Eltek Reports Four-Fold Gain in Nine Month Net Income; Third Quarter EPS Hits $0.20.PETACH-TIKVA, Israel--(BUSINESS WIRE)--Feb. 24, 1997--Eltek Ltd. (NASDAQ/NMS: ELTKF), a leading Israeli manufacturer of technologically advanced circuitry solutions, today reported a more than four-fold Adj. 1. four-fold - having four units or components; "quadruple rhythm has four beats per measure"; "quadruplex wire" quadruple, quadruplex, quadruplicate, fourfold increase in net income to $1.57 million (NIS Niš or Nish (both: nēsh), city (1991 pop. 175,391), SE Serbia, on the Nišava River. An important railway and industrial center, it has industries that manufacture textiles, electronics, spirits, and locomotives. 5.1 million) or $0.48 (NIS 1.58) per share for the nine months ended December December: see month. 31, 1996, up from net income of $0.4 million (NIS 1.3 million) or $0.12 (NIS 0.39) per share in the same period in 1995. For the quarter ended December 31, 1996, Eltek posted net income of $0.7 million (NIS 2.1 million) or $0.20 (NIS 0.66) per share compared with net income of $0.6 million (NIS 2.0 million) or $0.19 (NIS 0.62) per share in the same period last year. Third quarter revenues were up 9 percent to $6.3 million (NIS 20.5 million) compared with revenues of $5.8 million (NIS 18.7 million) in the year-ago quarter. Nine month revenues reached $19.5 million (NIS 63.5 million), a 25 percent gain over revenues of $15.7 million (NIS 50.9 million) in the first nine months of 1995. Gross profit rose 53 percent to $4.0 million (NIS 13.0 million) against $2.6 million (NIS 8.5 million) last year. The interim unaudited financial statements are in NIS adjusted for the changes in the General Purchasing Power Purchasing Power 1. The value of a currency expressed in terms of the amount of goods or services that one unit of money can buy. Purchasing power is important because, all else being equal, inflation decreases the amount of goods or services you'd be able to purchase. 2. of the Israeli currency Israeli currency may refer to these three items:
At December 31, 1996, Eltek had a backlog Backlog The total value of sales orders waiting to be fulfilled. Notes: This figure is used mainly in the manufacturing industry. Increases or decreases in a company's backlog indicate the future direction of sales and earnings. of $2.8 million compared with $2.6 million at September September: see month. 30, 1996. A substantial portion of the backlog is typically scheduled for delivery within 45 days. Eltek recently completed the development and installation of a new Automatic Immersion immersion /im·mer·sion/ (i-mer´zhun) 1. the plunging of a body into a liquid. 2. the use of the microscope with the object and object glass both covered with a liquid. Gold Plating For other uses, see Gold plating (disambiguation). Gold plating is a method of depositing a thin layer of gold onto the surface of another metal, most often copper or silver, by chemical or electrochemical means. Line for gold finishing of printed circuit boards, an advance that will allow the Company to reach new market niches and expand its business with existing customers. Eltek also signed a collective agreement late in December under which its employees joined the pension fund managed by Mivtachim and the Institute for Social Security of Workers Ltd. As a consequence, the Company's liability for severance pay Severance Pay Compensation that an employer gives to someone who is about to lose their job. Notes: Severance pay is not always paid to employees. It depends on the situation in which the employee is losing their job and whether legislation requires severance to be paid. decreased by approximately NIS 1.2 million, which has been recorded in the statement of operations See Income statement. as a one-time one-time adj. 1. or one·time a. Occurring or undertaken only once: a one-time winner in 1995. b. decrease in cost of revenues and in selling, general and administrative expenses. Amir Glogau, Eltek's Chief Financial Officer, said that "the quarterly results were negatively affected by the erosion of the dollar relative to the shekel and increased pricing competition." Most of Eltek's revenues are denominated in dollars. Mr. Glogau added: "In spite of in opposition to all efforts of; in defiance or contempt of; notwithstanding. See also: Spite this, we are satisfied with our strong performance this quarter and throughout the year. We are positioned to continue our growth in the domestic market and pursue our expansion goals in new markets at the same time." In an initial public offering on January January: see month. 22, 1997, managed by Josepthal Lyon Lyon English Lyons City (pop., 1999: city, 445,452; metro. area, 1,348,932), east-central France. Located at the confluence of the Rhône and Saône rivers, it was founded as the Roman military colony Lugdunum in 43 BC (see & Ross Ross , Sir Ronald 1857-1932. British physician. He won a 1902 Nobel Prize for proving that malaria is transmitted to humans by the bite of the mosquito. , Eltek raised $7.5 million in new capital. After expenses, the net is expected to be approximately $6 million. The IPO (Initial Public Offering) The first time a company offers shares of stock to the public. While not a computer term per se, many founders, employees and insiders of computer companies have found this acronym more exciting than any tech term they ever heard. strengthens the Company's balance sheet and will allow it to repay high-interest-rate debt as well as expand its production capacity. Mr. Reichart, Eltek President, and Mr. Glogau will conduct a group conference call at 11 a.m. Eastern Time on Monday Monday: see week. , February 24. To participate, dial 913-661-0786, confirmation code 314278, several minutes prior to start. The conference also will be available for replay at 4 p.m. Eastern Time by dialing 913-661-0487, confirmation code 314285. Eltek is one of Israel's leading manufacturers of printed circuit boards, the core circuitry of most electronic devices, specializing in the high-end, most complex sector of the PCB PCB: see polychlorinated biphenyl. PCB in full polychlorinated biphenyl Any of a class of highly stable organic compounds prepared by the reaction of chlorine with biphenyl, a two-ring compound. manufacturing industry, i.e. multi-layers 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 four years, and in 1993 acquired TPC (Transaction Processing Performance Council, San Francisco, CA, www.tpc.org) An organization devoted to benchmarking transaction processing systems. In order to derive the number of transactions that can be processed in a given time frame, TPC benchmarks measure the total performance of Ltd., Israel's third largest PCB manufacturer. Certain matters discussed in this news release are forward-looking statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. that involve a number of risks and uncertainties including, but not limited to, 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 United States United States, officially United States of America, republic (2005 est. pop. 295,734,000), 3,539,227 sq mi (9,166,598 sq km), North America. The United States is the world's third largest country in population and the fourth largest country in area. Securities and Exchange Commission filings. -0-
Eltek Ltd.
