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 August 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: August 16, 2006

ELTEK Ltd.

Amnon Shemer, CFO

+972-3-9395023

amnons@eltek.co.il

Eltek Announces Record Second-Quarter 2006 Financial Results with 338% Net Income Growth and 27% Revenue Growth

  — Quarterly revenues rise 27% year-over-year to $9.7 million on strong organic growth
  — Quarterly EPS up 360% to $ 0.06 per fully diluted share
  — Quarterly net income rises 338% to $ 456,000 - seventh consecutive quarter of profitability

PETACH-TIKVA, Israel, August 16, 2006 (BUSINESS WIRE) – Eltek Ltd., the leading Israeli manufacturer of advanced flex-rigid circuitry solutions, today announced its financial results for the second quarter of 2006.

Second – Quarter 2006 Financial Highlights:

– Revenues of $ 9.7 million, up 27%.

– Quarterly operating income of $ 563,000, up 126%

– Quarterly net income up 338% to $ 456,000, or $ 0.06 per fully diluted share

– EBITDA of $ 1.2 million in Q2 2006 compared to EBITDA of $ 917,000 in Q2 2005

Eltek reported revenues for the three months ended June 30, 2006 of NIS 43.1 million ($ 9.7 million) compared with NIS 33.8 million ($ 7.6 million) for the second quarter of 2005. The increase in revenues is attributed to obtaining new customers and new projects with existing customers, along with increased sales for existing projects.

Net income for the second quarter totalled NIS 2.0 million ($ 456,000), or $ 0.06 per fully diluted share compared with net income of NIS 461,000 ($ 103,000), or $ 0.01 per fully diluted share for the same quarter in 2005. The second quarter of 2006 was the Company’s seventh consecutive quarter of profitability.

First Six Months 2006 Financial Highlights:

– Revenues of $ 19.5 million, up 27%.

– Six months operating income of $ 1.4 million, up 140%

– Six months net income up 275% to $ 1.1 million, or $ 0.16 per fully diluted share

– EBITDA of $ 2.6 million in compared to EBITDA of $ 1.9 million in 2005

Revenues for the six-month period ended June 30, 2006, were NIS 86.4 million ($ 19.5 million) compared with revenues of NIS 68.2 million ($ 15.4 million) for the comparable period in 2005. 

Net income for the six-month period ended June 30, 2006 was NIS 4.9 million ($ 1.1 million), or $ 0.16 per fully diluted share, compared with a net income of NIS 1.3 million ($ 292 thousand) or $ 0.04 per fully diluted share for the same period in 2005.

In the second quarter of 2006, Eltek had EBITDA of $ 1.2 million compared to EBITDA of $917,000 in the second quarter of 2005. In the first six months of 2006, Eltek had EBITDA of $ 2.6 million compared with EBITDA of $ 1.9 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, commented: “Eltek continues to deliver increasing quarterly sales and earnings, and we managed to accelerate our overall growth rate in a quarter that traditionally has the least number of working days.”

“During the last part of the second quarter and into Q3, we have made further progress towards ramping up the incremental revenue contribution of our emerging U.S. flex – rigid PCB activity. An example is win we previously announced with a major U.S. industrial company for the serial production of flex – rigid PCBs “ he concluded.

Amnon Shemer, CFO of Eltek commented: “We delivered the best second quarter in Eltek’s history and we grew our quarterly operating and net income by 126% and 338%, respectively, from the corresponding quarter in 2005. We managed to increase our net income although we faced two major challenges: an increase in raw material costs arising from the increase in oil and metal prices world-wide, and a devaluation of the U.S. dollar against the NIS resulting in our receiving less NIS for each dollar nominated sales.”

“With expansion of high – end production capacity proceeding on schedule, we are well prepared to meet the ramp-up in demand for our flex-rigid PCBs. These incremental higher margin revenue streams will play a significant role in our overall progress towards reaching new levels of revenue, net income and cash flows” 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
 Six months ended
June 30,
 Three months ended
June 30,
2005
(Unaudited)
NIS
 2006
(Unaudited)
NIS
 2006
(Unaudited)
U.S. $
 2005
(Unaudited)
NIS
 2006
(Unaudited)
NIS
 2006
(Unaudited)
U.S. $
 
Revenues      68,237    86,445    19,469    33,842    43,080    9,703  
Costs of revenues    (55,829 )  (68,671 )  (15,466 )  (27,746 )  (34,714 )  (7,818 )
   
Gross profit       12,408     17,774     4,003     6,096     8,366     1,885  
   
Research and development, net    (351 )  (308 )  (69 )  (160 )  (151 )  (34 )
Selling, general and administrative  
 expenses    (9,205 )  (11,320 )  (2,549 )  (4,686 )  (5,721 )  (1,288 )
Amortization of goodwill    (300 )  -    -    (148 )  -  
   
