Eltek Reports 2022 First Quarter Financial Results

Estimated reading time: 1 minute

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, 2022. 

“The world's exit from the Covid-19 crisis, the increased demand for defense products, and the continuation of the trend of shifting back high-end PCB production to Western countries continue to have a positiveimpact on our Company's results of operations. The Company's backlog as of March 31, 2022, increased by 50% compared to the beginning of the year. Eltek is a key supplier to several major defense contractors and its revenues and backlog are influenced directly from the increased demand of their customers”, said Eli Yaffe, Chief Executive Officer of Eltek. “During the first quarter of 2022, we began our accelerated investment program at the Company's plant in Petach Tikva in order to cope with the increase in demand we forecast and the need for higher efficiency. The first phase of the plan includes investments in production lines and infrastructure amounting to $9 million. The total cost of our accelerated investment plan is expected to be $15 million.  We are also continuing our efforts to increase our skilled workforce in order to expand our production capacity”, concluded Mr. Yaffe. 

Highlights of the First Quarter of 2022 compared to the First Quarter of 2021

• Revenues were $9.8 million in the first quarter of 2022 compared to revenues of $7.2 million in the first quarter of 2021;
• Gross profit was $2.0 million (20.1% of revenues) in the first quarter of 2022 compared to $1.1 (15.9% of revenues) in the first quarter of 2021;
• Operating profit was $0.7 million in the first quarter of 2022 compared to an operating profit of $0.1 million in the first quarter of 2021;
• Profit before income tax was $0.8 million in the first quarter of 2022 compared to $0.2 million in the first quarter of 2021;
• Net profit was $0.6 million or $0.11 per fully diluted share for the first quarter of 2022 compared to net profit of $0.2 million or $0.04 per fully diluted share in the first quarter of 2021;
• EBITDA was a $1.1 million (11% of revenues) in the first quarter of 2022 compared to EBITDA of
• $0.6 million (8% of revenues) in the first quarter of 2021;
• Net cash provided by operating activities amounted to $0.3 million in the first quarter of 2022 compared to net cash provided by operating activities of $2.5 million in the first quarter of 2021;
• Cash and cash equivalents as of March 31, 2022 were $9.1 million compared to $9.3 million as of December 31, 2021.