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PETACH-TIKVA, Israel, May 27, 2014 /PRNewswire/ -- Eltek Ltd. (ELTK), the leading Israeli manufacturer of advanced circuitry solutions, including complex build ups of rigid and flex-rigid printed circuit boards, announced today its financial results for the quarter ended March 31, 2014.

Revenues for the quarter ended March 31, 2014 were $12.3 million compared to revenues of $12.5 million in the first quarter of 2013.

Gross profit for the first quarter of 2014 was $1.5 million (12.3% of revenues) compared with gross profit of $1.8 million (14.4% of revenues) in the first quarter of 2013.

Operating loss for the first quarter of 2014 was $121,000 compared with operating profit of $230,000 in the first quarter of 2013. The decline in our gross and operating profit was mainly due to the devaluation of the US dollar against the NIS, and a slight reduction in revenues.

Net loss for the first quarter of 2014 was $187,000 or ($0.02) per share, compared to net profit of $127,000 or $0.02 per share, in the first quarter of 2013.

EBITDA:
In the first quarter of 2014, Eltek had EBITDA of $354,000 compared with EBITDA of $613,000 in the first quarter of 2013.

ELTEK uses EBITDA as a non-GAAP financial performance measurement. EBITDA is calculated by adding back to net income interest, taxes, depreciation and amortization. EBITDA is provided to investors to complement results provided in accordance with GAAP, as management believes the measure helps illustrate underlying operating trends in the Company's business and uses the measure to establish internal budgets and goals, manage the business and evaluate performance. EBITDA should not be considered in isolation or as a substitute for comparable measures calculated and presented in accordance with GAAP. Reconciliation between the company's results on a GAAP and non-GAAP basis is provided in a table immediately following the Consolidated Statement of Operations

Management Comments:

Arieh Reichart, President and Chief Executive Officer of Eltek commented: "Our capital investment plan is being implemented as scheduled and we expect to see improvements in our manufacturing capabilities beginning in the fourth quarter of this year. The results of our operations in the first quarter of 2014 were negatively impacted by the weakness of the U.S. dollar, as the exchange rate of the dollar compared to the NIS in the first quarter of 2014 was 5.7% lower than in the first quarter of 2013. In addition we saw a decline in revenues due to the shift of certain programs to the U.S. by some domestic defense customers. We are working on building alternative sources of revenues to offset such reduction in orders."

About Eltek
Eltek is Israel's leading manufacturer of printed circuit boards, the core circuitry of most electronic devices. It specializes in the complex high-end of PCB manufacturing, i.e., HDI, multi-layered and flex-rigid boards. Eltek's technologically advanced circuitry solutions are used in today's increasingly sophisticated and compact electronic products. For more information, visit Eltek's website at www.eltekglobal.com.

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, 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:
Amnon Shemer
Chief Financial Officer
amnons@eltek.co.il
+972-3-9395050

Eltek Ltd.

Consolidated Statements of Operations

(In thousands US$, except per share data)










Three months ended





March  31,





2014


2013








Revenues


12,263


12,452



Costs of revenues


(10,752)


(10,664)










Gross profit


1,511


1,788










Selling, general and administrative expenses


(1,632)


(1,558)










Operating profit (loss)


(121)


230










Financial income (expenses), net


(68)


(100)










Profit (PPMT) (loss) before other income, net


(189)


130










Other income, net


(0)


(3)










Profit (loss) before income tax expenses


(189)


127










Income tax (expenses), net


(18)


(9)










Net Profit (loss)


(207)


118










Net profit (loss) attributable to non controlling interest


(20)


(9)










Net Profit (loss) attributable to Eltek Ltd.


(187)


127










Earnings per share














Basic and diluted net gain (loss) per ordinary share


(0.02)


0.02










Weighted average number of ordinary shares 







used to compute basic and diluted net gain (loss) per







ordinary share (in thousands)


10,143


6,610

















Eltek Ltd.

Consolidated Balance Sheets

(In thousands US$)










March  31,





2014


2013



Assets














Current assets







Cash and cash equivalents


988


1,217



Receivables:   Trade, net of provision for doubtful accounts


8,959


9,187



                     Other


456


126



Inventories 


5,889


5,125



Prepaid expenses 


265


311










Total current assets


16,557


15,966










Deferred taxes


2,850


0










Assets held for employees' severance benefits


53


49










Fixed assets, less accumulated depreciation


9,948


9,595










Goodwill


75


71










Total assets


29,483


25,681































Liabilities and Shareholder's equity














Current liabilities







Short-term credit and current maturities of long-term debts


1,276


5,452



Accounts payable: Trade


7,789


6,999



                            Related parties


-


1,539



                            Other


5,770


4,768










Total current liabilities


14,835


18,758










Long-term liabilities







Long term debt, excluding current maturities


1,252


969



Employee severance benefits


325


203










Total long-term liabilities


1,577


1,172










Equity







Ordinary shares, NIS 0.6  par value authorized 50,000,000 shares, issued and outstanding 6,610,107 in 2013 and 10,142,762 in 2014


1,985


1,384



Additional paid-in capital


17,270


14,328



Cumulative foreign currency translation adjustments


3,128


2,816



Capital (CGC-OLD) reserve


695


695



Accumulated deficit


(10,072)


(13,583)



Shareholders' equity


13,006


5,640



Non controlling interest


64


112



Total equity


13,070


5,752



Total liabilities and shareholders' equity


29,482


25,681
























Eltek Ltd.

Unaudited Non-GAAP EBITDA Reconciliations

(In thousands US$, except per share data)








Non-GAAP EBITDA Reconciliations


Three months ended





March  31,





2014


2013















GAAP net Income (loss)


(187)


126



Add back items:














Financial (income) expenses, net 


68


100



Income tax (benefit) expense


18


9



Depreciation and amortization


455


377



Adjusted EBITDA            


354


613



 

SOURCE Eltek Ltd.

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