The Marketing Minute: If Your Marketing Budget Gets Cut in Half, Then What?
Punching Out: How Are the Big Boys in Electronics Doing?
It’s Only Common Sense: Complexity Is the Enemy of Profit
Eltek Reports 2021 First Quarter Financial Results
May 21, 2021 | EltekEstimated reading time: 2 minutes
Eltek Ltd., a global manufacturer and supplier of technologically advanced solutions in the field of printed circuit boards (PCBs), announced its financial results for the quarter ended March 31, 2021.
“Despite the global challenges we encountered related to both the Covid-19 pandemic and the shortage of key raw materials, we were able to respond quickly, maintain operational efficiency and remain profitable in the first quarter”, said Eli Yaffe, Chief Executive Officer of Eltek. “We expect that revenues will rebound during the rest of the year and lost sales will be recovered upon the expected availability of key raw material (Pyralux AP) which was in short supply and with the authorization of the use of alternative raw materials by our customers,” added Mr. Yaffe. “The approval process with our customers for the use of the alternative raw materials is proceeding as planned and, is reducing our production costs. In addition, we are exploring ways to strengthen our position in the multi-billion dollar PCB market in North America, and can serve as a rapid growth engine for Eltek”, further explained Mr. Yaffe.
“We are operating in a challenging business environment and making the necessary adjustments to increase revenues, expand our operating efficiencies, improve customer satisfaction and maintain sustained profitability. We plan to strengthen our sales activities and continue our investments in new equipment to expand our manufacturing facilities and infrastructure during the remainder of the year as part of our strategic growth plan. Our board of directors approved our obtaining a loan of NIS 10 million (approximately $3.1 million) from Bank Leumi B.M. The loan has a term of ten years, with favorable terms, including a repayment schedule that starts after a 12 month grace period and carried interest of Prime + 1.50%, which is waived for the first year of the loan”, concluded Mr. Yaffe.
Highlights of the First Quarter of 2021 compared to the First Quarter of 2020
- Revenues were $7.2 million in the first quarter of 2021 compared to revenues of $9.2 million in the first quarter of 2020
- Gross profit was $1.1 million (15.9% of revenues) in the first quarter of 2021 compared to $1.8 (19.7% of revenues) in the first quarter of 2020
- Operating profit was $136,000 in the first quarter of 2021 compared to operating profit of $612,000 in the first quarter of 2020
- Net profit was $223,000 or $0.04 per fully diluted share for the first quarter of 2021 compared to net profit of $541,000 or $0.12 per fully diluted share in the first quarter of 2020
- EBITDA was a $577,000 (8.0% of revenues) in the first quarter of 2021 compared to EBITDA of $1.0 million (11.0% of revenues) in the first quarter of 2020
- Net cash provided by operating activities amounted to $2.5 million in the first quarter of 2021 compared to net cash provided by operating activities of $1.5 million in the first quarter of 2020
- Cash and cash equivalents as of March 31, 2021 were $6.4 million compared to $4.7 million as of December 31, 2020
Share on:
Testimonial
"We’re proud to call I-Connect007 a trusted partner. Their innovative approach and industry insight made our podcast collaboration a success by connecting us with the right audience and delivering real results."
Julia McCaffrey - NCAB GroupSuggested Items
STARTEAM GLOBAL Achieves A Score in CDP’s Supplier Engagement Assessment
05/14/2026 | STARTEAM GLOBALSTARTEAM GLOBAL has achieved an A score in CDP’s Supplier Engagement Assessment (SEA).
Rethinking Stackup, Materials, and Tolerances in Modern Designs
05/14/2026 | Kristin Moyer, Global Electronics AssociationThe simple rectangular rigid PCB is becoming increasingly infrequent. This reality necessitates designing with concepts well outside traditional rigid PCB methodologies. For example, the designer of wearable electronics may need to implement conductive fibers integrated into the textile material. Heads-up displays, like those in VR/AR headsets and glasses, require transparent circuitry etched into the display glass. The process of designing without a rule book usually starts with something other than the traditional board design process.
Separating Fact from Fear on the FCC ‘China Lab Ban’
05/14/2026 | Jan Pedersen, NCAB GroupRecent news headlines have suggested that the U.S. Federal Communications Commission (FCC) has “banned all testing laboratories in China and Hong Kong.” Understandably, this has created concerns around PCB testing, material approvals, UL listings, and the continued use of established test laboratories in Asia. The good news is that for most PCB, PCB material, and PCBA testing, nothing has changed. Let’s separate fact from fear.
Zhen Ding Reports Record 1Q26 Revenue; Up 1.6% YoY
05/14/2026 | Zhen Ding TechnologyZhen Ding Technology Holding Limited, a global leading PCB manufacturer, announced its consolidated financial results for the first quarter of 2026. First quarter revenue reached NT$40,728 million, up 1.6% YoY and setting a record high for the same period. Net income was NT$2,047 million, and net income attributable to the parent company was NT$1,426 million, with EPS of NT$1.33.
New Courses: Advance Your Electronics Expertise in June and July
05/14/2026 | Global Electronics AssociationStay current with design, manufacturing, and quality standards by enrolling in one of these online instructor-led courses starting in June and July from ElectronicsU at the Global Electronics Association, designed to help professionals at every level sharpen their skills and advance their careers. These live, expert-led sessions combine flexibility with real-time interaction, allowing participants to learn directly from seasoned industry professionals while collaborating with peers worldwide. Access to all applicable IPC standards is included in the courses.