Eltek Reports Revenue Drop in Q4 and FY 2015

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Eltek Ltd., a global manufacturer and supplier of technologically advanced solutions in the field of Printed Circuit Boards, announced today its financial results for the fourth quarter and full year ended December 31, 2015.

Mr. Yitzhak Nissan, Chairman of the Board and Chief Executive Officer, commented: "We are pleased with the results of the fourth quarter and full year of 2015, which reflect a significant and continued improvement in Eltek's gross profit and gross margins, and a transition to a net profit. This was achieved mainly due to cross organizational processes implemented in 2015 in order to improve manufacturing efficiency, marketing, sales and customer service.

We expect these actions and our ability to offer our high-end customers cutting edge PCBs and advanced solutions to their most complicated requests, to advance Eltek's success in future quarters."

Highlights of the Full Year of 2015 compared to the Full Year of 2014

• Revenues in the full year of 2015 amounted to $41.4 million; compared to revenues of $46.6 million recorded in 2014, a decrease of approximately 11.3%, mainly due to a decrease in revenues from the Israeli market, which was partially offset by an increase in the North American market.
• Gross profit was $6.6 million (15.8% of revenues), an increase of 8.7% compared to gross profit of $6.0 million (12.9% of revenues) in 2014;
• Operating profit was $1.5 million compared to an operating loss of $903,000 in 2014;
• Net profit was $1.0 million or $0.1 per fully diluted share, compared to a net loss of $2.7 million or $0.26 per fully diluted share in 2014;
• EBITDA amounted to $3.3 million (8.1% of revenues) compared to $1.2 million (2.6% revenues) in 2014;
• Net cash provided by operating activities amounted to $1.7 million compared to $79,000 in 2014;
• The Company's equity as of December 31, 2015 amounted to $10.2 million, compared to $9.2 million as of December 31, 2014;
• Cash and cash equivalents as of December 31, 2015 were $1.0 million, compared to $1.1 million as of December 31, 2014. In addition, the Company has un-utilized lines of credit in the amount of $2.7 million as of December 31, 2015.

Highlights of the Fourth Quarter of 2015 compared to the Fourth Quarter of 2014

• Revenues for the fourth quarter of 2015 were $10.4 million compared with revenues of $10.6 million  in the fourth quarter of 2014;
• Gross profit was $1.7 million (16.3% of revenues), an increase of 27.4% compared with a gross profit of $1.3 million (12.5% of revenues) in the fourth quarter of 2014;
• Operating profit was $455,000 compared to an operating loss of $270,000 in the fourth quarter of 2014;
• Net profit was $228,000 or $0.02 per fully diluted share, compared to a net loss of $1.8 million or $0.18 per fully diluted share in the fourth quarter of 2014;
• EBITDA amounted to $940,000 (9.0% of revenues) compared to EBITDA of $250,000 (2.4% of revenues) in the fourth quarter of 2014;
• Net cash provided by operating activities amounted to $1.4 million, compared to $274,000 in the fourth quarter of 2014.

Mr. Nissan added: "Our sales in the North American market increased by 27% and amounted to $7.5 million in 2015. Our ITAR license, together with our prestigious AS-9100C and NADCAP Electronics accreditations, support our penetration of leading defense, aerospace and medical customers in North America"

"I believe that with continued focus on improved profitability and competitiveness, Eltek is now well positioned for growth in the global markets in 2016." Mr. Nissan concluded.

About Eltek

Eltek is a global manufacturer and supplier of technologically advanced solutions in the field of Printed Circuit Boards, 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 has ITAR, AS-9100 and NADCAP Electronics permits and its customers include top of the line 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, and R&D, Production and Marketing Center is located in Israel. Eltek operates also through its subsidiaries, Eltek USA (100%) in North America and Kubatronik (79%) in Europe and by agents and distributors in Europe, India, South Africa and South America.