SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
--------------------------
F O R M 6-K
REPORT OF FOREIGN PRIVATE ISSUER PURSUANT TO RULE 13A-16 OR
15D-16 UNDER THE SECURITIES EXCHANGE ACT OF 1934
FOR THE MONTH OF AUGUST 2005
ELTEK LTD.
(Name of Registrant)
Sgoola Industrial Zone, Petach Tikva, Israel
(Address of Principal Executive Office)
INDICATE BY CHECK MARK WHETHER THE REGISTRANT FILES OR WILL FILE ANNUAL
REPORTS UNDER COVER OF FORM 20-F OR FORM 40-F.
FORM 20-F [X] FORM 40-F [_]
INDICATE BY CHECK MARK IF THE REGISTRANT IS SUBMITTING THE FORM 6-K IN
PAPER AS PERMITTED BY REGULATION S-T RULE 101(B)(1): [_]
INDICATE BY CHECK MARK IF THE REGISTRANT IS SUBMITTING THE FORM 6-K IN
PAPER AS PERMITTED BY REGULATION S-T RULE 101(B)(7): [_]
INDICATE BY CHECK MARK WHETHER BY FURNISHING THE INFORMATION CONTAINED IN
THIS FORM, THE REGISTRANT IS ALSO THEREBY FURNISHING THE INFORMATION TO THE
COMMISSION PURSUANT TO RULE 12G3-2(B) UNDER THE SECURITIES EXCHANGE ACT OF 1934.
YES [_] NO [X]
IF "YES" IS MARKED, INDICATE BELOW THE FILE NUMBER ASSIGNED TO THE
REGISTRANT IN CONNECTION WITH RULE 12G3-2(B): 82-
THIS FORM 6-K IS BEING INCORPORATED BY REFERENCE INTO THE REGISTRANT'S FORM S-8
REGISTRATION STATEMENTS FILE NOS. 333-12012 AND 333-123559.
ELTEK LTD.
6-K ITEMS
1. Press release Eltek Reports 2Q05 Financial Results dated August 11,
2005.
2. Corrected press release Eltek Reports 2Q05 Financial Results dated
August 11, 2005.
ITEM 1
PRESS RELEASE Source: ELTEK Ltd.
Contact: ELTEK Ltd.
Amnon Shemer, CFO, +972-3-9395023
amnons@eltek.co.il
ELTEK REPORTS 2Q05 FINANCIAL RESULTS
Thursday August 11, 4:05 pm ET
REVENUES RISE 25% YEAR-OVER-YEAR TO $7.4 MILLION
4TH CONSECUTIVE QUARTER OF YEAR-OVER-YEAR REVENUE GROWTH
EXPECT TO MAINTAIN MOMENTUM DURING REMAINDER OF 2005
PETACH-TIKVA, Israel, August 11, 2005 - Eltek Ltd. (NASDAQ: ELTK), the leading
Israeli manufacturer of advanced circuitry solutions, today announced financial
results for the second quarter and six months ended June 30, 2005.
SECOND QUARTER 2005 KEY FINANCIAL HIGHLIGHTS:
o Fourth consecutive quarter of year - over - year revenue growth
o Revenue increased by 25 % year - over - year
o Third consecutive quarter of profitability
o Quarterly net income of $101,000 or $0.02 per share
o Further reduction in bank debt
Eltek reported revenues for the three months ended June 30, 2005 of NIS 33.8
million ($7.4 million) compared with NIS 27.1 million ($5.9 million) during the
second quarter of 2004, 25% increase.
Net income for the second quarter totaled NIS 461,000 ($101,000), or NIS 0.11
per NIS 1 par value of shares (NIS 0.07 or $0.01 per share) compared with a net
loss of NIS 4.3 million ($935,000), or NIS 1.03 per NIS 1 par value of shares
(NIS 0.62 or $0.14 per share) for the same quarter in 2004.
Revenues for the six-month period ended June 30, 2005, were NIS 68.2 million
($14.9 million) compared with revenues of NIS 57.4 million ($12.6 million) for
the comparable period in 2004.
