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Eltek Ltd. announced its financial results for the fourth quarter and full year ended December 31, 2018.
Eli Yaffe, chief executive officer, commented:
"As recently announced, we established a new leadership team to implement our turnaround plan. We identified the products that were underpriced and declined such orders in order to increase profitability, which resulted in a reduced loss in 2018. During the fourth quarter this resulted in an initial reduction in sales volume, but we believe that this will improve our on-time delivery performance, increase customer satisfaction and build additional sales that will return us to profitability."
In March 2019, the Company issued at no charge to the holders of our ordinary shares subscription rights to purchase up to an aggregate of 3,380,920 shares, such that each shareholder received five subscription rights for every three ordinary shares owned on the record date, at a price of $1.464 per share. Our shareholders purchased 2,351,701 ordinary shares, for an aggregate of $3.4 million. The proceeds from the offering are strengthening our working capital and will be used to reduce our line of credit, as well as for general corporate purposes, including the possible investment in plant and equipment.
"I see significant potential for Eltek in the high-end PCB market with our skilled engineers and experienced management. I am optimistic that we will be able to capitalize on our strengths, return the Company to profitability and renew our position as a leading high-end PCB manufacturer," Yaffe concluded.
Highlights of the Full Year of 2018 compared to the Full Year of 2017
- Revenues for the full year of 2018 amounted to $33.9 million compared to revenues of $32.8 million in 2017.
- Gross profit was $2.6 million (7.7% of revenues) in 2018 compared to gross profit of $1.3 million (4.1% of revenues) in 2017.
- Operating loss was $2.1 million in 2018 compared to an operating loss of $3.4 million in 2017.
- Net loss was $2.6 million or $1.28 per fully diluted share in 2018, compared to a net loss of $3.8 million or $1.86 per fully diluted share in 2017.
- EBITDA was a negative $421,000 in 2018 compared to a negative $1.3 million in 2017.
- Net cash used in operating activities amounted to $813,000 in 2018 compared to $3.4 million used in operating activities in 2017.
- Cash and cash equivalents as of December 31, 2018 were $992,000, compared to $887,000 as of December 31, 2017.
Highlights of the Fourth Quarter of 2018 compared to the Fourth Quarter of 2017
- Revenues for the fourth quarter of 2018 were $7.8 million compared to revenues of $9.1 million in the fourth quarter of 2017.
- Gross profit was $603,000 (7.7% of revenues) in the fourth quarter of 2018 compared to a loss of $740,000 (8.1% of revenues) in the fourth quarter of 2017.
- Operating loss was $416,000 in the fourth quarter of 2018 compared to an operating loss of $568,000 in the fourth quarter of 2017.
- Net loss was $631,000 or $0.31 per fully diluted share in the fourth quarter of 2018 compared to a net loss of $669,000 or $0.33 per fully diluted share in the fourth quarter of 2017.
- EBITDA was a negative $43,000 in the fourth quarter of 2018 compared to a negative $131,000 in the fourth quarter of 2017.
- Net cash provided from operating activities amounted to $136,000 in the fourth quarter of 2018 compared to $775,000 of cash used in operating activities in the fourth quarter of 2017.
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 has ITAR, AS-9100 and NADCAP Electronics permits and its customers include top of the line companies in the defense, aerospace and medical industries in Israel, the United States, Europe and Asia.