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6-K 1 zk2432352.htm 6-K

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 November 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 November 19, 2024 Eltek issued a press release reporting third 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:  November 19, 2024
EX-99.1 2 exhibit_99-1.htm EXHIBIT 99.1
Exhibit 99.1

Press Release
 
Eltek Ltd. Reports 2024 Third Quarter Financial Results
 
Petach Tikva, Israel (November 19, 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 September 30, 2024.
 
Third Quarter 2024 Highlights
 

 ◾
Revenues were $13.5 million, up 14 % over Q3 2023
 

 ◾
Operating profit was $1.9 million
 

 ◾
Profit before tax was $2.0 million
 

 ◾
Net income was $1.7 million or $0.25 per fully diluted share
 

 ◾
As of September 30, 2024, cash and cash equivalents amounted $18.1 million
 
"In the third quarter of 2024, we delivered strong financial results. We generated a record of $13.5 million in sales, bringing our revenues to $35.8 million for the first three quarters of 2024 and twelve-month trailing revenues (TTM) of $48 million. Our gross profit for the quarter totaled $3.5 million, with a net profit of $1.7 million. The gross margin for the third quarter reached 26%, reflecting the alignment of our product mix with market demand and the adjustment of production workers' wages to the current state of the local employment market. We continue to see robust demand across our two main customer segments: defense and aerospace, and medical devices. As of the end of the quarter, our cash and cash equivalents stood at $18.1 million, providing significant financial support for our growth strategy," said Eli Yaffe, CEO of Eltek.

"Throughout the quarter, we also advanced our accelerated investment plan. By year-end 2024, we plan to open a new 15,000 sq. ft. manufacturing space in our facility, which will include a state-of-the-art full Solder Mask Application line," Mr. Yaffe added.

"In response to continued demand for our products and our strong profitability, Eltek's Board of Directors has adopted a dividend policy, effective from 2024 year-end onwards. The policy will allow for an annual distribution of up to 25% of our net income, as determined under US GAAP," concluded Mr. Yaffe.


 
Third Quarter 2024 GAAP Financial Results
 
Revenues for the third quarter of 2024 were $13.5 million, compared to $11.9 million in the third quarter of 2023, a 14% increase;
 
Gross profit for the third quarter of 2024 was $3.5 million (26% of revenues) compared to $3.7 million (31% of revenues) in the third quarter of 2023. Gross margin in the third quarter of 2023 was exceptional due to sales orders which included an exceptional low material components;
 
Operating profit for the third quarter of 2024 was $1.9 million compared to operating profit of $2.3 million in the third quarter of 2023;
 
Income before income tax for the third quarter of 2024 was $2.0 million compared to $2.6 million in the third quarter of 2023;
 
Net income for the third quarter of 2024 was $1.7 million or $0.25 per fully diluted share compared to net income of $2.1 million or $0.36 per fully diluted share in the third quarter of 2023.
 
Third Quarter 2024 Non-GAAP Financial Results
 
EBITDA for the third quarter of 2024 was $2.3 million (17% of revenues) compared to EBITDA of $2.6 million (22% of revenues) in the third quarter of 2023.
 
First Nine Months 2024 GAAP Financial Results
 
Revenues for the first nine months of 2024 were $35.8 million compared to $34.4 million in the first nine months of 2023;
 
Gross profit for the first nine months of 2024 was $8.4 million (23% of revenues) compared to $9.6 million (28% of revenues) in the first nine months of 2023;
 
Operating profit for the first nine months of 2024 was $4.0 million compared to operating profit of $5.3 million in the first nine months of 2023;
 
Financial income for the first nine months of 2024 was $1.0 million compared to financial income of $0.8 million in the first nine months of 2023.
 
Income before income tax for the first nine months of 2024 was $5.0 million compared to $6.0 million in the first nine months of 2023;
 
Net profit for the first nine months of 2024 was $4.2 million or $0.63 per fully diluted share compared to net profit of $5.0 million or $0.85 per fully diluted share in the first nine months of 2023.
 