Net income for the six-month period ended June 30, 2005 was NIS 1.3 million
($284,000), or NIS 0.16 per NIS 1 par value of shares (NIS 0.10 or $0.02 per
share), compared with a net loss of NIS 6.8 million ($1.5 million) or NIS 1.64
per NIS 1 par value of shares (NIS 0.99 or $0.22 per share) for the same period
in 2004.
"With quarterly revenues up 25% percent, the second quarter of 2005 was our
fourth consecutive quarter of year-over-year revenues growth. The continuing
growth validates our business strategy of shifting the Company's product mix
towards higher margin flex-rigid boards, while increasing our international
operations and expanding our global customer base," said Arieh Reichart,
President and Chief Executive Officer of Eltek.
"Growing the Company on a consistent long - term basis, in conjunction with
bringing it to a significant level of profitability, continues to be a top
priority for Eltek's management," added Reichart. "I am very encouraged with our
success in signing multi - quarter deals with both existing and new customers,
enabling us to experience an increase in the contribution of new and follow - on
orders pursuant to long - term projects. These transactions are positively
impacting our overall corporate productivity and visibility."
"Based on our improved revenue visibility in Europe and in the U.S., Eltek now
expects to continue to achieve year - over - year revenue growth, and to reach
the Company's highest quarterly levels since the first quarter of 2001, along
with increased profitability in the third quarter of 2005" continued Reichart. "
We also expect to maintain a positive momentum in the fourth quarter as well,"
he added. "We feel that the years of hard work and focus on the high-end PCB
markets are clearly starting to fundamentally pay off."
Amnon Shemer, CFO of Eltek commented: "In the second quarter of 2005 our gross
margin improved to 18%, from 4% in 2004 and our operating income increased to $
241,000 from an operating loss of $814,000 in the second quarter of 2004. In
addition, during the quarter, the company received $463,000 from the exercise of
stock options granted under our 2000 Stock Incentive Plan, thus further
strengthening our cash position, and enabling us to continue to reduce our bank
debt. As of June 30, 2005, long term bank debt declined by $1.6 million compared
to June 30, 2004 and declined by $ 720,000 compared to December 31, 2004. In
addition, our working capital deficiency improved by $ 1.1 million compared to
December 31, 2004."
About the Company
Eltek is Israel's leading manufacturers of printed circuit boards, the core
circuitry of most electronic devices. It specializes in the complex high-end of
PCB manufacturing, i.e., HDI, multi-layered and flex-rigid boards. Eltek's
technologically advanced circuitry solutions are used in today's increasingly
sophisticated and compact electronic products. The Company has invested heavily
in upgrading its production facilities over the past five years. For more
information, visit Eltek's World Wide Web site at www.eltekglobal.com.
CERTAIN MATTERS DISCUSSED IN THIS NEWS RELEASE ARE FORWARD-LOOKING STATEMENTS
THAT INVOLVE A NUMBER OF RISKS AND UNCERTAINTIES INCLUDING, BUT NOT LIMITED TO
STATEMENTS REGARDING EXPECTED RESULTS IN FUTURE QUARTERS, 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
FILINGS WITH THE UNITED STATES SECURITIES AND EXCHANGE COMMISSION.
ELTEK LTD.
CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except per share data)
CONVENIENCE CONVENIENCE
TRANSLATION TRANSLATION
------- -------
SIX MONTHS ENDED THREE MONTHS ENDED
REPORTED AMOUNTS JUNE 30, JUNE 30,
---------------------------------- ----------------------------------
2004 2005 2005 2004 2005 2005
(UNAUDITED) (UNAUDITED) (UNAUDITED) (UNAUDITED) (UNAUDITED) (UNAUDITED)
NIS NIS U.S. $ NIS NIS U.S. $
------- ------- ------- ------- ------- -------
Revenues 57,416 68,237 14,918 27,102 33,842 7,399
Costs of revenues (52,980)* (55,829) (12,206) (26,135)* (27,746) (6,066)
------- ------- ------- ------- ------- -------
GROSS PROFIT 4,436 12,408 2,712 967 6,096 1,333
Research and development, net - (351) (77) - (160) (35)
Selling, general and administrative
expenses (9,176) (9,205) (2,012) (4,547) (4,686) (1,025)
Amortization of goodwill (294) (300) (66) (147) (148) (32)
------- ------- ------- ------- ------- -------
OPERATING INCOME (LOSS) (5,034) 2,552 557 (3,727) 1,102 241
Financial expenses, net (1,816) (1,380) (301) (664) (766) (167)
------- ------- ------- ------- ------- -------
INCOME (LOSS) BEFORE OTHER EXPENSES, NET (6,850) 1,172 256 (4,391) 336 74
Other expenses, net (29)* (24) (5) (12)* (13) (3)
------- ------- ------- ------- ------- -------
INCOME (LOSS) BEFORE TAXES ON INCOME (6,879) 1,148 251 (4,403) 323 71
Taxes on income - - - 55 - -
------- ------- ------- ------- ------- -------
INCOME (LOSS) AFTER TAXES ON INCOME (6,879) 1,148 251 (4,348) 323 71
Minority share in subsidiary's net
results 38 152 33 69 138 30
------- ------- ------- ------- ------- -------
NET INCOME (LOSS) FOR THE PERIOD (6,841) 1,300 284 (4,279) 461 101
======= ======= ======= ======= ======= =======
BASIC AND DILUTED EARNINGS (LOSS) PER
NIS 1 PAR VALUE OF THE SHARE CAPITAL** (1.64) 0.16 0.03 (1.03) 0.11 0.02
======= ======= ======= ======= ======= =======
TOTAL PAR VALUE OF SHARES USED TO COMPUTE
BASIC AND DILUTED EARNINGS (LOSS) PER NIS
1 PAR VALUE OF SHARE 4,131 4,197 4,197 4,131 4,197 4,197
======= ======= ======= ======= ======= =======
* Reclassified
** Ordinary shares of a par value of NIS 0.6 each.
ELTEK LTD.
CONSOLIDATED CONDENSED BALANCE SHEETS
(IN THOUSANDS)
CONVENIENCE
TRANSLATION
-------
DECEMBER 31, JUNE 30, JUNE 30,
------- ------------------------- -------
2004 2004 2005 2005
REPORTED AMOUNTS (AUDITED) (UNAUDITED) (UNAUDITED) (UNAUDITED)
NIS NIS NIS U.S. $
------- ------- ------- -------
ASSETS
CURRENT ASSETS
Cash and cash equivalents 4,274 4,710 2,309 505
Receivables: Trade 23,835 18,786 25,249 5,520
Other 1,158 953 1,174 257
Inventories 13,633 13,004 13,788 3,014
Prepaid expenses 563 843 1,200 262
------- ------- ------- -------
TOTAL CURRENT ASSETS 43,463 38,296 43,720 9,558
------- ------- ------- -------
DEFERRED TAXES 753 - 708 155
------- ------- ------- -------
PROPERTY AND EQUIPMENT, NET 31,569 37,201 27,155 5,937
------- ------- ------- -------
GOODWILL 4,656 4,621 4,084 893
------- ------- ------- -------
TOTAL ASSETS 80,441 80,118 75,667 16,543
======= ======= ======= =======
LIABILITIES AND SHAREHOLDER'S EQUITY
CURRENT LIABILITIES
Short-term credit and current
maturities of long-term debts 19,589 21,235 18,830 4,117
Trade payables 23,577 21,214 19,338 4,228
Other liabilities and accrued
expenses 11,083 9,808 11,317 2,474
------- ------- ------- -------
TOTAL CURRENT LIABILITIES 54,249 52,257 49,485 10,819
------- ------- ------- -------
LONG- TERM LIABILITIES
Long term debt, excluding current
maturities 6,687 10,123 3,815 834
Employee severance benefits 1,048 988 1,131 247
------- ------- ------- -------
TOTAL LIABILITIES 61,984 63,368 54,431 11,900
------- ------- ------- -------
MINORITY INTERESTS 1,900 1,909 1,636 358
------- ------- ------- -------
CONVERTIBLE NOTE 1,566 1,532 1,720 376
------- ------- ------- -------
SHAREHOLDER'S EQUITY
Ordinary shares, NIS 0.6 par value
Authorized 50,000,000 shares,
issued
and outstanding 5,602,511 shares at
June 30, 2005 and 5,491,711 shares
at June 30, 2004 and at December
31, 2004 29,698 29,698 29,765 6,507
Additional paid in capital 52,500 52,500 54,553 11,927
Capital reserves related to loans
from controlling shareholders 10,010 10,010 10,010 2,188
Cumulative foreign currency
translation adjustments 2,574 1,878 2,043 447
Capital reserve 6,685 6,685 6,685 1,462
Accumulated deficit (86,476) (87,462) (85,176) (18,622)
------- ------- ------- -------
TOTAL SHAREHOLDER'S EQUITY 14,991 13,309 17,880 3,909
------- ------- ------- -------
TOTAL LIABILITIES AND SHAREHOLDERS'
EQUITY 80,441 80,118 75,667 16,543
======= ======= ======= =======
ELTEK LTD.
