Eltek Ltd 6-K, filed Aug 12, 2020
Eltek Ltd (ELTK)
6-K
2020-08-12
For: 2020-08-12
View Original
Added on
April 09, 2026
About this 6-K
Eltek Ltd filed this 6-K on August 12, 2020.
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 August 2020
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): ☐
This Form 6-K is being incorporated by reference into the Registrant’s Form S-8 Registration Statements File Nos. 333-123559 and 333-130611.
Eltek Ltd.
EXPLANATORY NOTE
The following exhibit is attached:
99.1 Announcement: Eltek Reports 2020 Second Quarter Financial Results.
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.
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ELTEK LTD.
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(Registrant)
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By:
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/s/ Alon Mualem
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Alon Mualem
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Chief Financial Officer
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Date: August 12, 2020
EXHIBIT INDEX
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EXHIBIT NO.
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DESCRIPTION
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Exhibit 99.1
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Press Release
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Eltek Reports 2020 Second Quarter Financial Results
| • |
Revenues of $8.8 million
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| • |
Gross profit of $1.9 million
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| • |
Net Profit of $704,000
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PETACH-TIKVA, Israel, August 12, 2020 - 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 quarter ended June 30, 2020.
Mr. Eli Yaffe, Chief Executive Officer, commented: "We are pleased that our second quarter reflects the continuing trend of improved results. We are
gratified that despite the global Covid-19 pandemic and its related challenges, we were able to grow our top line by 7.2% compared to the second quarter of 2019 and improve our gross margins from 15.3% in Q2 2019 to 21.6% in Q2 2020."
“We are operating in a challenging business environment and making the necessary adjustments to protect our staff, expand our business, improve customer satisfaction, increase revenues, maintain
the trend of improved operating efficiencies and reach sustained profitability,” concluded Mr. Yaffe.
Highlights of the Second Quarter of 2020 compared to the Second Quarter of 2019
| • |
Revenues for the second quarter of 2020 were $8.8 million compared to revenues of $8.2 million in the second quarter of 2019;
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| • |
Gross profit increased from $1.3 million (15.3% of revenues) in the second quarter of 2019 to $1.9 million (21.6% of revenues) in the second quarter of 2020;
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| • |
Operating profit increased to $809,000 during the second quarter of 2020 as compared to operating profit of $7,000 in the second quarter of 2019;
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| • |
Other expenses were nil during the second quarter of 2020 as compared to other income of $871,000 in the second quarter of 2019 that was mainly attributable to receipt of a non-recurring insurance
payment relating to the damage to one of our manufacturing machines and the resulting losses;
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| • |
Net profit was $704,000, or $0.16 per fully diluted share in the second quarter of 2020 compared to net profit of $790,000, or $0.19 per fully diluted share, in the second quarter of 2019;
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| • |
EBITDA was $1.2 million in the second quarter of 2020 compared to EBITDA of $1.25 million in the second quarter of 2019;
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| • |
Net cash provided by operating activities amounted to $1.4 million in the second quarter of 2020 compared to net cash used in operating activities of
$301,000 in the second quarter of 2019.
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Highlights for the First Six Months of 2020
| • |
Revenues for the first six months of 2020 were $17.9 million compared to $16.9 million in the first six months of 2019;
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| • |
Gross profit was $3.7 million (20.6% of revenues) compared to gross profit of $2.8 million (16.5% of revenues) in the first six months of 2019;
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| • |
Operating profit was $1.4 million compared to operating profit of $440,000in the first six months of 2019;
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| • |
Other expenses were $1,000 in the first six months of 2020 as compared to other income of 877,000 in the first six months of 2019;
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| • |
Net profit was $1.2 million, or $0.28 per fully diluted share compared to net profit of $1.0 million, or $0.33 per fully diluted share in the first six months of 2019;
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| • |
EBITDA was $2.2 million in the first six months of 2020, compared to EBITDA of $2.1 million in the first six months of 2019;
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| • |
Net cash provided by operating activities amounted to $2.9 million in the first six months of 2020 compared to net cash provided by operating activities of $1.3 million in the first six months of
2019.
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Conference Call
Today, Wednesday, August 12, 2019, at 8:30 a.m. 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:
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United States:
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1-888-668-9141
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Israel:
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03-9180609
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International:
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+972-3-9180609
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At:
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8:30 a.m. Eastern Time
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5:30 a.m. Pacific Time
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15:30 p.m. Israel Time
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A replay of the call will be available through the Investor Info section on Eltek’s corporate website at http://www.nisteceltek.com approximately 24 hours after the
conference call is completed and will be archived for 30 days.
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 subsidiaries in North America and in Europe
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.
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 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.
Investor Contact:
Alon Mualem
Chief Financial Officer
alonm@nisteceltek.com
Chief Financial Officer
alonm@nisteceltek.com
+972-3-9395023
(Tables follow)
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Eltek Ltd.