First Nine Months 2024 Non-GAAP Financial Results
 
EBITDA for the first nine months of 2024 was a $5.2 million (14% of revenues) compared to EBITDA of $6.2 million (18% of revenues) in the first nine 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, Tuesday, November 19, 2024, at 9:00am Eastern Time (16:00pm Israel Time, 6:00am 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 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

(Tables follow)



Eltek Ltd.
Consolidated Statements of Income
U.S dollars in thousands (except per share data)

   
Three months ended
    
Nine months ended
  
   
September 30,
    
September 30,
  
   
2024
    
2023
    
2024
    
2023
  
                         
Revenues
    
13,520
      
11,861
      
35,769
      
34,374
  
Costs of revenues
    
(10,003
)
    
(8,182
)
    
(27,364
)
    
(24,728
)
                                 
Gross profit
    
3,517
      
3,679
      
8,405
      
9,646
  
                                 
Research and development expenses, net
    
(17
)
    
(12
)
    
(79
)
    
(36
)
Selling, general and administrative expenses
    
(1,592
)
    
(1,357
)
    
(4,292
)
    
(4,317
)
                                 
Operating profit
    
1,908
      
2,310
      
4,034
      
5,293
  
                                 
Financial income, net
    
137
      
279
      
976
      
756
  
                                 
Income before income tax
    
2,045
      
2,589
      
5,010
      
6,049
  
                                 
Income tax expenses
    
333
      
442
      
808
      
1,027
  
                                 
Net income
    
1,712
      
2,147
      
4,202
      
5,022
  
                                 
Earnings per share:
                                
Basic net profit per ordinary share
    
0.26
      
0.36
      
0.64
      
0.85
  
                                 
Diluted net profit per ordinary share
    
0.25
      
0.36
      
0.63
      
0.85
  
                                 
Weighted average number of ordinary shares used to compute
                  
basic net profit per ordinary share (in thousands)
    
6,710
      
5,914
      
6,597
      
5,890
  
                                 
Weighted average number of ordinary shares used to compute
                  
diluted net profit per ordinary share (in thousands)
    
6,768
      
5,987
      
6,675
      
5,927
  



Eltek Ltd.
Consolidated Balance Sheets
U.S dollars in thousands

   
September 30,
    
December 31,
  
   
2024
    
2023
  
             
Assets
            
             
Current assets:
            
Cash and cash equivalents
    
8,548
      
9,278
  
Short-term bank deposits
    
9,530
      
2,862
  
Receivables:   Trade, net of provision for doubtful accounts
    
12,800
      
10,898
  
                       Other
    
83
      
689
  
Inventories
    
6,775
      
6,135
  
Prepaid expenses
    
225
      
245
  
                 
Total current assets
    
37,961
      
30,107
  
                 
Long term assets:
                
Severance pay fund
    
56
      
57
  
Deferred tax asset, net
    
663
      
1,098
  
Operating lease right of use assets
    
5,933
      
6,555
  
Total long term assets
    
6,652
      
7,710
  
                 
Fixed assets, less accumulated depreciation
    
14,166
      
9,354
  
                 
Total Assets
    
58,779
      
47,171
  
                 
Liabilities and Shareholder's equity
                
                 
Current liabilities:
                
Accounts payable: Trade
    
6,166
      
7,503
  
                              Other
    
5,812
      
5,689
  
Short-term operating lease liabilities
    
799
      
789
  
                 
Total current liabilities
    
12,777
      
13,981
  
                 
Long-term liabilities:
                
Employee severance benefits
    
436
      
447
  
Long-term operating lease liabilities
    
5,240
      
5,871
  
                 
Total long-term liabilities
    
5,676
      
6,318
  
                 
Shareholders' equity:
                
Ordinary shares of NIS 3.0 par value – Authorized: 10,000,000 shares at September 30, 2024 and December 31, 2023; Issued and outstanding: 6,712,040 shares at September 30, 2024 and 6,020,693 shares at December 31, 2023
    
6,009
      
5,443
  
Additional paid-in capital
    
32,611
      
23,587
  
Cumulative foreign currency translation adjustments
    
(1
)
    
