profit for 2024 was $10.3
million (22% of revenues) compared to $13.1 million (28% of revenues) in 2023.
Operating profit for 2024 was $4.4
million compared to operating profit of $7.3 million in 2023.
Financial income for 2024 was $0.7
million compared to financial income of $0.4 million in 2023.
Net profit for 2024 was $4.2
million or $0.63 per fully
diluted share compared to net profit of $6.4
million or $1.07 per fully
diluted share in 2023.
2024 Full Year Non-GAAP Financial Results
EBITDA for 2024 was a $5.9 million
(13% of revenues) compared to EBITDA of $8.6
million (18% of revenues) in 2023.
Fourth Quarter 2024 GAAP Financial Results
Revenues for the fourth quarter of 2024 were $10.8 million compared to $12.3 million in the fourth quarter of 2023.
Gross profit for the fourth quarter of 2024 was $1.9 million (18% of revenues) compared to
$3.5 million (28% of revenues) in the
fourth quarter of 2023.
Operating profit for the fourth quarter of 2024 was
$0.4 million compared to operating
profit of $2.0 million in the fourth
quarter of 2023.
Financial expenses for the fourth quarter of 2024 were
$0.3 million, the same as in the
fourth quarter of 2023. The financial expenses in the fourth
quarter of 2024, derive primarily from the erosion of the US Dollar
against the NIS during the quarter.
Net profit for the fourth quarter of 2024 was $0 million compared to net profit of $1.3 million or $0.22 per fully diluted share in the fourth
quarter of 2023.
Fourth Quarter 2024 Non-GAAP Financial Results
EBITDA for the fourth quarter of 2024 was $0.8 million (7% of revenues) compared to EBITDA
of $2.4 million (19% of revenues) in
the fourth quarter 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 a table below.
Conference Call
Today, Tuesday, March 11, 2025, at
9:30am Eastern Time (15:30pm 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 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 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 Freund
Chief Financial Officer
Investor-Contact@nisteceltek.com
+972-3-939-5023
|
Eltek
Ltd.
|
|
Consolidated
Statements of Income
|
|
(In thousands US$,
except per share data)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months
ended
|
|
Twelve months
ended
|
|
|
December
31,
|
|
December
31,
|
|
|
2024
|
|
2023
|
|
2024
|
|
2023
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenues
|
|
10,758
|
|
12,321
|
|
46,527
|
|
46,695
|
|
Costs of
revenues
|
|
(8,824)
|
|
(8,865)
|
|
(36,188)
|
|
(33,593)
|
|
|
|
|
|
|
|
|
|
|
Gross
profit
|
|
1,934
|
|
3,456
|
|
10,339
|
|
13,102
|
|
|
|
|
|
|
|
|
|
|
Research and
development expenses, net
|
|
(108)
|
|
(49)
|
|
(187)
|
|
(85)
|
|
Selling, general and
administrative expenses
|
|
(1,468)
|
|
(1,405)
|
|
(5,760)
|
|
(5,722)
|
|
|
|
|
|
|
|
|
|
|
Operating
profit
|
|
358
|
|
2,002
|
|
4,392
|
|
7,295
|
|
|
|
|
|
|
|
|
|
|
Financial income
(expenses), net
|
|
(271)
|
|
(334)
|
|
705
|
|
422
|
|
|
|
|
|
|
|
|
|
|
Income before income
taxes
|
|
87
|
|
1,668
|
|
5,097
|
|
7,717
|
|
|
|
|
|
|
|
|
|
|
Income tax
expenses
|
|
64
|
|
337
|
|
873
|
|
1,364
|
|
|
|
|
|
|
|
|
|
|
Net
income
|
|
23
|
|
1,331
|
|
4,224
|
|
6,353
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings per
share:
|
|
|
|
|
|
|
|
|
|
Basic net income per
ordinary share
|
|
-
|
|
0.22
|
|
0.64
|
|
1.08
|
|
|
|
|
|
|
|
|
|
|
Diluted net income per
ordinary share
|
|
-
|
|
0.22
|
|
0.63
|
|
1.07
|
|
|
|
|
|
|
|
|
|
|
Weighted average number
of ordinary shares used to compute
|
|
|
|
|
|
|
|
|
|
basic net income per
ordinary share (in thousands)
|
|
6,713
|
|
5,977
|
|
6,626
|
|
5,902
|
|
|
|
|
|
|
|
|
|
|
Weighted average number
of ordinary shares used to compute
|
|
|
|
|
|
|
|
|
|
diluted net income per
ordinary share (in thousands)
|
|
6,782
|
|
6,074
|
|
6,701
|
|
5,956
|
|
|
|
|
|
|
|
|
|
|
Eltek
Ltd.
