Eltek Ltd. Reports 2025 First Quarter Financial Results

PETACH TIKVA, Israel, May 20, 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 quarter ended March 31, 2025.

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First Quarter 2025 Highlights

    --  Revenues were $12.8 million
    --  Operating profit was $0.7 million
    --  Net income was $1.0 million or $0.15 per fully diluted share
    --  Net cash provided by operating activities amounted to $0.1 million.

"We ended the first quarter of 2025 with revenues of $12.8 million, an increase of approximately 8% compared to Q1 2024, and 18.5% higher than Q4 2024. Net income totalled $1.0 million. Our gross margin was impacted, compared to Q1 2024, due to increased labor costs and the ramp-up of new production equipment, which temporarily led to lower yields," said Eli Yaffe, CEO of Eltek.

"Looking ahead to the remainder of the year, we continue to advance our investment program as planned. Our forecast that we will complete the accelerated investment plan by mid-2026 remains unchanged. We are undertaking all necessary preparations to ensure the swift and efficient integration of the new lines, with the goal of bringing them into full production," continued Mr. Yaffe.

"On the revenue side, we continue to experience strong demand for the Company's products, and we are seeing lead times increase across all our relevant market sectors. As previously communicated, we are actively working to expand the scope of our commercial sales--an effort that we anticipate will bear fruit during the rest of 2025 and in the years to follow," concluded Mr. Yaffe.

First Quarter 2025 GAAP Financial Results

Revenues for the first quarter of 2025 were $12.8 million, compared to $11.8 million in the first quarter of 2024.

Gross profit for the first quarter of 2025 was $2.2 million (17% of revenues) compared to $3.3 (28% of revenues) in the first quarter of 2024.

Operating profit for the first quarter of 2025 was $0.7 million compared to operating profit of $1.7 million in the first quarter of 2024.

Net income for the first quarter of 2025 was $1.0 million or $0.15 per fully diluted share compared to net income of $1.7 million or $0.27 per fully diluted share in the first quarter of 2024.

Cash and short-term bank deposits amounted to $15.7 million as of March 31, 2025, with no outstanding debt.

First Quarter 2025 Non-GAAP Financial Results

EBITDA for the first quarter of 2025 was $1.2 million (9% of revenues) compared to EBITDA of $2.1 million (18% of revenues) in the first quarter of 2024.

Conference Call

Today, Tuesday, May 20, 2025, at 8:30am Eastern Time (15:30pm Israel Time, 5:30am 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 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.

About our Non-GAAP Financial Information

The Company reports financial results in accordance with U.S. GAAP and herein provides EBITDA, a non-GAAP measure. This non-GAAP measure is not in accordance with, nor is it a substitute for, GAAP measures. This non-GAAP measure is intended to supplement the Company's presentation of its financial results that are prepared in accordance with GAAP. The Company uses the non-GAAP measure 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.

Investor Contact

Ron Freund
Chief Financial Officer
Investor-Contact@nisteceltek.com
+972-3-939-5023


                                                                 
            
              Eltek Ltd.


                                                      
            
              Consolidated Statements of Income


                                              
            
              U.S. dollars in thousands (except per share data)








                                                                                                                            Three months ended


                                                                                                                            March  31,


                                                                                                                        2025            2024







     
              Revenues                                                                                             12,756          11,783



     Costs of revenues                                                                                             (10,544)        (8,531)





     
              Gross profit                                                                                          2,212           3,252





     Research and development, expenses, net                                                                           (50)           (15)



     Selling, general and administrative expenses                                                                   (1,437)        (1,516)





     
              Operating income                                                                                        725           1,721





     Financial income, net                                                                                              504             350





     
              Income before income taxes                                                                            1,229           2,071





     Income tax expenses                                                                                                227             332





     
              Net Income                                                                                            1,002           1,739







     
              Earnings per share:



     Basic net income per ordinary share                                                                               0.15            0.27





     Diluted net income per ordinary share                                                                             0.15            0.27





     Weighted average number of ordinary shares used to compute



     basic net income per ordinary share (in thousands)                                                               6,714           6,376





     Weighted average number of ordinary shares used to compute



     diluted net income per ordinary share (in thousands)                                                             6,785           6,491


                                                                              
        
             Eltek Ltd.


