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 2002
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.
6-K Items
1. Eltek Ltd. press release dated November 21, 2002.
ITEM 1
Press Release Source: Eltek Ltd.
Eltek Ltd. Reports Results for the Third Quarter and First Nine Months of 2002
Thursday November 21, 7:54 am ET
PETACH-TIKVA, Israel, Nov. 21 /PRNewswire-FirstCall/ -- Eltek Ltd. (Nasdaq: ELTK
- News), the leading Israeli manufacturer of advanced circuitry solutions, today
announced results for the third quarter and nine months ended September 30,
2002.
Eltek reported revenues for the three months ended September 30, 2002 of NIS
26.0 million ($5.3 million), compared with NIS 28.4 million ($5.8 million)
during the second quarter of 2002, and NIS 26.0 million ($5.3 million) during
the third quarter of 2001. Net loss for the quarter totaled NIS 6.8 million
($1.4 million), or NIS 1.40 per basic and diluted share ($0.29), compared with a
net loss of NIS 1.1 million ($229,000), or NIS 0.23 per basic and NIS 0.26 per
diluted share ($0.05), for the second quarter of 2002, and a net loss of NIS 1.3
million ($274,000), or NIS 0.28 per basic and diluted share ($0.06), for the
quarter ended September 30, 2001.
For the nine-month period ended September 30, 2002, the Company reported
revenues of NIS 82.6 million ($17.0 million), compared with revenues of NIS 92.7
million ($19.0 million) for the comparable period in 2001.
Net loss for the nine-month period ended September 30, 2002 was NIS 9.1 million
($1.9 million), or NIS 1.86 ($0.38) per basic and diluted share, compared with
net income of NIS 4.6 million ($948,000) or NIS 0.95 ($0.20) per basic and
diluted share for the same period in 2001.
The Company noted that the results for the third quarter of 2002 reflect those
of both Eltek and its Kubatronik subsidiary. Eltek completed an acquisition of
75% of Kubatronik in June 2002.
In announcing the results, Arieh Reichart, President and Chief Executive Officer
of Eltek said, "Although the global market for electronic components remains
extremely weak, we continue to work diligently to pursue all potential sales
opportunities. We have seen continued interest in the marketplace for our
products, although the timing for orders remains uncertain. To address the
current market environment we have determined it was necessary to better align
our operating structure to our anticipated lower level of activity as well as
better position the company for growth and profitability as the market recovers.
To that end, following the conclusion of the third quarter, we initiated a cost
cutting program which includes a company-wide reduction in salaries of up to 10%
per employee, in addition to reductions in several other areas, including
outsourcing. While this was a difficult decision, we feel that these measures
will decrease our operating expenses to bring them more in line with the market,
and feel that these changes leave us better positioned to benefit from an upturn
in the market.
"Given the short turnaround time that is customary in our business, it is
difficult to provide formal guidance going forward. We do however believe that
the results of the third quarter represent somewhat of an aberration, as
seasonal factors played a part in our results for the quarter. July and August
were particularly weak in Europe as a result of customer down time. We do not
feel that these results accurately reflect the underlying strength of our
business."
TELECONFERENCE: Eltek will hold a teleconference at 10:00 a.m. EST on Thursday,
November 21, 2002 for interested investors, analysts, and stockbrokers. To take
part in the teleconference, please dial 888-858-4066 the U.S. and 973-935-2101
internationally. Participants are asked to begin placing their calls about 5 to
10 minutes prior to the scheduled start time. For those unable to participate, a
replay will be available from 12:00 p.m. EST on November 21, 2002, through 11:59
p.m. EST on November 23, 2002. To access the replay, please dial: 877-519-4471
in the U.S. and 973-341-3080 internationally. The access code for the replay is
3598197. The call will also be available as a listen-only webcast at
www.kcsa.com.
About Eltek
Eltek is one of 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.
o (Tables to Follow)
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
United States Securities and Exchange Commission filings.
You may register to receive Eltek's future press releases or to download a
complete Digital Investor Kit TM including press releases, regulatory filings
and corporate materials by clicking on the "KCSA Interactive Platform" icon at
www.kcsa.com.
Eltek Ltd.
