Market Overview

Eltek Reports Fourth Quarter and Full Year 2017 Financial Results

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Eltek Reports Fourth Quarter and Full Year 2017 Financial Results

- Revenues of $9.1 million in the fourth quarter of 2017, compared to $7.3 million in Q4-2016 (excluding Kubatronik)

- Net loss of $669,000, compared to net loss of $2.8 million in Q4-2016 (excluding Kubatronik

- Revenues of $32.8 million in 2017, compared to $33.2 million in 2016 (excluding Kubatronik)

- Net loss of $3.8 million in 2017, compared to net loss of $3.2 million in 2016 (excluding Kubatronik)

PR Newswire

PETACH-TIKVA, Israel, April 30, 2018 /PRNewswire/ -- Eltek Ltd. (NASDAQ:ELTK), a global manufacturer and supplier of technologically advanced solutions in the field of printed circuit boards, announced today its financial results for the fourth quarter and full year ended December 31, 2017.

Mr. Yitzhak Nissan, Chairman of the Board and Chief Executive Officer, commented: "Our revenues in the full year of 2017 decreased to $32.8 million from $33.2 million in 2016, excluding Kubatronik. Our revenues increased in the fourth quarter of 2017 to $9.1 million compared to revenues of $7.3 million in the fourth quarter of 2016, excluding Kubatronik. We continue the implementation of the improvements we made in our manufacturing procedures, in order to supply our increased backlog of orders.

We see an increased demand for our products and our backlog of orders has grown significantly. I believe that the adjustments made to our manufacturing and marketing operations will assist the Company to reach its goals quickly and efficiently. I am determined to bring the Company back to profitability in the near future.

In March 2018, Nistec Ltd., the Company's controlling shareholder, extended the Company a bridge financing of NIS 4 million (approximately $1.1 million) for working capital. In addition, in April 2018, Nistec provided the Company a letter of commitment to provide additional financing in the amount of up to $2.5 million, valid for one year following the date of the approval of its 2017 financial statements. These supports, along with the financial support provided by Nistec in 2017, reflect my confidence in the Company and my belief that Eltek has the potential to overcome the manufacturing challenges and return to profitability.  

The results for the fourth quarter and the full year ended December 31, 2017, do not include the operations of Kubatronik Leiterplatten GmbH, which were included in Eltek's results for the comparable periods in 2016. Therefore, we have provided selected financial information on a proforma basis, excluding Kubatronik's results for 2016," Mr. Nissan concluded.  

Highlights of the Full Year of 2017 compared to the Full Year of 2016

  • Revenues for the full year of 2017 amounted to $32.8 million compared to revenues of $37.1 million in 2016 ($33.2 million excluding Kubatronik).
  • Gross profit was $1.3 million (4.1% of revenues), compared to gross profit of $2.8 million (7.6% of revenues) in 2016, ($2.8 million or 8.3% of revenues excluding Kubatronik).
  • Operating loss was $3.4 million compared to an operating loss of $2 million in 2016, ($1.6 million excluding Kubatronik).
  • Net loss was $3.8 million or $1.86 per fully diluted share, compared to a net loss of $3.6 million or $1.79 per fully diluted share in 2016 (a net loss of $3.2 million or $1.6 per fully diluted share excluding Kubatronik).
  • EBITDA was a negative $1.3 million compared to a negative $313,000 in the 2016 (a negative $124,000 excluding Kubatronik).
  • Net cash used in operating activities amounted to $3.4 million compared to $165,000 provided by operating activities in 2016.
  • Cash and cash equivalents as of December 31, 2017 were $887,000, compared to $1.2 million as of December 31, 2016.

Highlights of the Fourth Quarter of 2017 compared to the Fourth Quarter of 2016

  • Revenues for the fourth quarter of 2017 were $9.1 million compared to revenues of $8.1 million in the fourth quarter of 2016 ($7.3 million excluding Kubatronik).
  • Gross profit was $740,000 (8.1% of revenues) compared to a gross loss of $463,000 (5.7% of revenues) in the fourth quarter of 2016 (gross loss of $283,000 or 3.9% of revenues excluding Kubatronik).
  • Operating loss was $568,000 compared to an operating loss of $1.6 million in the fourth quarter of 2016 (an operating loss of $1.4 million excluding Kubatronik).
  • Net loss was $669,000 or $0.33 per fully diluted share compared to a net loss of $3 million or $1.48 per fully diluted share in the fourth quarter of 2016 (a net loss of $2.8 million or $1.4 per fully diluted share excluding Kubatronik).
  • EBITDA was a negative $130,000 compared to a negative $1.4 million in the fourth quarter of 2016 (a negative $1.2 million excluding Kubatronik).
  • Net cash used in operating activities amounted to $775,000 compared to $1.3 million of cash used in operating activities in the fourth quarter of 2016.

Conference Call:

Today, Monday, April 30, 2018, at 9:30 a.m. Eastern Time, Eltek will conduct a conference call to discuss the results. The call will feature remarks by Mr. Yitzhak Nissan, Chairman of the Board of Directors and Chief Executive Officer, Mr. Roberto Tulman, Deputy CEO and Chief Technology Officer, and Mr. Amnon Shemer, Chief Financial Officer.

To participate, please call the following teleconference numbers. Please allow for additional time to connect prior to the call:

United States: 1-888-407-2553
Israel: 03-9180664
International: +972-3-9180664

At:
9:30 a.m. Eastern Time
6:30 a.m. Pacific Time
16:30 p.m. Israel Time

A replay of the call will be available through the Investor Info section on Eltek's corporate website at www.nisteceltek.com approximately 24 hours after the conference call is completed and will be archived for 30 days.

(Tables follow)

 

Eltek Ltd.

Proforma (Non-GAAP) Statements of Operations

(In thousands US$, except per share data)

Excluding Kubatronik's operation in 2016






Solo


Solo




Three months ended


Year ended




Dec 31,


Dec 31,




2017


2016


2017


2016












Revenues


9,091


7,347


32,754


33,161


Costs of revenues


(8,352)


(7,630)


(31,427)


(30,409)












Gross profit


740


(283)


1,327


2,752












Research and development income, net


(3)


(20)


(41)


(117)












Selling, general and administrative expenses


(1,305)


(1,106)


(4,704)

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