CONSOLIDATED STATEMENT OF CASH FLOWS
(In thousands)
THREE MONTHS ENDED CONVENIENCE
---------------------- TRANSLATION
JUNE 30 JUNE 30 JUNE 30
REPORTED AMOUNTS 2004 2005 2005
------ ------ ------
(UNAUDITED) (UNAUDITED) (UNAUDITED)
NIS NIS U.S. $
------ ------ ------
CASH FLOWS FROM OPERATING
ACTVITIES
Net income (loss) for the period (4,279) 461 101
ADJUSTMENT TO RECONCILE NET
INCOME (LOSS) TO NET CASHFLOWS
PROVIDED BY (USED FOR) OPERATING
ACTIVITIES:
Depreciation 3,453 2,699 590
Loss from disposal of fixed - 13 3
assets
Inflationary impact on long-term
debts 8 375 82
Minority share in subsidiary's
net results (69) (138) (30)
Amortization of goodwill 147 148 32
Increase (decrease) in employee
severance benefits, net (118) 52 11
Decrease (increase) in trade
receivables 1,633 (649) (142)
Decrease (increase) in other
receivables and prepaid expenses 203 (347) (76)
Decrease in trade payables (111) (2,024) (442)
Increase (decrease) in other
liabilities and accrued expenses 679 (769) (168)
Accrued interest on convertible
note 40 43 9
Decrease in inventories 137 85 19
------ ------ ------
NET CASH PROVIDED BY (USED FOR)
OPERATING ACTIVITIES 1,723 (51) (11)
------ ------ ------
CASH FLOWS FOR INVESTING
ACTIVITIES:
Purchase of fixed assets (391) (567) (124)
------ ------ ------
NET CASH USED FOR INVESTING
ACTIVITIES (391) (567) (124)
------ ------ ------
CASH FLOWS FROM FINANCING
ACTIVITIES:
Increase (decrease) in
short-term credit 238 (181) (40)
Repayment of long-term loans (1,236) (1,849) (404)
Proceeds from exercise of stock
options - 2,120 463
------ ------ ------
NET CASH GENERATED BY (USED FOR)
FINANCING ACTIVITIES (998) 90 19
------ ------ ------
ADJUSTMENTS FROM TRANSLATION OF
FINANCIAL STATEMENTS OF
AUTONOMOUS UNITS (34) (36) (8)
------ ------ ------
NET INCREASE (DECREASE) IN CASH
AND CASH EQUIVALENTS 300 (564) (124)
CASH AND CASH EQUIVALENTS AT
BEGINNING OF PERIOD 4,410 2,873 629
------ ------ ------
CASH AND CASH EQUIVALENTS AT
END OF PERIOD 4,710 2,309 505
====== ====== ======
ELTEK LTD.
