Eltek Reports 2021 Second Quarter Financial Results

Eltek Ltd., a global manufacturer and supplier of technologically advanced solutions in the field of printed circuit boards, announced its financial results for the quarter ended June 30, 2021.

Eli Yaffe, Chief Executive Officer, commented: "We are pleased that our second quarter reflects the return to improved results. We are gratified that despite the global Covid- 19 pandemic that resulted in the short supply of various critical raw materials and the related challenges, we were able to grow our top line by 3.9% compared to the second quarter of 2020 and improve our gross margins from 21.6% in Q2 2020 to 25.9% in Q2 2021."

“We are operating in a challenging business environment these days, mainly due to the global supply chain crisis, which was not resolved yet. As previously announced, during 2021 we were impacted by the worldwide shortage of Pyralux AP, a key material produced by DuPont. During the second quarter we were able to obtain authorizations from some of our customers to use alternative raw materials.” added Mr. Yaffe.

“During the second quarter we faced price increases for some of our raw materials. In addition, some of our operating expenses are dominated in New Israeli Shekel (“NIS”) and were negatively affected due to the devaluation of the US$ against the NIS. Nevertheless these challenges, we were able to improve our gross margin in the second quarter” said Mr. Yaffe.

“We are conducting several R&D programs and making effort to become an innovative industry leader. Eltek is making the necessary operational adjustments to expand our business, improve customer satisfaction, increase revenues, maintain the trend of improved operational results,” concluded Mr. Yaffe.

Highlights of the Second Quarter of 2021 compared to the Second Quarter of 2020

• Revenues for the second quarter of 2021 were $9.1 million compared to revenues of $8.8 million in the second quarter of 2020

• Gross profit increased to $2.4 million (25.9% of revenues) in the second quarter of 2021 compared to $1.9 million (21.6% of revenues) in the second quarter of 2020

• Operating profit increased to $944,000 (10.3% of revenues) during the second quarter of 2021 as compared to operating profit of $809,000 (9.2% of revenues)in the second quarter of 2020

• Net profit was $825,000, or $0.14 per fully diluted share in the second quarter of 2021 compared to net profit of $704,000, or $0.16 per fully diluted share, in the second quarter of 2020

• EBITDA was $1.4 million in the second quarter of 2021 compared to EBITDA of $1.2 million in the second quarter of 2020;

• Net cash provided by operating activities amounted to $380,000 in the second quarter of 2021 compared to net cash provided by operating activities of $1.4 million in the second quarter of 2020

• Cash and cash equivalents as of June 30, 2021 were $9.2 million compared to $4.7 million as of December 31, 2020.

Highlights for the First Six Months of 2021

• Revenues for the first six months of 2021 were $16.3 million compared to $17.9 million in the first six months of 2020

• Gross profit was $3.5 million (21.5% of revenues) compared to gross profit of $3.7 million (20.6% of revenues) in the first six months of 2020

• Operating profit was $1.1 million compared to operating profit of $1.4 million in the first six months of 2020

• Net profit was $1.0 million, or $0.18 per fully diluted share compared to net profit of $1.2 million, or $0.28 per fully diluted share in the first six months of 2020

• EBITDA was $2.0 million in the first six months of 2021, compared to EBITDA of $2.2 million in the first six months of 2020

• Net cash provided by operating activities amounted to $2.8 million in the first six months of 2021 compared to net cash provided by operating activities of $2.9 million in the first six months of 2020