• 
  Revenues of $
  
  
  9.8
  
  
  million in the
  
  
  first
  
  
  quarter of 202
  
  
  2
  
  
  compared to
  
  
  $
  
  
  7.2
  
  
  million in the
  
  
  first
  
  
  quarter of
  
  
  2021
  
• 
  Gross profit of
  
  $2.0 million
  
  
  
  in the
  
  
  first
  
  
  quarter of 202
  
  
  2
  
  
  compared to
  
  
  
  $1
  
  .
  
  
  1
  
  
  million in the
  
  
  first
  
  
  quarter of
  
  
  2021
  
• 
  Profit before income tax of
  
  $0.8 million
  
  in the
  
  
  first
  
  
  quarter of 2022 compared to
  
  $0.2 million
  
  
  
  in the first
  
  
  quarter of
  
  
  2021
  
• 
  Net
  
  
  profit
  
  
  of $
  
  
  0.
  
  
  6
  
  
  million
  
  
  in the
  
  
  first
  
  
  quarter of 2022 compared to
  
  
  net profit of
  
  
  $
  
  
  0.2 million
  
  
  in the
  
  
  first
  
  
  quarter of
  
  
  2021
  
• 
  Net
  
  
  cash provided by operating activities of
  
  $0.3 million
  
  during the first quarter of 2022
  
• 
  Cash and cash equivalents
  
  
  as of
  
  March 31, 2022
  
  were
  
  $9.1 million
  
  

PETACH TIKVA,

Israel


,


May 18, 2022


/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, 2022

.

“The world’s exit from the Covid-19 crisis, the increased demand for defense products and the continuation of the trend of shifting back high end PCB production to Western countries continue to have a positive impact on our Company’s results of operations. The Company’s backlog as of

March 31, 2022

increased by 50% compared to the beginning of the year. Eltek is a key supplier to several major defense contractors and its revenues and backlog are influenced directly from the increased demand of their customers”, said

Eli Yaffe

, Chief Executive Officer of Eltek. “During the first quarter of 2022, we began our accelerated investment program at the Company’s plant in Petach Tikva in order to cope with the increase in demand we forecast and the need for higher efficiency. The first phase of the plan includes investments in production lines and infrastructure amounting to

$9 million

. The total cost of our accelerated investment plan is expected to be

$15 million

. We are also continuing our efforts to increase our skilled workforce in order to expand our production capacity”, concluded Mr. Yaffe.

Highlights of the First Quarter of 2022 compared to the First Quarter of 2021

• 
  Revenues
  
  were
  
  $9.8 million
  
  in the first quarter of 2022 compared to revenues of
  
  $7.2 million
  
  in the first quarter of 2021;

• 
  Gross profit
  
  was
  
  $2.0 million
  
  (20.1% of revenues) in the first quarter of 2022 compared to
  
  $1.1
  
  (15.9% of revenues) in the first quarter of 2021;

• 
  Operating profit
  
  was
  
  $0.7 million
  
  in the first quarter of 2022 compared to operating profit of
  
  $0.1 million
  
  in the first quarter of 2021;

• 
  Profit before income tax
  
  was
  
  $0.8 million
  
  in the first quarter of 2022 compared to
  
  $0.2 million
  
  in the first quarter of 2021;

• 
  Net profit
  
  was
  
  $0.6 million
  
  or
  
  $0.11
  
  per fully diluted share for the first quarter of 2022 compared to net profit of
  
  $0.2 million
  
  or
  
  $0.04
  
  per fully diluted share in the first quarter of 2021;

• 
  EBITDA
  
  was a
  
  $1.1 million
  
  (11% of revenues) in the first quarter of 2022 compared to EBITDA of
  
  $0.6 million
  
  (8% of revenues) in the first quarter of 2021;

• 
  Net cash provided by operating activities
  
  amounted to
  
  $0.3 million
  
  in the first quarter of 2022 compared to net cash provided by operating activities of
  
  $2.5 million
  
  in the first quarter of 2021;

• 
  Cash and cash equivalents
  
  as of
  
  March 31, 2022
  
  were
  
  $9.1 million
  
  compared to
  
  $9.3 million
  
  as of
  
  December 31, 2021
  
  .

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.

Conference Call

Today,

Wednesday, May 18, 2022

, 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

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

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

Home

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 the Israeli leader 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



[email protected]



+972-3-939-5023

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SOURCE Eltek Ltd.