CONSOLIDATED STATEMENT OF CASH FLOWS
(In thousands)
SIX MONTHS ENDED CONVENIENCE
----------------------- TRANSLATION
JUNE 30 JUNE 30 JUNE 30
REPORTED AMOUNTS 2004 2005 2005
------ ------ ------
(UNAUDITED) (UNAUDITED) (UNAUDITED)
NIS NIS U.S. $
------ ------ ------
CASH FLOWS FROM OPERATING
ACTVITIES
Net income (loss) for the period (6,841) 1,300 284
ADJUSTMENT TO RECONCILE NET
INCOME (LOSS) TO NET CASH FLOWS
PROVIDED BY OPERATING ACTIVITIES:
Depreciation 6,947 5,587 1,221
Loss from disposal of fixed assets - 24 5
Inflationary impact on long-term
debts 384 446 98
Minority share in subsidiary's
net results (38) (152) (33)
Amortization of goodwill 294 300 66
Increase in employee severance
benefit, net 49 88 19
Decrease (increase) in trade
receivables 989 (1,519) (332)
Decrease (increase) in other
receivables and prepaid expenses 1,152 (670) (146)
Decrease in trade payables (1,093) (4,179) (914)
Increase in other liabilities
and accrued expenses 1,268 384 84
Accrued interest on convertible
note 75 82 18
Decrease (increase) in
inventories 135 (257) (56)
------ ------ ------
NET CASH PROVIDED BY OPERATING
ACTIVITIES 3,321 1,434 314
------ ------ ------
CASH FLOWS FOR INVESTING
ACTIVITIES:
Purchase of fixed assets (821) (1,427) (312)
------ ------ ------
NET CASH USED FOR INVESTING
ACTIVITIES (821) (1,427) (312)
------ ------ ------
CASH FLOWS FROM FINANCING
ACTIVITIES:
Increase (decrease) in
short-term credit 41 (211) (46)
Repayment of long-term loans (2,171) (3,777) (826)
Proceeds from exercise of stock
options - 2,120 463
------ ------ ------
NET CASH USED FOR FINANCING
ACTIVITIES (2,130) (1,868) (409)
------ ------ ------
ADJUSTMENTS FROM TRANSLATION OF
FINANCIAL STATEMENTS OF
AUTONOMOUS UNITS (31) (104) (23)
------ ------ ------
NET INCREASE (DECREASE) IN CASH
AND CASH EQUIVALENTS 339 (1,965) (430)
CASH AND CASH EQUIVALENTS AT
BEGINNING OF PERIOD 4,371 4,274 935
------ ------ ------
CASH AND CASH EQUIVALENTS AT
END OF PERIOD 4,710 2,309 505
====== ====== ======
NON-CASH ACTIVITIES:
Conversion of convertible note
into additional paid in capital 879 - -
====== ====== ======
ITEM 2
CORRECTED PRESS RELEASE Source: ELTEK Ltd.
Contact: ELTEK Ltd.
Amnon Shemer, CFO, +972-3-9395023
amnons@eltek.co.il
ELTEK REPORTS 2Q05 FINANCIAL RESULTS
Thursday August 11
REVENUES RISE 25% YEAR-OVER-YEAR TO $7.4 MILLION
4TH CONSECUTIVE QUARTER OF YEAR-OVER-YEAR REVENUE GROWTH
EXPECT TO MAINTAIN MOMENTUM DURING REMAINDER OF 2005
PETACH-TIKVA, Israel, August 11, 2005 - Eltek Ltd. (NASDAQ: ELTK), the leading
Israeli manufacturer of advanced circuitry solutions, today announced financial
results for the second quarter and six months ended June 30, 2005.
SECOND QUARTER 2005 KEY FINANCIAL HIGHLIGHTS:
o Fourth consecutive quarter of year - over - year revenue growth
o Revenue increased by 25 % year - over - year
o Third consecutive quarter of profitability
o Quarterly net income of $101,000 or $0.01 per share
o Further reduction in bank debt
Eltek reported revenues for the three months ended June 30, 2005 of NIS 33.8
million ($7.4 million) compared with NIS 27.1 million ($5.9 million) during the
second quarter of 2004, 25% increase.
Net income for the second quarter totaled NIS 461,000 ($101,000), or NIS 0.11
per NIS 1 par value of shares (NIS 0.07 or $0.01 per share) compared with a net
loss of NIS 4.3 million ($935,000), or NIS 1.03 per NIS 1 par value of shares
(NIS 0.62 or $0.14 per share) for the same quarter in 2004.
Revenues for the six-month period ended June 30, 2005, were NIS 68.2 million
($14.9 million) compared with revenues of NIS 57.4 million ($12.6 million) for
the comparable period in 2004.
