Eltek Ltd. Reports 2024 Second Quarter Financial Results
Eltek (NASDAQ: ELTK) reported its Q2 2024 financial results, showing a decline in performance compared to the previous year. Revenues decreased to $10.5 million from $11.0 million in Q2 2023. Operating profit fell to $0.4 million from $1.4 million, while net income dropped to $0.8 million ($0.11 per diluted share) from $1.3 million ($0.22 per diluted share).
The company attributed the decline to a shift in customer orders towards medium-technology PCBs, resulting in lower prices and margins. However, CEO Eli Yaffe expressed confidence in the company's long-term strategy, citing a 30% increase in backlog since the beginning of 2024 and expectations of improved profitability in Q3.
Eltek (NASDAQ: ELTK) ha pubblicato i risultati finanziari per il secondo trimestre del 2024, mostrando un calo delle prestazioni rispetto all'anno precedente. I ricavi sono scesi a 10,5 milioni di dollari rispetto agli 11,0 milioni di dollari del secondo trimestre del 2023. Il profitto operativo è diminuito a 0,4 milioni di dollari da 1,4 milioni di dollari, mentre il reddito netto è calato a 0,8 milioni di dollari (0,11 dollari per azione diluita) rispetto a 1,3 milioni di dollari (0,22 dollari per azione diluita).
La società ha attribuito il declino a un cambiamento negli ordini dei clienti verso PCB a tecnologia media, portando a prezzi e margini inferiori. Tuttavia, il CEO Eli Yaffe ha espresso fiducia nella strategia a lungo termine dell'azienda, citando un aumento del 30% del portafoglio ordini dall'inizio del 2024 e aspettative di una redditività migliorata nel terzo trimestre.
Eltek (NASDAQ: ELTK) reportó sus resultados financieros del segundo trimestre de 2024, mostrando una disminución en el rendimiento en comparación con el año anterior. Los ingresos cayeron a 10.5 millones de dólares desde 11.0 millones en el segundo trimestre de 2023. El beneficio operativo se redujo a 0.4 millones de dólares desde 1.4 millones, mientras que el ingreso neto disminuyó a 0.8 millones de dólares (0.11 dólares por acción diluida) desde 1.3 millones (0.22 dólares por acción diluida).
La empresa atribuyó la disminución a un cambio en los pedidos de los clientes hacia PCBs de tecnología media, lo que resultó en precios y márgenes más bajos. Sin embargo, el CEO Eli Yaffe expresó confianza en la estrategia a largo plazo de la empresa, citando un aumento del 30% en la cartera de pedidos desde principios de 2024 y expectativas de una mejor rentabilidad en el tercer trimestre.
엘텍( NASDAQ: ELTK)이 2024년 2분기 재무 결과를 발표하였으며, 지난해에 비해 성과가 감소하였음을 보여주었습니다. 수익은 2023년 2분기의 1,100만 달러에서 1,050만 달러로 감소하였습니다. 운영 이익은 140만 달러에서 40만 달러로 떨어졌고, 순이익은 130만 달러(주당 희석 기준 0.22달러)에서 80만 달러(주당 희석 기준 0.11달러)로 줄었습니다.
회사는 고객 주문이 중간 기술 PCB로 전환되면서 가격과 마진이 낮아진 것을 감소의 원인으로 꼽았습니다. 하지만 CEO인 Eli Yaffe는 2024년 초 이후 백로그가 30% 증가했으며 3분기에는 수익성이 개선될 것으로 예상된다고 언급하며 회사의 장기 전략에 대한 자신감을 표현했습니다.
Eltek (NASDAQ: ELTK) a publié ses résultats financiers pour le deuxième trimestre 2024, montrant une baisse de performance par rapport à l'année précédente. Les revenus ont diminué, passant de 11,0 millions de dollars au deuxième trimestre 2023 à 10,5 millions de dollars. Le bénéfice d'exploitation est tombé à 0,4 million de dollars, contre 1,4 million de dollars, tandis que le revenu net a chuté à 0,8 million de dollars (0,11 dollar par action diluée) contre 1,3 million de dollars (0,22 dollar par action diluée).
L'entreprise a attribué ce déclin à un changement dans les commandes des clients vers des PCB de technologie intermédiaire, entraînant des prix et des marges plus bas. Cependant, le PDG Eli Yaffe a exprimé sa confiance dans la stratégie à long terme de l'entreprise, citant une augmentation de 30 % du carnet de commandes depuis le début de 2024 et des attentes d'amélioration de la rentabilité au troisième trimestre.
Eltek (NASDAQ: ELTK) hat seine finanziellen Ergebnisse für das zweite Quartal 2024 veröffentlicht und einen Rückgang der Leistung im Vergleich zum Vorjahr verzeichnet. Die Einnahmen sanken von 11,0 Millionen Dollar im zweiten Quartal 2023 auf 10,5 Millionen Dollar. Der Betriebsgewinn fiel von 1,4 Millionen Dollar auf 0,4 Millionen Dollar, während der Nettogewinn von 1,3 Millionen Dollar (0,22 Dollar pro verwässerter Aktie) auf 0,8 Millionen Dollar (0,11 Dollar pro verwässerter Aktie) zurückging.
