6-K

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 November 2006

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 o

        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): o

        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): o

        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 o No x

        If “Yes” is marked, indicate below the file number assigned to the registrant in connection with Rule 12g3-2(b): 82-_______________

This Form 6-K is being incorporated by reference into the Registrant’s Form S-8 Registration Statements File Nos. 333-12012 and 333-123559.

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/ Amnon Shemer
——————————————
Amnon Shemer
Chief Financial Officer

Date: November 13, 2006

ELTEK Ltd.

Amnon Shemer, CFO

+972-3-9395023

amnons@eltek.co.il


Eltek Announces Third-Quarter 2006 Financial Results

  — Continued double – digit organic revenue growth, reaching a record level of $10.2 million in Q3, up 20%

  — Eighth consecutive quarter of profitability, net income $ 480,000 in Q3, up 24 %

PETACH-TIKVA, Israel, November 13, 2006 (BUSINESS WIRE) – Eltek Ltd. (NASDAQ:ELTK), the leading Israeli manufacturer of advanced flex-rigid circuitry solutions, today announced its financial results for the third quarter of 2006.

Third – Quarter 2006 Financial Highlights:

–  Record revenues of $ 10.2 million, up 20% from Q3 2005.

–  Quarterly operating income of $ 598,000 up 16%

–  Quarterly net income up 24% to $ 480,000 or $ 0.07 per fully diluted share

Eltek reported revenues for the three months ended September 30, 2006 of NIS 44.1 million ($10.2 million) compared with NIS 36.6 million ($ 8.5 million) for the third quarter of 2005. The increase in revenues is attributable to new customers and new projects with existing customers, along with increased sales with respect to ongoing projects.

Net income for the third quarter totalled NIS 2.1 million ($ 480,000), or $ 0.07 per fully diluted share compared with net income of NIS 1.7 million ($ 386,000), or $ 0.06 per fully diluted share for the same quarter in 2005. The third quarter of 2006 was the Company’s eighth consecutive quarter of profitability.

First Nine Months 2006 Financial Highlights:

–  Revenues of $ 30.3 million, up 24% from comparable period in 2005.

–  Nine months operating income of $ 2 million, up 83%

–  Nine months net income up 135% to $ 1.6 million, or $ 0.23 per fully diluted share

Revenues for the nine-month period ended September 30, 2006, were NIS 130.5 million ($ 30.3 million) compared with revenues of NIS 104.9 million ($ 24.4 million) for the comparable period in 2005. 

Net income for the nine-month period ended September 30, 2006 was NIS 6.9 million ($ 1.6 million), or $ 0.23 per fully diluted share, compared with a net income of NIS 3.0 million ($ 688 thousand) or $ 0.10 per fully diluted share for the same period in 2005.

In the third quarter of 2006, Eltek had EBITDA of $ 1.2 million compared to EBITDA of $ 1.2 million in the third quarter of 2005. In the first nine months of 2006, Eltek had EBITDA of $ 3.9 million compared with EBITDA of $ 3.2 million in the same period in 2005.

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.

Arieh Reichart, President and Chief Executive Officer of Eltek, said, “Our third quarter results continued a two year string of increased revenue and profitability relative to comparable prior year quarters. New high – end PCBs customer engagements, gradually expanded production capacity and increasing production efficiency have contributed to the highest revenues in our history for the first nine months of 2006.”

Mr. Reichart added: “We currently expect a favourable shift in our revenue growth profile toward our higher margin high – end PCBs component. In order to meet the expected increase in high – end customer demand, and in light of high plant utilization rate, we carefully plan to grow our capacity and modify our production processes.

Amnon Shemer, CFO of Eltek commented: “In the third quarter we grew our quarterly operating and net income by 16% and 24%, respectively, from the corresponding quarter in 2005. During Q3 we managed our business to offset higher raw material costs and the continued devaluation of the U.S. dollar against the NIS resulting in our receiving less NIS for each dollar denominated sale, while a significant part of our expenses, primarily employee salaries, are denominated in NIS”.

“In the fourth quarter of 2006 and through the first half of 2007, we plan to continue to adjust our capacity and manufacturing processes to meet the demand for our products,”he continued. “We are investing in our facility, equipment, people and development of our supply chain. During the first nine months of 2006, we invested over $ 1.7 million in capital expenditures, including $ 643 thousand in the third quarter” he concluded.

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.. For more information, visit Eltek’s World Wide Web site at www.eltekglobal.com.

