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 2004
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
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Arieh Reichart
President and Chief Executive Officer
Date: November 26, 2004
ELTEK LTD.
Amnon Shemer, CFO
+972-3-9395023
amnons@eltek.co.il
ELTEK LTD. REPORTS THIRD QUARTER AND NINE MONTHS 2004 RESULTS
20 PERCENT INCREASE IN REVENUES OVER PREVIOUS QUARTER
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PETACH-TIKVA, Israel, November 25, 2004 - Eltek Ltd. (NASDAQ: ELTK), the leading
Israeli manufacturer of advanced circuitry solutions, today announced its
results for the third quarter and the nine months ended September 30, 2004.
HIGHLIGHTS FOR THE QUARTER:
* Increased revenues, both sequentially and year - over - year
* Gross margin improvement
* Decrease in net loss
* Increase in flex-rigid printed circuits board production pursuant to
long-term projects
* Increase in contribution of revenues generated outside of Israel
Eltek reported revenues for the three months ended September 30, 2004 of NIS
32.6 million ($7.3 million) compared with NIS 27.1 million ($6 million) during
the third quarter of 2003.
Net loss for the third quarter totaled NIS 933,000 ($208,000), or NIS 0.22 per
NIS 1 par value of shares ($0.05) compared with a net loss of NIS 3.1 million
($700,000), or NIS 0.75 per NIS 1 par value of shares ($0.17) for the same
quarter in 2003.
Revenues for the nine months ended September 30, 2004, were NIS 90 million
($20.1 million) compared with revenues of NIS 80.7 million ($18 million) for the
comparable period in 2003.
Net loss for the nine months ended September 30, 2004 was NIS 7.8 million ($1.7
million), or NIS 1.85 per NIS 1 par value of shares ($ 0.41), compared with a
net loss of NIS 9.3 million ($2.1 million) or NIS 2.79 per NIS 1 par value of
shares ($ 0.62) for the same period in 2003.
"We are committed to our strategy of shifting the Company's product mix towards
higher margin flex-rigid boards along with increasing our international
operations," commented Arieh Reichart, President and Chief Executive Officer of
Eltek. "Our focused execution of this strategy has already started to bear
fruits as reflected in our third quarter results."
"I am encouraged with the increased proportion of flex - rigid boards' revenues,
as evident in our gross margin expansion, as well as with the growing
contribution of our international operations. Based on the response we are
receiving from our customers, we see that our remarkable technological
capabilities have positioned Eltek as a leading player in the flex-rigid board
niche. We look forward to capitalizing on these advantageous trends in the
coming quarters," he added.
Amnon Shemer, CFO of Eltek commented: "We are particularly encouraged with the
fact that after a period of heavy losses, the Company is close to reaching its
break-even point."
"Our improved quarterly financial performance benefited from the increased
proportion of purchase orders pursuant to long term projects. These orders tend
to be supplied on a weekly basis over some period of time, contributing to our
production efficiency as well as to our overall corporate productivity," added
Mr. Shemer
About the Company
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. 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.
ELTEK LTD.
CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except per share data)
CONVENIENCE CONVENIENCE
TRANSLATION TRANSLATION
------- -------
NINE MONTHS ENDED THREE MONTHS ENDED
SEPTEMBER 30, SEPTEMBER 30,
----------------------------------- -----------------------------------
2003 2004 2004 2003 2004 2004
NIS NIS U.S. $ NIS NIS U.S. $
(UNAUDITED) (UNAUDITED) (UNAUDITED) (UNAUDITED) (UNAUDITED) (UNAUDITED)
------- ------- ------- ------- ------- -------
**ADJUSTED *REPORTED *REPORTED **ADJUSTED *REPORTED *REPORTED
AMOUNTS AMOUNTS AMOUNTS AMOUNTS AMOUNTS AMOUNTS
------- ------- ------- ------- ------- -------
Revenues 80,656 89,985 20,077 27,086 32,569 7,267
Costs of revenues (76,323) (81,605) (18,207) (25,077) (28,780) (6,422)