Das Unternehmen führte den Rückgang auf eine Verschiebung der Kundenbestellungen hin zu mittleren Technologie-PCBs zurück, was zu niedrigeren Preisen und Margen führte. CEO Eli Yaffe äußerte jedoch Zuversicht in die langfristige Strategie des Unternehmens und verwies auf einen Anstieg des Auftragsbestands um 30 % seit Jahresbeginn 2024 sowie auf die Erwartung einer verbesserten Rentabilität im dritten Quartal.
- Backlog increased by 30% since the beginning of 2024
- Cash and cash equivalents amounted to $18.3 million as of June 30, 2024
- Financial income increased to $0.5 million from $0.2 million in Q2 2023
- Revenues decreased to $10.5 million from $11.0 million in Q2 2023
- Operating profit fell to $0.4 million from $1.4 million in Q2 2023
- Net income dropped to $0.8 million from $1.3 million in Q2 2023
- Gross profit margin decreased to 16% from 27% in Q2 2023
- EBITDA declined to $0.8 million (7.6% of revenues) from $1.7 million (15.3% of revenues) in Q2 2023
Insights
Eltek's Q2 2024 results show a concerning decline in key financial metrics. Revenues dropped to
Despite these challenges, Eltek maintains a strong cash position of
The PCB industry is experiencing a notable shift in demand patterns. Eltek's Q2 results reflect a temporary prioritization of medium-technology PCBs by key customers, impacting prices and margins. This trend, if persistent, could signal broader market changes affecting the entire PCB sector.
However, Eltek's
Eltek's focus on "technologically advanced solutions" in PCBs positions it well in a rapidly evolving tech landscape. The temporary shift to medium-tech PCBs might reflect supply chain adjustments or cost-saving measures by clients. However, the projected return to complex, higher-margin PCBs in Q3 aligns with the broader trend towards more sophisticated electronic devices.
The company's ability to maintain a diverse product portfolio, catering to both medium and high-tech needs, demonstrates adaptability. This flexibility could be a key strength in navigating future market fluctuations and technological advancements in the PCB industry.
PETACH TIKVA,
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
or$0.8 million per fully diluted share$0.11 - 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
Second Quarter 2024 GAAP Financial Results
Revenues for the second quarter of 2024 were
Gross profit for the second quarter of 2024 was
Operating profit for the second quarter of 2024 was
Financial income for the second quarter of 2024 was
Profit before income tax for the second quarter of 2024 was
Net income for the second quarter of 2024 was
Second Quarter 2024 Non-GAAP Financial Results
EBITDA for the second quarter of 2024 was
First Six Months 2024 GAAP Financial Results
Revenues for the first six months of 2024 were
Gross profit for the first six months of 2024 was
Operating profit for the first six months of 2024 was
Financial income for the first six months of 2024 was
Profit before income tax for the first six months of 2024 was
Net profit for the first six months of 2024 was
First Six Months 2024 Non-GAAP Financial Results
EBITDA for the first six months of 2024 was a
About our Non-GAAP Financial Information
The Company reports financial results in accordance with
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:
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
Eltek was founded in 1970. The Company's headquarters, R&D, production and marketing center are located in
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 Freund
Chief Financial Officer
Investor-Contact@nisteceltek.com
+972-3-939-5023
Eltek Ltd. | ||||||||||
Consolidated Statements of Income | ||||||||||
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 | ||||||
Eltek Ltd. | ||||||||||
Consolidated Balance Sheets | ||||||||||
June 30, | December 31, | |||||||||
2024 | 2023 | |||||||||
Assets | ||||||||||
Current assets: | ||||||||||
Cash and cash equivalents | 8,877 | 9,278 | ||||||||
Short-term bank deposits | 9,396 | 2,862 | ||||||||
Receivables: Trade, net of provision for doubtful accounts | 9,948 | 10,898 | ||||||||
Other | 287 | 689 | ||||||||
Inventories | 6,440 | 6,135 | ||||||||
Prepaid expenses | 306 | 245 | ||||||||
Total current assets | 35,254 | 30,107 | ||||||||
Long term assets: | ||||||||||
Severance pay fund | 55 | 57 | ||||||||
Deferred tax asset, net | 964 | 1,098 | ||||||||
Operating lease right of use assets | 5,965 | 6,555 | ||||||||
