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 September 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-______________
ELTEK LTD.
Amnon Shemer, CFO
+972-3-9395023
amnons@eltek.co.il
ELTEK LTD. REPORTS SECOND QUARTER AND FIRST HALF 2004 RESULTS
SLOWDOWN IN SECOND QUARTER HAS BEEN FOLLOWED BY A SIGNIFICANT INCREASE IN
REVENUES IN THE THIRD QUARTER
--------------------------------------------------------------------------------
PETACH-TIKVA, Israel, September 28, 2004-Eltek Ltd. (NASDAQ: ELTK), the leading
Israeli manufacturer of advanced circuitry solutions, today announced its
results for the second quarter and the six months ended June 30, 2004.
Eltek reported revenues for the six-month period ended June 30, 2004, of NIS
57.4 million ($12.8 million) compared with revenues of NIS 53.6 million ($11.9
million) for the comparable period in 2003.
Net loss for the six-month period ended June 30, 2004 was NIS 6.8 million ($1.5
million), or NIS 1.64 per NIS 1 par value of shares ($ 0.36), compared with a
net loss of NIS 6.2 million ($1.4 million) or NIS 2.11 per NIS 1 par value of
shares ($ 0.47) for the same period in 2003.
Revenues for the three months ended June 30, 2004 were NIS 27.1 million ($6.0
million) compared with NIS 25.5 million ($5.7 million) during the second quarter
of 2003. Net loss for the quarter totaled NIS 4.3 million ($952,000), or NIS
1.03 per NIS 1 par value of shares ($0.23) compared with a net loss of NIS 2.5
million ($566,000), or NIS 0.94 per diluted NIS 1 par value of shares ($0.21)
for the second quarter of 2003.
Revenues for the quarter ended March 31, 2004 were NIS 30.3 million ($6.7
million) compared to NIS 28.1 million ($6.2 million) for the quarter ended March
31, 2003. Net loss for the first quarter of 2004 was NIS 2.6 million ($570,000),
or NIS 0.61 per NIS 1 par value of shares ($0.14), compared to a net loss of NIS
3.6 million ($810,000), or NIS 1.25 per NIS 1 par value of shares ($0.28), for
the corresponding period last year.
"Since the end of second quarter we have experienced a significant increase in
purchase orders from our customers for flex-rigid printed circuit boards
pursuant to long term projects. These orders are in line with our strategic
plans to focus on this lucrative niche and will present a positive change
following the slowdown of the second quarter," commented Arieh Reichart,
President and Chief Executive Officer of Eltek. "I am particularly encouraged by
the continued increase in our international operations and by the number of
projects from new customers. It seems that the decline in revenues we
experienced in the second quarter is part of the price we paid for shifting the
Company's product mix towards flex-rigid boards and increasing our international
operations," added Mr. Reichart.
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.
ELTEK LTD.
CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except per share data)
CONVENIENCE CONVENIENCE
TRANSLATION TRANSLATION
------- -------
SIX MONTHS ENDED THREE MONTHS ENDED
JUNE 30, JUNE 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 53,572 57,416 12,768 25,496 27,102 6,026
Costs of revenues (51,248) (52,825) (11,747) (24,367) (26,061) (5,794)
------- ------- ------- ------- ------- -------
Gross profit 2,324 4,591 1,021 1,129 1,041 232
Research and development, net 18 - - - - -
Selling, general and administrative
expenses (7,608) (9,176) (2,040) (3,519) (4,547) (1,011)
Amortization of goodwill (254) (294) (65) (127) (147) (33)
------- ------- ------- ------- ------- -------
Operating loss (5,520) (4,879) (1,084) (2,517) (3,653) (812)
Financial income (expenses), net (445) (1,816) (404) 28 (664) (148)
------- ------- ------- ------- ------- -------
Loss before other income (expenses),
net (5,965) (6,695) (1,488) (2,489) (4,317) (960)
Other income (expenses), net 29 (184) (41) 24 (86) (19)
------- ------- ------- ------- ------- -------
Loss before taxes on income (5,936) (6,879) (1,529) (2,465) (4,403) (979)
Taxes on income (183) - - (59) 55 12
------- ------- ------- ------- ------- -------
Net loss after taxes on income (6,119) (6,879) (1,529) (2,524) (4,348) (967)
Minority share in subsidiary's net
results (68) 38 8 (22) 69 15
------- ------- ------- ------- ------- -------
Net loss for the period (6,187) (6,841) (1,521) (2,546) (4,279) (952)
======= ======= ======= ======= ======= =======
Basic loss per NIS 1 par value of the
share capital*** (2.11) (1.64) (0.36) (0.87) (1.03) (0.23)
======= ======= ======= ======= ======= =======
Total par value of shares used to
compute basic net loss per NIS 1 par
value of share 2,932 4,131 4,131 2,932 4,131 4,131
======= ======= ======= ======= ======= =======
Diluted loss per NIS 1 par value of the
share capital*** (2.11) (1.64) (0.36) (0.94) (1.03) (0.23)
======= ======= ======= ======= ======= =======
Total par value of shares used to compute
compute diluted net loss per NIS 1 par
value of share 2,932 4,131 4,131 3,201 4,131 4,131
======= ======= ======= ======= ======= =======
* 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.
*** Ordinary shares of a par value of NIS 0.6 each.
ELTEK LTD.
CONSOLIDATED CONDENSED BALANCE SHEETS
CONVENIENCE
TRANSLATION
-------
JUNE 30, JUNE 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 3,255 4,710 1,047
Receivables: Trade 24,888 18,786 4,178
Other 1,973 953 212
Inventories 12,051 13,004 2,892
Prepaid expenses 1,003 843 187
------- ------- -------
TOTAL CURRENT ASSETS 43,170 38,296 8,516
------- ------- -------
PROPERTY AND EQUIPMENT, NET 47,871 37,201 8,272
------- ------- -------
GOODWILL 4,626 4,621 1,028
------- ------- -------
TOTAL ASSETS 95,667 80,118 17,816
======= ======= =======
LIABILITIES AND SHAREHOLDER'S EQUITY
CURRENT LIABILITIES
Short-term credit and current maturities of long-term debts 17,053 21,235 4,722
Trade payables 25,091 21,214 4,717
Other liabilities and accrued expenses 8,768 9,808 2,181
------- ------- -------
TOTAL CURRENT LIABILITIES 50,912 52,257 11,620
------- ------- -------
LONG- TERM LIABILITIES
Long term debt, excluding current maturities 17,236 10,123 2,251
Employee severance benefits 922 988 220
------- ------- -------
TOTAL LIABILITIES 69,070 63,368 14,091
------- ------- -------
MINORITY INTERESTS 1,901 1,909 425
------- ------- -------
CONVERTIBLE DEBENTURE NOTE - 1,532 341
------- ------- -------
SHAREHOLDER'S EQUITY
Ordinary shares, NIS 0.6 par value. Authorized 50,000,000 shares,
issued and outstanding 5,491,711 shares at June 30, 2004 and
4,885,651 shares at June 30, 2003 29,334 29,698 6,604
Additional paid in capital 51,985 52,500 11,674
Capital reserves related to loans from controlling shareholders 10,010 10,010 2,226
Cumulative foreign currency translation adjustments 503 1,878 418
Capital reserve 6,685 6,685 1,487
Accumulated deficit (73,821) (87,462) (19,450)
------- ------- -------
TOTAL SHAREHOLDER'S EQUITY 24,696 13,309 2,959
------- ------- -------
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY 95,667 80,118 17,816
======= ======= =======
* 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.
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: September 28, 2004