Eltek receives a $1.4 million letter of intent for a purchase order from an existing defense customer with option to increase the purchase order to up to $2.1 million

Rhea-AI Summary

Eltek Ltd. (NASDAQ: ELTK) announced receiving a letter of intent for a $1.4 million purchase order from a defense sector customer, effective April 2022, extendable up to $2.1 million. This order underscores the customer's trust in Eltek's advanced technology and reliability, with a delivery timeframe of 14 months. CEO Eli Yaffe expressed confidence in the company’s ability to stabilize income through medium-term orders. Eltek specializes in high-quality printed circuit boards and holds significant industry certifications.

Positive

• Received a letter of intent for a $1.4 million purchase order from a defense customer.
• Potential to increase the order value to $2.1 million.
• The order duration is set for 14 months, enhancing revenue stability.

Negative

• None.

PETACH TIKVA, Israel, Feb. 7, 2022 /PRNewswire/ -- Eltek Ltd. (NASDAQ: ELTK), a global manufacturer and supplier of technologically advanced solutions in the field of printed circuit boards, announced today that the company has received a letter of intent for a purchase order in the amount of $1.4 million from an existing customer in the defense sector. The order, once released, will be supplied by Eltek over a period of fourteen months commencing April 2022. The customer has an option to increase the purchase order to a total amount of $2.1 million.

"We are proud that Eltek has once again been selected by this customer as the supplier of choice for its advanced and sophisticated products," commented Eli Yaffe, CEO of Eltek. "This repeat order represents the customer's recognition of our high technological capabilities and the reliability of our products. We aim to expand the receipt of medium term delivery orders which stabilize our income and increase our operational production efficiency."

About Eltek

Eltek is a global manufacturer and supplier of technologically advanced solutions in the field of printed circuit boards (PCBs), and is the Israeli leader 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.

Investor Contact:

Ron Freund
Chief Financial Officer
ronf@nisteceltek.com  
+972-3-9395023

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SOURCE Eltek Ltd.

FAQ

What is the recent purchase order Eltek received for?

Eltek received a letter of intent for a $1.4 million purchase order from a defense sector customer.

When is the purchase order from Eltek expected to start?

The purchase order is expected to commence in April 2022.

What is the maximum potential value of the purchase order for Eltek?

The purchase order has an option to increase the total value up to $2.1 million.

How long will the Eltek purchase order last?

The delivery of the purchase order will occur over a period of 14 months.

What does Eltek specialize in?

Eltek specializes in manufacturing high-quality printed circuit boards (PCBs) for various industries.