Condensed Statements of Operations
(Unaudited)
Adjusted to New Israeli Shekels as of December 1996
Nine months ended Dec. 31, Nine months
1995 1996 ended
NIS NIS Dec. 31,
(in thousands) 1995
U.S. $
(in thousands)
Revenues 50,888 63,451 19,517
Costs of revenues 42,369 50,409 15,506
Gross profit 8,519 13,042 4,011
Selling, general and
administrative expenses 4,846 5,327 1,638
Amortization of goodwill 745 745 229
Operating income 2,928 6,970 2,144
Financial expenses, net 1,781 1,929 594
Income from disposal of
equipment 123 54 17
Net income for period 1,270 5,095 1,567
Net income per share 0.39 1.58 0.48
Weighted average number
of ordinary shares used
to compute net income per
ordinary share 3,231 3,231 3,231
-0-
Eltek Ltd.
Condensed Statements of Operations
(Unaudited)
Adjusted to New Israeli Shekels as of December 1996
Three months ended Dec. 31, Three months
1995 1996 ended
NIS NIS Dec. 31,
(in thousands) 1995
U.S. $
(in thousands)
Revenues 18,705 20,506 6,308
Costs of revenues 13,936 15,822 4,867
Gross profit 4,769 4,648 1,441
Selling, general and
administrative expenses 1,613 1,941 597
Amortization of goodwill 248 248 76
Operating income 2,908 2,495 768
Financial expenses, net 951 401 123
Income from disposal of
equipment 44 26 8
Net income for period 2,001 2,120 653
Net income per share 0.62 0.66 0.20
Weighted average number
of ordinary shares used
to compute net income per
ordinary share 3,231 3,231 3,231
-0-
ELTEK LTD.
Condensed Balance Sheets
(Unaudited)
Adjusted to New Israeli Shekels as of December 1996
December 31, December 31, December 31,
1995 1996 1996
NIS NIS U.S. $
(in thousands)
Assets
Current Assets
Cash and cash equivalents 194 143 44
Receivables: Trade 12,569 14,091 4,334
Other 1,454 853 262
Inventories 7,762 7,169 2,205
Total current assets 21,979 22,256 6,845
Property and equipment, net 26,344 29,024 8,928
Other assets, net 7,454 8,725 2,684
Total assets 54,777 60,005 18,457
Liabilities and Shareholders' Equity
Current liabilities
Short-term credits and current 15,632 17,314 5,326
Trade payables 17,682 17,125 5,268
Other payables and accrued
liabilities 4,565 6,184 1,902
Total current liabilities 37,879 40,623 12,496
Long-term liabilities
Long-term debt, net of current 13,872 9,591 2,950
Liability for severance pay 2,028 1,158 356
Total liabilities 53,779 51,372 15,802
Shareholders' equity
Share capital 22,450 22,745 6,996
Share premium 22,839 23,294 7,165
Capital reserves 14,120 13,378 4,116
Accumulated deficit (58,411) (50,784) (15,621)
Total shareholders' equity 998 8,633 2,655
Total liabilities and shareholders
equity 54,777 60,005 18,457
CONTACT: Amir Glogau Eltek Ltd. 972-3-939-5025 or Katerina Charalambous The Anne McBride Anne C. McBride (born Nova Scotia) was a frequent candidate in Canadian federal and provincial elections and by-elections in the 1970s, 1980s and 1990s. McBride was an ordained minister in the Assemblies of God, a Pentecostal Christian denomination. Co. Tel. 212-983-1702 |
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