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Consolidated Statements of Operations
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(In thousands US$, except per share data)
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Three months ended
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Six months ended
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|||||||||||||||
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June 30,
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June 30,
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|||||||||||||||
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2020
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2019
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2020
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2019
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|||||||||||||
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Revenues
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8,792
|
8,198
|
17,949
|
16,933
|
||||||||||||
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Costs of revenues
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(6,892
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)
|
(6,942
|
)
|
(14,246
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)
|
(14,139
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)
|
||||||||
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Gross profit
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1,900
|
1,256
|
3,703
|
2,795
|
||||||||||||
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Selling, general and administrative expenses
|
(1,095
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)
|
(1,249
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)
|
(2,284
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)
|
(2,355
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)
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||||||||
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R&D expenses, net
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4
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-
|
2
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-
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||||||||||||
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Operating profit
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809
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7
|
1,421
|
440
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||||||||||||
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Financial expenses, net
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(83
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)
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(78
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)
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(139
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)
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(263
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)
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||||||||
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Other income, net
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-
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871
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-
|
877
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||||||||||||
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Profit before income tax
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726
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800
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1,282
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1,054
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||||||||||||
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Tax expenses
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(22
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)
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(10
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)
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(38
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)
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(23
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)
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||||||||
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Net Profit
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704
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790
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1,244
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1,032
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||||||||||||
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Earnings per share
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||||||||||||||||
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Basic and diluted net profit per ordinary share
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0.16
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0.19
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0.28
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0.33
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||||||||||||
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Weighted average number of ordinary shares
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||||||||||||||||
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used to compute basic and diluted net profit per
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||||||||||||||||
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ordinary share (in thousands)
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4,380
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4,148
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4,380
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3,088
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||||||||||||
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Eltek Ltd.
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Consolidated Balance Sheets
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(In thousands US$)
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June 30,
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December 31,
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|||||||
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2020
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2019
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|||||||
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Assets
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||||||||
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Current assets
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||||||||
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Cash and cash equivalents
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3,407
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1,628
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||||||
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Receivables: Trade, net of provision for doubtful accounts
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7,307
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7,480
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||||||
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Other
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246
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145
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||||||
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Inventories
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3,474
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3,735
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||||||
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Prepaid expenses
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238
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530
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||||||
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Total current assets
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14,672
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13,518
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||||||
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Long term assets
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||||||||
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Restricted deposits
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58
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-
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||||||
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Severance pay fund
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59
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60
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||||||
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Operating lease right of use assets
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2,029
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2,490
|
||||||
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Total long term assets
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2,146
|
2,550
|
||||||
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Fixed assets, less accumulated depreciation
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6,407
|
6,761
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||||||
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Total Assets
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23,225
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22,829
|
||||||
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Liabilities and Shareholder's equity
|
||||||||
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Current liabilities
|
||||||||
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Short-term credit and current maturities of long-term debts
|
1,303
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2,120
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||||||
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Short-term credit from related party
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2,885
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3,472
|
||||||
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Accounts payable: Trade
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3,983
|
4,673
|
||||||
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Other
|
3,653
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3,118
|
||||||
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Short-term operating lease liabilities
|
1,141
|
1,383
|
||||||
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Total current liabilities
|
12,965
|
14,766
|
||||||
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Long-term liabilities
|
||||||||
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Long term debt, excluding current maturities
|
1,468
|
387
|
||||||
|
Employee severance benefits
|
307
|
268
|
||||||
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Deferred tax liabilities
|
57
|
45
|
||||||
|
Long-term operating lease liabilities
|
872
|
1,094
|
||||||
|
Total long-term liabilities
|
2,704
|
1,794
|
||||||
|
Equity
|
||||||||
|
Ordinary shares, NIS 3.0 par value authorized 10,000,000 shares, issued and outstanding 4,380,268
|
3,964
|
3,964
|
||||||
|
Additional paid-in capital
|
18,583
|
18,583
|
||||||
|
Cumulative foreign currency translation adjustments
|
2,479
|
2,479
|
||||||
|
Capital reserve
|
1,006
|
963
|
||||||
|
Accumulated deficit
|
(18,476
|
)
|
(19,720
|
)
|
||||
|
Shareholders' equity
|
7,556
|
6,269
|
||||||
|
Total liabilities and shareholders' equity
|
23,225
|
22,829
|
||||||
|
Eltek Ltd.