                                                                           
        
        Consolidated Balance Sheets


                                                                            
        
        U.S. dollars in thousands






                                                                                                                 March  31, December  31,


                                                                                                                       2025           2024





     
                Assets





     
                Current assets:



     Cash and cash equivalents                                                                                       6,466          7,575



     Short-term bank deposits                                                                                        9,257          9,663



     Trade receivables (net of allowance for credit losses)                                                         12,284         11,786



     Inventories                                                                                                     9,978          9,488



     Other accounts receivable and prepaid expenses                                                                    726            602





     Total current assets                                                                                           38,711         39,114





     
                Long term assets:



     Severance pay fund                                                                                                 55             56



     Deferred tax assets, net                                                                                          322            496



     Operating lease right of use assets                                                                             5,988          5,911



     Total long term assets                                                                                          6,365          6,463





     
                Property and equipment, net                                                                       15,999         14,578





     
                Total Assets                                                                                      61,075         60,155





     
                Liabilities and Shareholder's equity





     
                Current liabilities:



     Trade payables                                                                                                  7,615          7,367



     Other accounts payable and accrued expenses                                                                     5,389          5,136



     Short-term operating lease liabilities                                                                            936            827





     Total current liabilities                                                                                      13,940         13,330





     
                Long-term liabilities:



     Accrued severance pay                                                                                             450            443



     Long-term operating lease liabilities                                                                           5,157          5,190





     Total long-term liabilities                                                                                     5,607          5,633





     
                Shareholders' equity:



     Ordinary shares, NIS 3.0 par value authorized 10,000,000 shares, issued                                         6,011          6,011


      and outstanding 6,714,040 at March 31, 2025 and  6,714,040 at December


     31, 2024



     Additional paid-in capital                                                                                     32,627         32,627



     Foreign currency translation adjustments                                                                        (140)           664



     Capital reserve                                                                                                 2,645          2,507



     Retained earnings (accumulated deficit)                                                                           385          (617)



     Total shareholders' equity                                                                                     41,528         41,192



     
                Total liabilities and shareholders' equity                                                        61,075         60,155


                                          
         
                Eltek Ltd.


                                    
       
         Unaudited Non-GAAP EBITDA Reconciliations


                                      
         
             U.S. dollars in thousands








                                                                                              Three months ended


                                                                                              March  31,


                                                                                         2025           2024







     
                GAAP net Income                                                      1,002          1,739



     Add back items:





     Financial income, net                                                             (504)         (350)



     Income tax expenses                                                                 227            332



     Depreciation and amortization                                                       465            365



     
                Non-GAAP EBITDA                                                      1,190          2,086


                                                                
           
                Eltek Ltd.


                                                  
              
             Consolidated Statements of  Cash Flows


                                                         
              
             U.S. dollars in thousands






                                                                                                                      Three months ended


                                                                                                                      March  31,


                                                                                                                 2025           2024





     
                Cash flows from operating activities:





     Net Income                                                                                                1,002          1,739



     Adjustments to reconcile net income to net cash flows



     provided by operating activities:



     Depreciation                                                                                                465            365



     Accrued interest, net                                                                                     (128)



     Share-based compensation                                                                                    138            132



     Decrease in deferred tax assets                                                                              82            322


                                                                                                                  557            819





     Decrease (increase) in operating lease right-of-use assets                                                    1              1



     Decrease (increase) in trade receivables                                                                  (355)           736



     Decrease (increase) in other receivables and prepaid expenses                                              (67)            75



     Decrease (increase) in inventories                                                                        (330)         (396)



     Increase (decrease) in trade payables                                                                     (862)       (1,491)



     Increase (decrease) in other liabilities and accrued expenses                                               173          (201)



     Increase (decrease)  in employee severance benefits, net                                                      7             18


                                                                                                              (1,433)       (1,258)





     
                Net cash provided by operating activities                                                      126          1,300







     
                Cash flows from investing activities:



     Purchase of fixed assets                                                                                (1,137)       (2,731)



     Withdrawal of (investment in) short-term bank deposits, net                                                 534        (6,490)



     
                Net cash used in investing activities                                                        (603)       (9,221)







     
                Cash flows from financing activities:



     Exercise of options                                                                                                       246



     Repayment of long-term loans from bank



     Issuance of shares, net                                                                                                 9,180



     
                Net cash provided by (used in) financing activities                                                        9,426





     Effect of translation adjustments                                                                         (632)         (173)





     Net increase (decrease) in cash and cash equivalents                                                    (1,109)         1,332





     Cash and cash equivalents at the beginning of the period                                                  7,575          9,278





     
                Cash and cash equivalents at the end of the period                                           6,466         10,610

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SOURCE Eltek Ltd.