PETACH TIKVA, Israel, Aug. 15, 2024 /PRNewswire/ -- Eltek Ltd. (NASDAQ:ELTK), a global manufacturer and supplier of technologically advanced solutions in the field of printed circuit boards (PCBs), today announced its financial results for the quarter ended June 30, 2024.     Second Quarter 2024 Highlights Revenues were $10.5 million Operating profit was $0.4 million Profit before tax was $0.9 million Net income was $0.8 million or $0.11 per fully diluted share As of June 30, 2024 cash and cash equivalents amounted $18.3 million. "Eltek has demonstrated consistent growth over the past several quarters, driven by our commitment to innovation and customer satisfaction. However, this quarter, we experienced a decrease in revenues and profits compared to the previous quarter and the corresponding quarter last year. This decline is attributed to a significant timing shift by some key customers, who prioritized orders for PCBs with medium technology requirements, resulting in lower prices and margins. Orders for more complex, higher-margin PCBs were pushed back and are scheduled to be produced in the third quarter. While this has impacted our short-term financial performance, we remain confident in our long-term strategy and market position," said Eli Yaffe, CEO of Eltek.  "We expect to return in in the third quarter to the profitability parameters of previous quarters, as product mix strategies are realigned. Our backlog as of today increased by 30% since the beginning of 2024. This increase will support our planned growth in revenues and profitability. We remain committed to delivering value to our shareholders and are taking the necessary steps to ensure that we continue our growth trend. Our team is focused on optimizing our product offerings and operational efficiencies to drive profitability and sustain our market leadership," concluded Mr. Yaffe. Second Quarter 2024 GAAP Financial Results Revenues for the second quarter of 2024 were $10.5 million compared to $11.0 million in the second quarter of 2023. Gross profit for the second quarter of 2024 was $1.6 million (16% of revenues) compared to $3.0 million (27% of revenues) in the second quarter of 2023. Operating profit for the second quarter of 2024 was $0.4 million compared to operating profit of $1.4 million in the second quarter of 2023. Financial income for the second quarter of 2024 was $0.5 million compared to financial income of $0.2 million in the second quarter of 2023. Financial income primarily results from the erosion of the NIS against the US dollar. Profit before income tax for the second quarter of 2024 was $0.9 million compared to $1.6 million in the second quarter of 2023. Net income for the second quarter of 2024 was $0.8 million or $0.11 per fully diluted share compared to net income of $1.3 million or $0.22 per fully diluted share in the second quarter of 2023. Second Quarter 2024 Non-GAAP Financial Results EBITDA for the second quarter of 2024 was $0.8 million (7.6% of revenues) compared to EBITDA of $1.7 million (15.3% of revenues) in the second quarter of 2023; First Six Months 2024 GAAP Financial Results Revenues for the first six months of 2024 were $22.2 million compared to $22.5 million in the first six months of 2023. Gross profit for the first six months of 2024 was $4.9 million (22% of revenues) compared to $6.0 million (26% of revenues) in the first six months of 2023. Operating profit for the first six months of 2024 was $2.1 million compared to operating profit of $3.0 million in the first six months of 2023. Financial income for the first six months of 2024 was $0.8 million compared to financial income of $0.5 million in the first six months of 2023. Financial income primarily results from the erosion of the NIS against the US dollar. Profit before income tax for the first six months of 2024 was $3.0 million compared to $3.5 million in the first six months of 2023. Net profit for the first six months of 2024 was $2.5 million or $0.38 per fully diluted share compared to net profit of $2.9 million or $0.49 per fully diluted share in the first six months of 2023. First Six Months 2024 Non-GAAP Financial Results EBITDA for the first six months of 2024 was a $2.9 million (13% of revenues) compared to EBITDA of $3.6 million (16% of revenues) in the first six months of 2023. About our Non-GAAP Financial Information The Company reports financial results in accordance with U.S. GAAP and herein provides some non-GAAP measures, including EBITDA. These non-GAAP measures are not in accordance with, nor are they a substitute for, GAAP measures. These non-GAAP measures are intended to supplement the Company's presentation of its financial results that are prepared in accordance with GAAP. The Company uses the non-GAAP measures presented to evaluate and manage the Company's operations internally. The Company is also providing this information to assist investors in performing additional financial analysis. Reconciliation between the Company's results on a GAAP and non-GAAP basis is provided in the table below. Conference Call Today, Thursday, August 15, 2024, at 9:30am Eastern Time (16:30pm Israel Time, 6:30am Pacific Time), Eltek will conduct a conference call to discuss the results. The call will feature remarks by Eli Yaffe, Chief Executive Officer and Ron Freund, Chief Financial Officer. To participate, please call the following teleconference numbers. Please allow for additional time to connect prior to the call: United States: 1-866-860-9642 Israel: 03-918-0691 International: +972-3-918-0691 To Access a Replay of the Call A replay of the call will be available for 30 days on the Investor Info section on Eltek's corporate website at http://www.nisteceltek.com approximately 24 hours after the conference call is completed. About Eltek Eltek – "Innovation Across the Board", is a global manufacturer and supplier of technologically advanced solutions in the field of printed circuit boards (PCBs), and is an Israeli leading company in this industry. PCBs are the core circuitry of most electronic devices. Eltek specializes in the manufacture and supply of complex and high quality PCBs, HDI, multilayered and flex-rigid boards for the high-end market. Eltek is ITAR compliant and has AS-9100 and NADCAP Electronics certifications. Its customers include leading companies in the defense, aerospace and medical industries in Israel, the United States, Europe and Asia. Eltek was founded in 1970. The Company's headquarters, R&D, production and marketing center are located in Israel. Eltek also operates through its subsidiary in North America and by agents and distributors in Europe, India, South Africa and South America. For more information, visit Eltek's web site at www.nisteceltek.com Forward Looking Statement Some of the statements included in this press release may be forward-looking statements that involve a number of risks and uncertainties including, but not limited to expected results in future quarters, the impact of the Coronavirus on the economy and our operations, 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 Annual Report on Form 20-F and other filings with the United States Securities and Exchange Commission. Any forward-looking statements set forth in this press release speak only as of the date of this press release. The information found on our website is not incorporated by reference into this press release and is included for reference purposes only. Logo: https://mma.prnewswire.com/media/881148/Eltek_Logo.jpg Investor Contact Ron FreundChief Financial     Eltek Ltd. Consolidated Statements of Income U.S dollars in thousands (except per share data) Three months ended Six months ended June 30, June 30, 2024 2023 2024 2023 Revenues 10,466 11,043 22,249 22,513 Costs of revenues (8,830) (8,091) (17,361) (16,546) Gross profit 1,636 2,952 4,888 5,967 Research and development expenses, net (47) (15) (62) (24) Selling, general and administrative expenses (1,184) (1,543) (2,700) (2,960) Operating profit 405 1,394 2,126 2,983 Financial income, net 489 190 839 477 Income before income tax  894 1,584 2,965 3,460 Income tax expenses 143 271 475 585 Net income  751 1,313 2,490 2,875 Earnings per share: Basic and diluted net profit per ordinary share 0.11 0.22 0.38 0.49 Weighted average number of ordinary shares used to compute basic net profit per ordinary share (in thousands) 6,706 5,908 6,541 5,879 Weighted average number of ordinary shares used to compute diluted net profit per ordinary share (in thousands) 6,764 5,943 6,628 5,897