6-K
Eltek Ltd (ELTK)
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 May 2025
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 May 20, 2025 Eltek issued a press release reporting first quarter 2025 financial results. A copy of this press release is furnished herewith as Exhibit 99.1.
EXHIBIT INDEX
| Exhibit | Description |
|---|---|
| 99.1 | Press Release: Eltek Ltd. Reports 2025 First 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.
| ELTEK LTD. |
|---|
| (Registrant) |
| By: /s/Ron Freund |
| Ron Freund |
| Chief Financial Officer |
Date: May 20, 2025
Exhibit 99.1
Press Release
Eltek Ltd. Reports 2025 First Quarter Financial Results
Petach Tikva, Israel (May 20, 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 March 31, 2025.
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
(Tables follow)
| 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 and outstanding 6,714,040 at March 31, 2025 and 6,714,040 at December 31, 2024 | 6,011 | 6,011 | ||||
| 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 |