ELTEK LTD.
Consolidated Statements of Operations
(In thousands, except per share data)

Convenience
translation
 Convenience
translation
Reported amounts
 Nine months ended
September 30,
 Three months ended
September 30,
2005
(Unaudited)
NIS
 2006
(Unaudited)
NIS
 2006
(Unaudited)
U.S. $
 2005
(Unaudited)
NIS
 2006
(Unaudited)
NIS
 2006
(Unaudited)
U.S. $
 
Revenues      104,859    130,532    30,342    36,622    44,087    10,249  
   
Costs of revenues    (84,750 )  (103,594 )  (24,080 )  (28,921 )  (34,923 )  (8,118 )
   
Gross profit       20,109     26,938     6,262     7,701     9,164     2,131  
   
Research and development, net    (485 )  (494 )  (115 )  (134 )  (186 )  (43 )
Selling, general and administrative  
 Expenses    (14,417 )  (17,726 )  (4,120 )  (5,512 )  (6,406 )  (1,490 )
 
Amortization of goodwill    (447 )  -    -    (147 )  -    -  
   
Operating income       4,760     8,718     2,027     2,208     2,572     598  
   
Financial expenses, net    (2,028 )  (1,789 )  (416 )  (648 )  (529 )  (123 )
   
Income (loss) before other income, net       2,732     6,929     1,611     1,560     2,043     475  
   
Other income (expenses), net    34    31    7    58    -    -  
   
Income before taxes on income       2,766     6,960     1,618     1,618     2,043     475  
   
Taxes on income    -    -    -    -    -    -  
Income after taxes on income       2,766     6,960     1,618     1,618     2,043     475  
 
Minority share in subsidiary's net  
results    194    (13 )  (3 )  42    23    5  
   
Net income for the period       2,960     6,947     1,615     1,660     2,066     480  
   
Basic earnings per 1 ordinary share      *0.53     1.24     0.28     *0.30     0.37     0.08  
Diluted earnings per 1 ordinary share       *0.45     1.00     0.23     *0.24     0.30     0.07  
   
Weighted average share capital used to  
compute basic net earnings per share (in  
thousands)      *5,566     5,615     5,615     *5,602     5,624     5,624  
   
Weighted average share capital used to  
compute diluted net earnings per share  
(in thousands)      *6,969     6,920     6,920     *7,008     6,928     6,928  

*The implementation of Israeli Accounting standard no. 21 regarding earnings per share requires restatement of accordance with the new standard.

Eltek Ltd.
Consolidated Condensed Balance Sheets
(In thousands)

Convenience
translation
December
31,
 September
30,
 September
30,
 September
30,
Reported amounts
 2005
(Audited)
NIS
 2005
(Unaudited)
NIS
 2006
(Unaudited)
NIS
 2006
(Unaudited)
US$
 
Assets                    
   
Current assets   
   
Cash and cash equivalents    7,258    1,749    6,781    1,576  
Receivables: Trade    22,743    28,100    32,297    7,507  
                       Other    2,173    2,676    1,349    313  
Inventories    16,051    15,822    16,969    3,882  
Prepaid expenses    986    1,417    1,612    375  
   
Total current assets     49,211    49,764    58,738    13,653  
   
Deferred taxes     697    708    697    162  
   
Property and equipment, net     32,969    30,617    33,895    7,879  
   
Goodwill     3,735    3,938    3,743    870  
   
Total assets     86,612    85,027    97,073    22,564  
   
Liabilities and Shareholder's equity   
   
Short-term credit and current maturities  
of long-term debts    17,561    19,460    15,263    3,548  
Trade payables    25,176    25,263    28,501    6,626  
Other liabilities and accrued expenses    10,914    10,672    12,146    2,823  
Convertible note    -    -    1,831    426  
Total current liabilities    53,651    55,395    57,741    13,423  
Long - term liabilities   
Long term debt, excluding current  
maturities    7,607    6,545    7,757    1,803  
Employee severance benefits    274    179    867    201  
   
Total liabilities     7,881    62,119    66,365    15,427  
   
Minority interests     1,547    1,594    1,598    370  
   
Convertible note     1,820    1,773    -    -  
   
Shareholder's equity   
   
Ordinary shares, NIS 0.6 par value  
Authorized 50,000,000 shares, issued  
 and outstanding 5,624,011 shares at  
September 30, 2006 and 5,602,511 shares  
at December 31, 2005    29,698    29,765    29,778    6,922  
Additional paid in capital    54,553    54,553    54,981    12,780  
Capital reserves related to loans from  
controlling shareholders    10,010    10,010    10,010    2,327  
Cumulative foreign currency translation  
adjustments    1,916    2,044    1,927    448  
   
Capital reserve    6,685    6,685    6,685    1,554  
   
Accumulated deficit    (81,216 )  (83,516 )  (74,269 )  (17,264 )
   
Total Shareholder's equity     21,713    19,541    29,112    6,767  
   
Total liabilities and shareholder's   
equity     86,612    85,027    97,073    22,564  

Non-GAAP Earnings Reconciliations
 Nine Months ended
September 30,
 Three Months ended
September 30,
2005
(Unaudited)
NIS
 2006
(Unaudited)
NIS
 2006
(Unaudited)
U.S. $
 2005
(Unaudited)
NIS
 2006
(Unaudited)
NIS
 2006
(Unaudited)
U.S. $
 
GAAP net income       2,960     6,947     1,615     1,660     2,066     480  
   
Add back items:   
 
Financial expenses, net    2,028    1,789    416    648    529    123  
 
Tax benefit    -    -    -    -    -    -  
 
Amortization of goodwill    447    -    -    147    -    -  
 
Depreciation    8,210    7,846    1,823    2,623    2,628    610  
   
Adjusted EBITDA (Non-GAAP)       13,645     16, 58 2   3,854     5,078     5,223     1,213