|
|
|
Unaudited Non-GAAP EBITDA Reconciliations
|
|
|
(In thousands US$)
|
|
Non-GAAP EBITDA Reconciliations
|
Three months ended
|
Six months ended
|
||||||||||||||
|
June 30,
|
June 30,
|
|||||||||||||||
|
2020
|
2019
|
2020
|
2019
|
|||||||||||||
|
GAAP net Income (loss)
|
704
|
790
|
1,244
|
1,032
|
||||||||||||
|
Add back items:
|
||||||||||||||||
|
Financial expenses, net
|
83
|
78
|
139
|
263
|
||||||||||||
|
Income tax expense
|
22
|
10
|
38
|
22
|
||||||||||||
|
Depreciation and amortization
|
391
|
372
|
786
|
744
|
||||||||||||
|
Non-GAAP EBITDA
|
1,200
|
1,250
|
2,207
|
2,061
|
||||||||||||
|
Eltek Ltd.
|
|
Consolidated Statement of Cash flow
|
|
(In thousands US$)
|
|
Three months ended
|
Six months ended
|
|||||||||||||||
|
June 30,
|
June 30,
|
|||||||||||||||
|
2020
|
2019
|
2020
|
2019
|
|||||||||||||
|
Cash flows from operating activities:
|
||||||||||||||||
|
Net Income
|
704
|
790
|
1,244
|
1,032
|
||||||||||||
|
Adjustments to reconcile net profit to net
|
||||||||||||||||
|
cash flows provided by operating activities:
|
||||||||||||||||
|
Depreciation and amortization
|
391
|
375
|
786
|
748
|
||||||||||||
|
Stock-based compensation
|
17
|
31
|
43
|
62
|
||||||||||||
|
Transaction with controlling shareholder
|
-
|
15
|
-
|
29
|
||||||||||||
|
Revaluation of long term loans
|
(6
|
)
|
(8
|
)
|
4
|
(24
|
)
|
|||||||||
|
Increase in deferred tax liabilities
|
6
|
-
|
12
|
-
|
||||||||||||
|
408
|
413
|
845
|
815
|
|||||||||||||
|
Decrease in operating lease right-of-use assets
|
1
|
(4
|
)
|
(9
|
)
|
|||||||||||
|
Decrease (increase) in trade receivables
|
280
|
(1,838
|
)
|
149
|
(1,598
|
)
|
||||||||||
|
Decrease in other receivables and prepaid expenses
|
49
|
564
|
187
|
879
|
||||||||||||
|
Decrease (increase) in inventories
|
27
|
302
|
248
|
(114
|
)
|
|||||||||||
|
Increase (decrease) in trade payables
|
(113
|
)
|
(652
|
)
|
(370
|
)
|
194
|
|||||||||
|
Increase in other liabilities and accrued expenses
|
17
|
129
|
538
|
132
|
||||||||||||
|
Increase in employee severance benefits, net
|
24
|
(9
|
)
|
40
|
(9
|
)
|
||||||||||
|
285
|
(1,504
|
)
|
788
|
(525
|
)
|
|||||||||||
|
Net cash provided by operating activities
|
1,397
|
(301
|
)
|
2,877
|
1,322
|
|||||||||||
|
Cash flows from investing activities:
|
||||||||||||||||
|
Purchase of fixed assets
|
(250
|
)
|
(91
|
)
|
(454
|
)
|
(250
|
)
|
||||||||
|
Restricted deposits
|
(58
|
)
|
-
|
(58
|
)
|
-
|
||||||||||
|
Net cash used in investing activities
|
(308
|
)
|
(91
|
)
|
(512
|
)
|
(250
|
)
|
||||||||
|
Cash flows from financing activities:
|
||||||||||||||||
|
Short- term bank credit, net
|
(326
|
)
|
(1,787
|
)
|
(765
|
)
|
(3,394
|
)
|
||||||||
|
Proceeds from short- term shareholder loan
|
-
|
-
|
-
|
555
|
||||||||||||
|
Repayment of short- term shareholder loan
|
(571
|
)
|
-
|
(571
|
)
|
-
|
||||||||||
|
Issuance of ordinary shares in rights offering, net
|
-
|
3,298
|
-
|
3,298
|
||||||||||||
|
Repayment of long-term loans from bank
|
(35
|
)
|
(231
|
)
|
(108
|
)
|
(455
|
)
|
||||||||
|
Proceeds from long-term loans
|
1,141
|
-
|
1,141
|
-
|
||||||||||||
|
Repayment of credit from fixed asset payables
|
(152
|
)
|
(98
|
)
|
(304
|
)
|
(194
|
)
|
||||||||
|
Net cash used in financing activities
|
57
|
1,182
|
(607
|
)
|
(190
|
)
|
||||||||||
|
Effect of translation adjustments
|
47
|
(21
|
)
|
21
|
(37
|
)
|
||||||||||
|
Net increase (decrease) in cash and cash equivalents
|
1,193
|
769
|
1,779
|
845
|
||||||||||||
|
Cash and cash equivalents at beginning of the period
|
2,214
|
1,068
|
1,628
|
992
|
||||||||||||
|
Cash and cash equivalents at period end
|
3,407
|
1,837
|
3,407
|
1,837
|
||||||||||||