783
  
Capital reserve
    
2,346
      
1,900
  
Accumulated deficit
    
(639
)
    
(4,841
)
Total shareholders' equity
    
40,326
      
26,872
  
Total liabilities and shareholders' equity
    
58,779
      
47,171
  



Eltek Ltd.
Unaudited Non-GAAP EBITDA Reconciliations
U.S dollars in thousands

   
Three months ended
    
Nine months ended
  
   
September 30,
    
September 30,
  
   
2024
    
2023
    
2024
    
2023
  
                         
GAAP net income
    
1,712
      
2,147
      
4,202
      
5,022
  
Add back items:
                                
                                 
Financial income, net
    
(137
)
    
(279
)
    
(976
)
    
(756
)
Income tax expenses
    
333
      
442
      
808
      
1,027
  
Depreciation and amortization
    
388
      
299
      
1,141
      
929
  
Non-GAAP EBITDA
    
2,296
      
2,609
      
5,175
      
6,222
  



Eltek Ltd.
Consolidated Statement of  Cash flow
U.S dollars in thousands

   
Three months ended
    
Nine months ended
  
   
September 30,
    
September 30,
  
   
2024
    
2023
    
2024
    
2023
  
                         
Cash flows from operating activities:
                        
                         
Net Income
    
1,712
      
2,147
      
4,202
      
5,022
  
Adjustments to reconcile net income to net cash flows
                          
provided by operating activities:
                                
Depreciation and amortization
    
388
      
299
      
1,141
      
929
  
Accrued interest
    
115
      
-
      
(71
)
    
-
  
Stock-based compensation
    
160
      
72
      
446
      
216
  
Decrease in deferred tax assets and long term tax receivable
    
313
      
432
      
404
      
998
  
     
976
      
803
      
1,920
      
2,143
  
                                 
Decrease (increase) in operating lease right-of-use assets
    
1
      
-
      
4
      
(22
)
Decrease (increase) in trade receivables
    
(2,735
)
    
985
      
(2,218
)
    
(799
)
Decrease (increase) in other receivables and prepaid expenses
    
292
      
87
      
601
      
(224
)
Decrease (increase) in inventories
    
(256
)
    
(47
)
    
(821
)
    
(856
)
Increase (decrease) in trade payables
    
1,087
      
(74
)
    
551
      
31
  
Increase (decrease) in other liabilities and accrued expenses
    
538
      
(263
)
    
289
      
1,214
  
Increase (decrease)  in employee severance benefits, net
    
32
      
11
      
2
      
33
  
     
(1,041
)
    
699
      
(1,592
)
    
(623
)
                                 
Net cash provided by operating activities
    
1,647
      
3,649
      
4,530
      
6,542
  
                                 
Cash flows from investing activities:
                                
Purchase of property and equipment
    
(1,967
)
    
(475
)
    
(7,914
)
    
(1,186
)
Insurance Proceeds
    
-
      
-
      
-
      
2,000
  
Investment in short-term bank deposits, net
    
(134
)
    
-
      
(6,668
)
    
-
  
Restricted deposits
    
-
      
-
      
-
      
192
  
Net cash provided by (used in) investing activities
    
(2,101
)
    
(475
)
    
(14,582
)
    
1,006
  
                                 
Cash flows from financing activities:
                                
Exercise of options
    
17
      
29
      
278
      
328
  
Repayment of long-term loans from bank
    
-
      
-
      
-
      
(3,348
)
Issuance of shares, net
    
-
      
-
      
9,312
      
-
  
Net cash provided by (used in) financing activities
    
17
      
29
      
9,590
      
(3,020
)
                                 
Effect of translation adjustments
    
108
      
(228
)
    
(268
)
    
(589
)
                                 
Net increase (decrease) in cash and cash equivalents
    
(329
)
    
2,975
      
(730
)
    
3,939
  
                                 
Cash and cash equivalents at the beginning of the period
    
8,877
      
8,330
      
9,278
      
7,366
  
                                 
Cash and cash equivalents at the end of the period
    
8,548
      
11,305
      
8,548
      
11,305