– Revenues of $7.2 million in the first quarter of 2021 compared to $9.2 million in the first quarter of 2020
– Gross profit of $1.1 million in the first quarter of 2021 compared to $1.8 million in the first quarter of 2020
– Net profit of $223,000 in the first quarter of 2021 compared to net profit of $541,000 in the first quarter of 2020
– Achieved positive cash flow provided by operating activities of $2.5 million during the first quarter of 2021
– Cash and cash equivalents as of March 31, 2021 were $6.4 million
PR Newswire
PETACH-TIKVA,
Israel
,
May 20, 2021
/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, 2021
.
“Despite the global challenges we encountered related to both the Covid-19 pandemic and the shortage of key raw materials, we were able to respond quickly, maintain operational efficiency and remain profitable in the first quarter
,
” said
Eli Yaffe
, Chief Executive Officer of Eltek. “We expect that revenues will rebound during the rest of the year and lost sales will be recovered upon the expected availability of key raw material (Pyralux AP) which was in short supply and with the authorization of the use of alternative raw materials by our customers,” added Mr. Yaffe. “The approval process with our customers for the use of the alternative raw materials is proceeding as planned and, is reducing our production costs. In addition, we are exploring ways to strengthen our position in the multi-billion dollar PCB market in
North America
, and can serve as a rapid growth engine for Eltek,” further explained Mr. Yaffe.
“We are operating in a challenging business environment and making the necessary adjustments to increase revenues, expand our operating efficiencies, improve customer satisfaction and maintain sustained profitability. We plan to strengthen our sales activities and continue our investments in new equipment to expand our manufacturing facilities and infrastructure during the remainder of the year as part of our strategic growth plan. Our board of directors approved our obtaining a loan of
NIS 10 million
(approximately
$3.1 million
) from Bank Leumi B.M. The loan has a term of ten years, with favorable terms, including a repayment schedule that starts after a 12 month grace period and carried interest of Prime + 1.50%, which is waived for the first year of the loan
,
” concluded Mr. Yaffe.
Highlights of the First Quarter of 2021 compared to the First Quarter of 2020
-
Revenues
were
$7.2 million
in the first quarter of 2021 compared to revenues of
$9.2 million
in the first quarter of 2020; -
Gross profit
was
$1.1 million
(15.9% of revenues) in the first quarter of 2021 compared to
$1.8
(19.7% of revenues) in the first quarter of 2020; -
Operating profit
was
$136,000
in the first quarter of 2021 compared to operating profit of
$612,000
in the first quarter of 2020; -
Net profit
was
$223,000
or
$0.04
per fully diluted share for the first quarter of 2021 compared to net profit of
$541,000
or
$0.12
per fully diluted share in the first quarter of 2020; -
EBITDA
was a
$577,000
(8.0% of revenues) in the first quarter of 2021 compared to EBITDA of
$1.0 million
(11.0% of revenues) in the first quarter of 2020; -
Net cash provided by operating activities
amounted to
$2.5 million
in the first quarter of 2021 compared to net cash provided by operating activities of
$1.5 million
in the first quarter of 2020; and -
Cash and cash equivalents
as of
March 31, 2021
were
$6.4 million
compared to
$4.7 million
as of
December 31, 2020
.
Conference Call
Today,
Thursday, May 20, 2021
, at
8:30am Eastern Time
, Eltek will conduct a conference call to discuss the results. The call will feature remarks by
Eli Yaffe
, Chief Executive Officer and
Alon Mualem
, Chief Financial Officer.
To participate, please call the following teleconference numbers. Please allow for additional time to connect prior to the call:
United States
: 1-888-723-3164
Israel: 03-918-0691
International: +972-3-918-0691
at:
8:30am Eastern Time
5:30am Pacific Time
15:30pm
Israel Time
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 is a global manufacturer and supplier of technologically advanced solutions in the field of printed circuit boards (PCBs) and is the leading Israeli company in this industry. PCBs are the core circuitry of most electronic devices for which 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 subsidiaries in
North America
and by agents and distributors in
Europe
,
India
and
South America
.
For more information, visit Eltek’s web site at
www.nisteceltek.com
.
Use of 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.
Forward Looking Statement
Certain matters discussed in this news release are forward-looking statements that involve a number of risks and uncertainties including, but not limited to statements regarding expected results in future quarters, the impact of COVID-19 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, shortage of raw materials, 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.
Investor Contact
Alon Mualem
Chief Financial Officer
[email protected]
+972-3-939-5023
(Tables follow)
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View original content:
http://www.prnewswire.com/news-releases/eltek-reports-2021-first-quarter-financial-results-301295749.html
SOURCE Eltek Ltd.