Total long term assets | 6,984 | 7,710 | ||||||||
Fixed assets, less accumulated depreciation | 12,669 | 9,354 | ||||||||
Total Assets | 54,907 | 47,171 | ||||||||
Liabilities and Shareholder's equity | ||||||||||
Current liabilities: | ||||||||||
Accounts payable: Trade | 5,273 | 7,503 | ||||||||
Other | 5,214 | 5,689 | ||||||||
Short-term operating lease liabilities | 763 | 789 | ||||||||
Total current liabilities | 11,250 | 13,981 | ||||||||
Long-term liabilities: | ||||||||||
Employee severance benefits | 399 | 447 | ||||||||
Long-term operating lease liabilities | 5,306 | 5,871 | ||||||||
Total long-term liabilities | 5,705 | 6,318 | ||||||||
Shareholders' equity: | ||||||||||
Ordinary shares of | 6,006 | 5,443 | ||||||||
Additional paid-in capital | 32,597 | 23,587 | ||||||||
Cumulative foreign currency translation adjustments | (486) | 783 | ||||||||
Capital reserve | 2,186 | 1,900 | ||||||||
Accumulated deficit | (2,351) | (4,841) | ||||||||
Total shareholders' equity | 37,952 | 26,872 | ||||||||
Total liabilities and shareholders' equity | 54,907 | 47,171 | ||||||||
Eltek Ltd. | |||||||||
Unaudited Non-GAAP EBITDA Reconciliations | |||||||||
Three months ended | Six months ended | ||||||||
June 30, | June 30, | ||||||||
2024 | 2023 | 2024 | 2023 | ||||||
GAAP net income | 751 | 1,313 | 2,490 | 2,875 | |||||
Add back items: | |||||||||
Financial income, net | (489) | (190) | (839) | (477) | |||||
Income tax expenses | 143 | 271 | 475 | 585 | |||||
Depreciation and amortization | 388 | 301 | 753 | 630 | |||||
Non-GAAP EBITDA | 793 | 1,695 | 2,879 | 3,613 | |||||
Eltek Ltd. | ||||||||||
Consolidated Statement of Cash flow | ||||||||||
Three months ended | Six months ended | |||||||||
June 30, | June 30, | |||||||||
2024 | 2023 | 2024 | 2023 | |||||||
Cash flows from operating activities: | ||||||||||
Net Income | 751 | 1,313 | 2,490 | 2,875 | ||||||
Adjustments to reconcile net income to net cash flows | ||||||||||
provided by operating activities: | ||||||||||
Depreciation and amortization | 388 | 301 | 753 | 630 | ||||||
Accrued interest | (98) | - | (186) | - | ||||||
Stock-based compensation | 154 | 72 | 286 | 144 | ||||||
Decrease in deferred tax assets and long term tax receivable | (100) | 260 | 91 | 566 | ||||||
344 | 633 | 944 | 1,340 | |||||||
Decrease (increase) in operating lease right-of-use assets | 2 | 11 | 3 | (22) | ||||||
Decrease (increase) in trade receivables | (219) | (1,896) | 517 | (1,784) | ||||||
Decrease (increase) in other receivables and prepaid expenses | 234 | 214 | 309 | (311) | ||||||
Decrease (increase) in inventories | (169) | (496) | (565) | (809) | ||||||
Increase (decrease) in trade payables | 955 | (307) | (536) | 105 | ||||||
Increase (decrease) in other liabilities and accrued expenses | (48) | 629 | (249) | 1,477 | ||||||
Increase (decrease) in employee severance benefits, net | (48) | 17 | (30) | 22 | ||||||
707 | (1,828) | (551) | (1,322) | |||||||
Net cash provided by operating activities | 1,802 | 118 | 2,883 | 2,893 | ||||||
Cash flows from investing activities: | ||||||||||
Purchase of property and equipment | (3,215) | (406) | (5,947) | (711) | ||||||
Insurance Proceeds | - | 2,000 | - | 2,000 | ||||||
Investment in short-term bank deposits, net | (132) | - | (6,534) | - | ||||||
Restricted deposits | - | 192 | - | 192 | ||||||
Net cash provided by (used in) investing activities | (3,347) | 1,786 | (12,481) | 1,481 | ||||||
Cash flows from financing activities: | ||||||||||
Exercise of options | 16 | 299 | 261 | 299 | ||||||
Repayment of long-term loans from bank | - | (1,768) | - | (3,348) | ||||||
Issuance of shares, net | - | - | 9,312 | - | ||||||
Net cash provided by (used in) financing activities | 16 | (1,469) | 9,573 | (3,049) | ||||||
Effect of translation adjustments | (204) | (164) | (376) | (361) | ||||||
Net increase (decrease) in cash and cash equivalents | (1,733) | 271 | (401) | 964 | ||||||
Cash and cash equivalents at the beginning of the period | 10,610 | 8,059 | 9,278 | 7,366 | ||||||
Cash and cash equivalents at the end of the period | 8,877 | 8,330 | 8,877 | 8,330 |
View original content:https://www.prnewswire.com/news-releases/eltek-ltd-reports-2024-second-quarter-financial-results-302223390.html
SOURCE Eltek Ltd.
FAQ
What were Eltek's (ELTK) Q2 2024 revenue and earnings?
Why did Eltek's (ELTK) financial performance decline in Q2 2024?
What is Eltek's (ELTK) outlook for Q3 2024?