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 2005
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 [X] 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):__
Indicate by check mark whether by furnishing the information contained in
this Form, the registrant is also thereby furnishing the information to the
Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of 1934.
Yes [_] No [X]
If "Yes" is marked, indicate below the file number assigned to the
registrant in connection with Rule 12g3-2(b): 82-______________
SIGNATURES
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/ Arieh Reichart
------------------
Arieh Reichart
President and Chief Executive Officer
Date: May 24, 2005
ELTEK LTD.
Amnon Shemer, CFO
+972-3-9395023
amnons@eltek.co.il
ELTEK REPORTS FIRST QUARTER 2005 RESULTS AND PROVIDES
PRELIMINARY INFORMATION ON REVENUES FOR
THE SECOND QUARTER OF 2005
FIRST QUARTER NET INCOME OF $192,000 VS. NET LOSS OF $587,000, IN FIRST QUARTER
2004 QUARTERLY REVENUES RISE 13% YEAR OVER YEAR TO $ 7.9 MILLION
--------------------------------------------------------------------------------
PETACH-TIKVA, Israel, May 23, 2005-Eltek Ltd. (NasdaqSC: ELTK), the leading
Israeli manufacturer of advanced circuitry solutions, today announced financial
results for the first quarter ended March 31, 2005.
KEY FINANCIAL HIGHLIGHTS OF Q1 2005:
* Second consecutive quarter of profitability: Quarterly net income of
$192,000 or $0.04 per share
* Continued quarterly revenue growth on a year-over-year basis
* Further reduction in bank debt
Eltek reported revenues for the three months ended March 31,2005 of NIS 34.4
million ($7.9 million) compared with NIS 30.3 million ($7.0 million) during the
first quarter of 2004.
Net income for the first quarter totaled NIS 839,000 ($192,000), or NIS 0.27 per
NIS 1 par value of shares (NIS 0.16 or $0.04 per share) compared with a net loss
of NIS 2.6 million ($587,000), or NIS (0.61) per NIS 1 par value of shares (NIS
0.37 or $0.08 per share) for the same quarter in 2004.
The company also announced that it anticipates a decrease in revenues for the
second quarter of 2005 on a sequential basis, due to a short term flattening in
the demand for production capacity, but expects revenues to be higher than in
the comparable quarter of 2004.
"The first quarter of 2005 was another quarter of profitability for Eltek. We
grew our revenues by 13% year-over-year, expanded our gross and operating
margins, and continued to focus on our international presence," said Arieh
Reichart, President and Chief Executive Officer of Eltek.
"Based on preliminary internal estimates, we anticipate that our second
quarter's revenues will show a decline over the first quarter of 2005, but will
be higher than the second quarter of 2004. We intend to continue with our
efforts to grow the Company on a consistent basis, leveraging our leading
position in the flex-rigid board industry," said Reichart.
Amnon Shemer, CFO of Eltek commented: "In the first quarter of 2005 we continued
to reduce our bank debt. As of March 31, 2005, long term bank debt declined by
$1.6 million compared to March 31, 2004 and declined by $ 0.4 million compared
to December 31, 2004. In addition, our working capital deficiency improved by $
0.8 million compared to December 31, 2004."
About the Company
Eltek is Israel's leading manufacturers 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. The
Company has invested heavily in upgrading its production facilities over
the past five years.
For more information, visit Eltek's World Wide Web site at
www.eltekglobal.com
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 filings with the United States Securities
and Exchange Commission.
CONVENIENCE
TRANSLATION
-------
THREE MONTHS ENDED
MARCH 31,
----------------------------------------
2004 2005 2005
NIS NIS U.S. $
(UNAUDITED) (UNAUDITED) (UNAUDITED)
------- ------- -------
Revenues 30,314 34,395 7,887
Costs of revenues (26,845)* (28,083) (6,440)
------- ------- -------
Gross profit 3,469 6,312 1,447
Research and development, net - (191) (44)
Selling, general and administrative
expenses (4,629) (4,519) (1,036)
Amortization of goodwill (147) (152) (35)
------- ------- -------
Operating income (loss) (1,307) 1,450 332
Financial expenses, net (1,152) (614) (140)
------- ------- -------
Income (loss) before other expenses,
net (2,459) 836 192
Other expenses, net (17)* (11) (3)
------- ------- -------
Income (loss) before taxes on income (2,476) 825 189
Taxes on income (55) - -
------- ------- -------
Net income (loss) after taxes on
income (2,531) 825 189
Minority share in subsidiary's net
results (31) 14 3
------- ------- -------
Net income (loss) for the period (2,562) 839 192
======= ======= =======
Basic and diluted earnings (loss) per
NIS 1 par value of the share capital** (0.61) 0.27 0.06
======= ======= =======
Total par value of shares used to compute
basic and diluted earnings (loss) per NIS
1 par value of share 4,130 4,197 4,197
======= ======= =======
* Reclassified
** Ordinary shares of a par value of NIS 0.6 each.
ELTEK LTD.
CONSOLIDATED CONDENSED BALANCE SHEETS
CONVENIENCE
TRANSLATION
-------
DECEMBER 31, MARCH 31, MARCH 31,
------- ------- -------
2005 2005
2004 UNAUDITED UNAUDITED
NIS NIS U.S. $
------- ------- -------
(IN THOUSANDS)
ASSETS
CURRENT ASSETS
Cash and cash equivalents 4,274 2,873 659
Receivables: Trade 23,835 24,637 5,649
Other 1,158 3,316 760
Inventories 13,633 13,908 3,189
Prepaid expenses 563 838 192
------- ------- -------
TOTAL CURRENT ASSETS 43,463 45,572 10,449
------- ------- -------
DEFERRED TAXES 753 724 166
------- ------- -------
PROPERTY AND EQUIPMENT, NET 31,569 29,374 6,736
------- ------- -------
GOODWILL 4,656 4,325 992
------- ------- -------
TOTAL ASSETS 80,441 79,995 18,343
======= ======= =======
LIABILITIES AND SHAREHOLDER'S EQUITY
CURRENT LIABILITIES
Short-term credit and current maturities of
long-term debts 19,589 19,413 4,452
Trade payables 23,577 21,375 4,901
Other liabilities and accrued expenses 11,083 12,140 2,784
------- ------- -------
TOTAL CURRENT LIABILITIES 54,249 52,928 12,137
------- ------- -------
LONG- TERM LIABILITIES
Long term debt, excluding current maturities 6,687 4,977 1,141
Employee severance benefits 1,048 1,080 248
------- ------- -------
TOTAL LIABILITIES 61,984 58,985 13,526
------- ------- -------
MINORITY INTERESTS 1,900 1,813 416
------- ------- -------
CONVERTIBLE NOTE 1,566 1,601 367
------- ------- -------
SHAREHOLDER'S EQUITY
Ordinary shares, NIS 0.6 par value. Authorized
50,000,000 shares, issued
and outstanding 5,602,511 shares at March 31,
2005 and 5,491,711 shares at December 31, 2004 29,698 29,765 6,825
Additional paid in capital 52,500 54,553 12,509
Capital reserves related to loans from controlling
shareholders 10,010 10,010 2,295
Cumulative foreign currency translation adjustments 2,574 2,220 509
Capital reserve 6,685 6,685 1,533
Accumulated deficit (86,476) (85,637) (19,637)
------- ------- -------
TOTAL SHAREHOLDER'S EQUITY 14,991 17,596 4,034
------- ------- -------
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY 80,441 79,995 18,343
======= ======= =======