|
|
Consolidated Balance
Sheets
|
|
(In thousands
US$)
|
|
|
|
|
|
|
|
|
|
|
|
|
December
31,
|
|
December
31,
|
|
|
2024
|
|
2023
|
|
|
|
|
Assets
|
|
|
|
|
|
|
|
|
|
|
Current
assets:
|
|
|
|
|
|
Cash and cash
equivalents
|
|
7,575
|
|
9,278
|
|
Short-term bank
deposits
|
|
9,663
|
|
2,862
|
|
Trade receivables (net
of allowance for credit losses)
|
|
11,786
|
|
10,898
|
|
Inventories
|
|
9,488
|
|
6,135
|
|
Other accounts
receivable and prepaid expenses
|
|
602
|
|
934
|
|
|
|
|
|
|
Total current
assets
|
|
39,114
|
|
30,107
|
|
|
|
|
|
|
Long term
assets:
|
|
|
|
|
|
Severance pay
fund
|
|
56
|
|
57
|
|
Deferred tax assets,
net
|
|
496
|
|
1,098
|
|
Operating lease
right-of-use assets
|
|
5,911
|
|
6,555
|
|
Total long term
assets
|
|
6,463
|
|
7,710
|
|
|
|
|
|
|
Property and
equipment, net
|
|
14,578
|
|
9,354
|
|
|
|
|
|
|
Total
Assets
|
|
60,155
|
|
47,171
|
|
|
|
|
|
|
Liabilities and
Shareholder's equity
|
|
|
|
|
|
|
|
|
|
|
Current
liabilities:
|
|
|
|
|
|
Trade
payables
|
|
7,367
|
|
7,503
|
|
Other accounts payable
and accrued expenses
|
|
5,136
|
|
5,689
|
|
Short-term operating
lease liabilities
|
|
827
|
|
789
|
|
|
|
|
|
|
Total current
liabilities
|
|
13,330
|
|
13,981
|
|
|
|
|
|
|
Long-term
liabilities:
|
|
|
|
|
|
Accrued severance
pay
|
|
443
|
|
447
|
|
Long-term operating
lease liabilities
|
|
5,190
|
|
5,871
|
|
|
|
|
|
|
Total long-term
liabilities
|
|
5,633
|
|
6,318
|
|
|
|
|
|
|
Shareholders'
equity:
|
|
|
|
|
|
Ordinary shares, NIS
3.0 par value authorized 10,000,000 shares, issued
and outstanding 6,714,040 at December 31, 2024 and 6,020,693 at
December 31, 2023
|
|
6,011
|
|
5,443
|
|
Additional paid-in
capital
|
|
32,627
|
|
23,587
|
|
Foreign currency
translation adjustments
|
|
664
|
|
783
|
|
Capital
reserves
|
|
2,507
|
|
1,900
|
|
Accumulated
deficit
|
|
(617)
|
|
(4,841)
|
|
Total shareholders'
equity
|
|
41,192
|
|
26,872
|
|
Total liabilities
and shareholders' equity
|
|
60,155
|
|
47,171
|
|
|
|
|
|
|
|
|
|
|
|
Eltek
Ltd.
|
|
Unaudited Non-GAAP
EBITDA Reconciliation
|
|
(In thousands
US$)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months
ended
|
|
Twelve months
ended
|
|
|
|
December
31,
|
|
December
31,
|
|
|
|
2024
|
|
2023
|
|
2024
|
|
2023
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP Net
Income
|
|
23
|
|
1,331
|
|
4,224
|
|
6,353
|
|
|
Add back
items:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Financial expenses
(income), net
|
|
271
|
|
334
|
|
(705)
|
|
(422)
|
|
|
Income tax
expenses
|
|
64
|
|
337
|
|
873
|
|
1,364
|
|
|
Depreciation and
amortization
|
|
405
|
|
388
|
|
1,546
|
|
1,317
|
|
|
Non-GAAP
EBITDA
|
|
763
|
|
2,390
|
|
5,938
|
|
8,612
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Eltek
Ltd.