Consolidated Statements of Operations
Adjusted to New Israeli Shekels as of September 2002
(In thousands, except per share data)
Convenience Convenience
translation translation
Nine months ended Three months ended
September 30, September 30,
2001 2002 2002 2001 2002 2002
NIS NIS U.S. $ NIS NIS U.S. $
(Un- (Un- (Un- (Un- (Un- (Un-
audited) audited) audited) audited) audited) audited)
Revenues 92,676 82,623 16,962 26,032 26,034 5,345
Costs of
revenues 76,204 79,363 16,292 24,423 27,381 5,622
Gross profit
(loss) 16,472 3,260 670 1,609 (1,347) (277)
Research and
development
costs, net 407 119 24 44 -- --
Selling,
general
and
administrative
expenses 11,016 11,100 2,279 3,506 4,006 822
Amortization
of goodwill -- 159 33 -- 159 33
Operating
income
(loss) 5,049 (8,118) (1,666) (1,941) (5,512) (1,132)
Financial
expenses,
net 1,164 766 157 181 1,090 224
Income (loss)
before other
income
(expenses) 3,885 (8,884) (1,823) (2,122) (6,602) (1,356)
Other incomes
(expenses),
net 735 (7) (1) 788 (15) (3)
Income (loss)
before taxes
on income 4,620 (8,891) (1,824) (1,334) (6,617) (1,359)
Taxes on income -- 96 20 -- 142 29
Net income
(loss) after
taxes on
income 4,620 (8,987) (1,844) (1,334) (6,759) (1,388)
Minority
share of
subsidiary
net income -- 120 25 -- 60 12
Net income
(loss) for
the period 4,620 (9,107) (1,869) (1,334) (6,819) (1,400)
Basic and
diluted
earnings
(loss) per
ordinary
share 0.95 (1.86) (0.38) (0.28) (1.40) (0.29)
Diluted
earnings
(loss) per
ordinary
share 1.20 (0.47) (0.10) 0.19 (0.26) (0.05)
Weighted
average
number of
ordinary
shares used
to compute
basic and
diluted
earnings
(loss) per
ordinary
share 4,855 4,886 4,886 4,855 4,886 4,886
Eltek Ltd.
Consolidated Condensed Balance Sheets
Adjusted to New Israeli Shekels as of September 2002
September 30, September 30,
2001 2002 2002
Unaudited Unaudited Unaudited
NIS NIS U.S. $
(in thousands)
Assets
Current assets
Cash and cash equivalents 7,411 10,613 2,179
Receivables: Trade 23,279 25,775 5,291
Other 2,690 791 162
Inventories 14,404 13,238 2,718
Prepaid expenses 1,360 925 190
Total current assets 49,144 51,342 10,540
Property and equipment, net 56,698 57,066 11,715
Other assets
Goodwill -- 5,025 1,032
Investments in non-marketable
equity securities 12 -- --
Total other assets 12 5,025 1,032
Total assets 105,854 113,433 23,287
Liabilities and Shareholder's equity
Current liabilities
Short-term credit and current
installments of long-term debts 16,930 22,622 4,644
Trade payables 16,318 19,246 3,951
Other liabilities and accrued
expenses 7,783 9,513 1,953
Total current liabilities 41,031 51,381 10,548
Long- term liabilities
Long term debt, excluding
current installments 15,037 20,841 4,279
Employee severance benefits 1,063 974 200
Total liabilities 57,131 73,196 15,027
Minority interests -- 2,024 416
Shareholder's equity
Ordinary shares, NIS 0.6 par
value. Authorized 50,000,000
shares, issued and outstanding
4,885,651 and 4,850,151, in
2002 and 2001 respectively 30,013 30,036 6,166
Additional paid in capital *53,059 53,229 10,928
Capital reserves related to
loans from controlling
shareholders 10,249 10,249 2,104
Cumulative foreign currency
translation adjustments -- 123 25
Capital reserve 6,845 6,845 1,405
Accumulated deficit (51,443) (62,269) (12,784)
Total shareholder's equity 48,723 38,213 7,844
Total liabilities and
shareholders' equity 105,854 113,433 23,287
* Reclassified
[GRAPHIC OMITTED]
Source: Eltek Ltd.
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: November 21, 2002