------- ------- ------- ------- ------- -------
Gross profit 4,333 8,380 1,870 2,009 3,789 845
Research and development, net 18 - - - - -
Selling, general and administrative
expenses (11,421) (13,219) (2,949) (3,814) (4,043) (902)
Amortization of goodwill (407) (441) (98) (153) (147) (33)
------- ------- ------- ------- ------- -------
Operating loss (7,477) (5,280) (1,177) (1,958) (401) (90)
Financial expenses, net (1,874) (2,490) (556) (1,429) (674) (150)
------- ------- ------- ------- ------- -------
Loss before other income (expenses),
net (9,351) (7,770) (1,733) (3,387) (1,075) (240)
Other income (expenses), net 163 (116) (26) 134 68 15
------- ------- ------- ------- ------- -------
Loss before taxes on income (9,188) (7,886) (1,759) (3,253) (1,007) (225)
Taxes on income (101) - - 83 - -
------- ------- ------- ------- ------- -------
Net loss after taxes on income (9,289) (7,886) (1,759) (3,170) (1,007) (225)
Minority share in subsidiary's net
results (37) 112 25 31 74 17
------- ------- ------- ------- ------- -------
Net loss for the period (9,326) (7,774) (1,734) (3,139) (933) (208)
======= ======= ======= ======= ======= =======
Basic and diluted loss per NIS 1 par
value of the share capital*** (2.79) (1.85) (0.41) (0.75) (0.22) (0.05)
======= ======= ======= ======= ======= =======
Total par value of shares used to
compute basic and diluted net loss per
NIS 1 par value of share 3,332 4,131 4,131 4,132 4,131 4,131
======= ======= ======= ======= ======= =======
* With respect to to discontinuance of adjustment for effect
of inflation as from CPI of December 2003.
** Amounts adjusted to the effect of inflation in terms of NIS of December
2003.
*** Ordinary shares of a par value of NIS 0.6 each.
ELTEK LTD.
CONSOLIDATED CONDENSED BALANCE SHEETS
CONVENIENCE
TRANSLATION
-------
SEPTEMBER 30, SEPTEMBER 30,
--------------------- -------
2003 2004 2004
UNAUDITED UNAUDITED UNAUDITED
NIS NIS U.S. $
------- ------- -------
**ADJUSTED *REPORTED *REPORTED
AMOUNTS AMOUNTS AMOUNTS
------- ------- -------
(IN THOUSANDS)
ASSETS
CURRENT ASSETS
Cash and cash equivalents 4,193 4,570 1,020
Receivables: Trade 20,483 22,380 4,993
Other 1,825 927 207
Inventories 12,086 12,545 2,799
Prepaid expenses 613 943 210
------- ------- -------
TOTAL CURRENT ASSETS 39,200 41,365 9,229
------- ------- -------
PROPERTY AND EQUIPMENT, NET 45,296 34,215 7,634
------- ------- -------
GOODWILL 4,779 4,524 1,009
------- ------- -------
TOTAL ASSETS 89,275 80,104 17,872
======= ======= =======
LIABILITIES AND SHAREHOLDER'S EQUITY
CURRENT LIABILITIES
Short-term credit and current maturities of long-term debts 19,718 20,838 4,649
Trade payables 20,763 23,432 5,228
Other liabilities and accrued expenses 7,305 10,238 2,284
------- ------- -------
TOTAL CURRENT LIABILITIES 47,786 54,508 12,161
------- ------- -------
LONG- TERM LIABILITIES
Long term debt, excluding current maturities 14,043 8,637 1,927
Employee severance benefits 1,014 1,057 236
------- ------- -------
TOTAL LIABILITIES 62,843 64,202 14,324
------- ------- -------
MINORITY INTERESTS 1,985 1,855 414
------- ------- -------
CONVERTIBLE DEBENTURE NOTE 2,261 1,566 349
------- ------- -------
SHAREHOLDER'S EQUITY
Ordinary shares, NIS 0.6 par value. Authorized 50,000,000 shares, issued
and outstanding 5,491,711 shares at September 30, 2004 and
4,885,651 shares at September 30, 2003 29,334 29,698 6,626
Additional paid in capital 51,985 52,500 11,714
Capital reserves related to loans from controlling shareholders 10,010 10,010 2,233
Cumulative foreign currency translation adjustments 1,132 1,983 442
Capital reserve 6,685 6,685 1,492
Accumulated deficit (76,960) (88,395) (19,722)
------- ------- -------
TOTAL SHAREHOLDER'S EQUITY 22,186 12,481 2,785
------- ------- -------
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY 89,275 80,104 17,872
======= ======= =======
* With respect to discontinuance of adjustment for the effect of inflation as
from CPI of December 2003.
** Amounts adjusted to the effect of inflation in terms of NIS of December
2003.