|
|
Consolidated
Statements of Cash Flows
|
|
(In thousands
US$)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months
ended
|
|
Twelve months
ended
|
|
|
|
|
December
31,
|
|
December
31,
|
|
|
|
|
2024
|
|
2023
|
|
2024
|
|
2023
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash flows from
operating activities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Income
|
|
23
|
|
1,331
|
|
4,224
|
|
6,353
|
|
|
|
Adjustments to
reconcile net income to net cash flows
|
|
|
|
|
|
|
|
|
|
|
|
provided by operating
activities:
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation
|
|
405
|
|
388
|
|
1,546
|
|
1,317
|
|
|
|
Accrued interest,
net
|
|
(392)
|
|
-
|
|
(463)
|
|
-
|
|
|
|
Share-based
compensation
|
|
161
|
|
147
|
|
607
|
|
363
|
|
|
|
Decrease in deferred
tax assets
|
|
217
|
|
304
|
|
621
|
|
1,302
|
|
|
|
|
391
|
|
839
|
|
2,311
|
|
2,982
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Decrease (increase) in
operating lease right-of-use assets, net
|
|
(2)
|
|
(1)
|
|
2
|
|
(23)
|
|
|
|
Decrease (increase) in
trade receivables
|
|
1,230
|
|
(211)
|
|
(988)
|
|
(1,010)
|
|
|
|
Decrease (increase) in
other receivables and prepaid expenses
|
|
(260)
|
|
55
|
|
341
|
|
(169)
|
|
|
|
Decrease (increase) in
inventories
|
|
(2,711)
|
|
(283)
|
|
(3,532)
|
|
(1,139)
|
|
|
|
Increase (decrease) in
trade payables
|
|
378
|
|
958
|
|
929
|
|
989
|
|
|
|
Increase (decrease) in
other liabilities and accrued expenses
|
|
966
|
|
(507)
|
|
1,255
|
|
707
|
|
|
|
Increase
(decrease) in employee severance benefits, net
|
|
(4)
|
|
139
|
|
(2)
|
|
172
|
|
|
|
|
(403)
|
|
150
|
|
(1,995)
|
|
(473)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net cash provided by
operating activities
|
|
11
|
|
2,320
|
|
4,540
|
|
8,862
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash flows from
investing activities:
|
|
|
|
|
|
|
|
|
|
|
|
Purchase of fixed
assets
|
|
(1,592)
|
|
(1,246)
|
|
(9,506)
|
|
(2,432)
|
|
|
|
Insurance
Proceeds
|
|
-
|
|
-
|
|
-
|
|
2,000
|
|
|
|
proceeds from
(Investment in) short-term bank deposits, net
|
|
303
|
|
(2,719)
|
|
(6,365)
|
|
(2,719)
|
|
|
|
Restricted
deposits
|
|
-
|
|
-
|
|
-
|
|
192
|
|
|
|
Net cash used in
investing activities
|
|
(1,289)
|
|
(3,965)
|
|
(15,871)
|
|
(2,959)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash flows from
financing activities:
|
|
|
|
|
|
|
|
|
|
|
|
Exercise of
options
|
|
18
|
|
535
|
|
296
|
|
863
|
|
|
|
Dividend
distribution
|
|
-
|
|
(1,321)
|
|
-
|
|
(1,321)
|
|
|
|
Issuance of shares,
net
|
|
-
|
|
-
|
|
9,312
|
|
|
|
|
|
Repayment of long-term
loans from bank
|
|
-
|
|
-
|
|
-
|
|
(3,348)
|
|
|
|
Net cash used in
financing activities
|
|
18
|
|
(786)
|
|
9,608
|
|
(3,806)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Effect of translation
adjustments
|
|
287
|
|
404
|
|
20
|
|
(185)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net increase (decrease)
in cash and cash equivalents
|
|
(973)
|
|
(2,027)
|
|
(1,703)
|
|
1,912
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash and cash
equivalents at the beginning of the period
|
|
8,548
|
|
11,305
|
|
9,278
|
|
7,366
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash and cash
equivalents at the end of the period
|
|
7,575
|
|
9,278
|
|
7,575
|
|
9,278
|
|
|
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content:https://www.prnewswire.com/news-releases/eltek-ltd-reports-full-year-and-fourth-quarter-2024-financial-results-302398218.html
SOURCE Eltek Ltd.