Operating income       2,552     6,146     1,384     1,102     2,494     563  
   
Financial expenses, net    (1,380 )  (1,260 )  (284 )  (766 )  (501 )  (113 )
   
Income before other expenses, net       1,172     4,886     1,100     336     1,993     450  
   
Other income (expenses), net    (24 )  31    7    (13 )  41    9  
   
Income before taxes on income       1,148     4,917     1,107     323     2,034     459  
Taxes on income    -    -    -    -    -    -  
   
Income after taxes on income       1,148     4,917     1,107     323     2,034     459  
   
Minority share in subsidiary's net  
 results    152    (36 )  (8 )  138    (14 )  (3 )
   
Net income for the period       1,300     4,881     1,099     461     2,020     456  
   
Basic earnings per 1 ordinary share    *0.23    0.87    0.20    *0.08    0.36    0.08  
   
Dluted earnings per 1 ordinary share       *0.19     0.70     0.16     *0.06     0.28     0.06  
Weighted average share capital used to  
compute basic net earnings per share (in  
thousands)    *5,547    5,611    5,611    *5,603    5,614    5,614  
   
Weighted average share capital used to  
compute diluted net earnings per share  
(in thousands)    *6,949    7,023    7,023    *7,006    7,021    7,021  

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

Eltek Ltd.
Consolidated Condensed Balance Sheets
(In thousands)

Convenience
Translation
December 31,
 June 30,
 June 30,
Reported amounts
 2005
(Audited)
NIS
 2005
(Unaudited)
NIS
 2006
(Unaudited)
NIS
 2006
(Unaudited)
U.S. $
 
Assets                    
   
Current assets   
Cash and cash equivalents    4,274    2,309    6,119    1,378  
Receivables: Trade    23,835    25,249    31,958    7,198  
                       Other    1,158    1,174    1,267    285  
Inventories    13,633    13,788    16,393    3,692  
Prepaid expenses    563    1,200    1,707    384  
   
Total current assets     43,463    43,720    57,444    12,937  
   
Deferred taxes     753    708    723    163  
   
Property and equipment, net     31,569    27,155    32,334    7,282  
   
Goodwill     4,656    4,084    3,871    872  
   
Total assets     80,441    75,667    94,372    21,254  
   
Liabilities and Shareholder's equity   
   
Current liabilities   
Short-term credit and current  
maturities of long-term debts    19,589    18,830    16,139    3,635  
Trade payables    23,577    19,338    26,241    5,911  
Other liabilities and accrued  
expenses    11,083    11,317    12,193    2,746  
   
Total current liabilities     54,249    49,485    54,573    12,292  
   
Long- term liabilities   
Long term debt, excluding current  
maturities    6,687    3,815    8,237    1,855  
Employee severance benefits    1,048    1,131    694    156  
   
Total liabilities     61,984    54,431    63,504    14,303  
   
Minority interests     1,900    1,636    1,676    376  
   
Convertible note     1,566    1,720    1,844    415  
   
Shareholder's equity   
Ordinary shares, NIS 0.6 par value  
Authorized 50,000,000 shares,  
issued and outstanding 5,602,511 shares at  
June 30, 2005 and 5,491,711 shares  
at June 30, 2004 and at December  
31, 2004    29,698    29,765    29,778    6,707  
Additional paid in capital    52,500    54,553    54,981    12,383  
Capital reserves related to loans  
from controlling shareholders    10,010    10,010    10,010    2,255  
Cumulative foreign currency  
translation adjustments    2,574    2,043    2,229    502  
Capital reserve    6,685    6,685    6,685    1,506  
Accumulated deficit    (86,476 )  (85,176 )  (76,335 )  (17,193 )
   
Total shareholder's equity     14,991    17,880    27,348    6,160  
   
Total liabilities and shareholders'   
equity     80,441    75,667    94,372    21,254  

Non-GAAP
Earnings Reconcilliations		 Six Months ended
June 30,
 Three Months ended
June 30,
2005
(Unaudited)
NIS
 2006
(Unaudited)
NIS
 2006
(Unaudited)
U.S. $
 2005
(Unaudited)
NIS
 2006
(Unaudited)
NIS
 2006
(Unaudited)
U.S. $
 
GAAP net income       1,300     4,881     1,099     461     2,020     456  
Add back items:   
   
Financial expenses, net    1,380    1,260    284    766    501    113  
   
Tax benefit    -    -    -    -    -    -  
   
Amortization of goodwill    300    -    -    148    -    -  
   
Depreciation    5,587    5,218    1,174    2,699    2,615    589  
   
Adjusted EBITDA       8,567     11,359     2,557     4,074     5,136     1,158