Net income for the six-month period ended June 30, 2005 was NIS 1.3 million
($284,000), or NIS 0.16 per NIS 1 par value of shares (NIS 0.10 or $0.02 per
share), compared with a net loss of NIS 6.8 million ($1.5 million) or NIS 1.64
per NIS 1 par value of shares (NIS 0.99 or $0.22 per share) for the same period
in 2004.
"With quarterly revenues up 25% percent, the second quarter of 2005 was our
fourth consecutive quarter of year-over-year revenues growth. The continuing
growth validates our business strategy of shifting the Company's product mix
towards higher margin flex-rigid boards, while increasing our international
operations and expanding our global customer base," said Arieh Reichart,
President and Chief Executive Officer of Eltek.
"Growing the Company on a consistent long - term basis, in conjunction with
bringing it to a significant level of profitability, continues to be a top
priority for Eltek's management," added Reichart. "I am very encouraged with our
success in signing multi - quarter deals with both existing and new customers,
enabling us to experience an increase in the contribution of new and follow - on
orders pursuant to long - term projects. These transactions are positively
impacting our overall corporate productivity and visibility."
"Based on our improved revenue visibility in Europe and in the U.S., Eltek now
expects to continue to achieve year - over - year revenue growth, and to reach
the Company's highest quarterly levels since the first quarter of 2001, along
with increased profitability in the third quarter of 2005" continued Reichart. "
We also expect to maintain a positive momentum in the fourth quarter as well,"
he added. "We feel that the years of hard work and focus on the high-end PCB
markets are clearly starting to fundamentally pay off."
Amnon Shemer, CFO of Eltek commented: "In the second quarter of 2005 our gross
margin improved to 18%, from 4% in 2004 and our operating income increased to $
241,000 from an operating loss of $814,000 in the second quarter of 2004. In
addition, during the quarter, the company received $463,000 from the exercise of
stock options granted under our 2000 Stock Incentive Plan, thus further
strengthening our cash position, and enabling us to continue to reduce our bank
debt. As of June 30, 2005, long term bank debt declined by $1.6 million compared
to June 30, 2004 and declined by $ 720,000 compared to December 31, 2004. In
addition, our working capital deficiency improved by $ 1.1 million compared to
December 31, 2004."
About the Company
Eltek is Israel's leading manufacturers of printed circuit boards, the core
circuitry of most electronic devices. It specializes in the complex high-end of
PCB manufacturing, i.e., HDI, multi-layered and flex-rigid boards. Eltek's
technologically advanced circuitry solutions are used in today's increasingly
sophisticated and compact electronic products. The Company has invested heavily
in upgrading its production facilities over the past five years. For more
information, visit Eltek's World Wide Web site at www.eltekglobal.com.
CERTAIN MATTERS DISCUSSED IN THIS NEWS RELEASE ARE FORWARD-LOOKING STATEMENTS
THAT INVOLVE A NUMBER OF RISKS AND UNCERTAINTIES INCLUDING, BUT NOT LIMITED TO
STATEMENTS REGARDING EXPECTED RESULTS IN FUTURE QUARTERS, 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
FILINGS WITH THE UNITED STATES SECURITIES AND EXCHANGE COMMISSION.
ELTEK LTD.
CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except per share data)
CONVENIENCE CONVENIENCE
TRANSLATION TRANSLATION
------- -------
SIX MONTHS ENDED THREE MONTHS ENDED
REPORTED AMOUNTS JUNE 30, JUNE 30,
---------------------------------- ----------------------------------
2004 2005 2005 2004 2005 2005
(UNAUDITED) (UNAUDITED) (UNAUDITED) (UNAUDITED) (UNAUDITED) (UNAUDITED)
NIS NIS U.S. $ NIS NIS U.S. $
------- ------- ------- ------- ------- -------
Revenues 57,416 68,237 14,918 27,102 33,842 7,399
Costs of revenues (52,980)* (55,829) (12,206) (26,135)* (27,746) (6,066)
------- ------- ------- ------- ------- -------
GROSS PROFIT 4,436 12,408 2,712 967 6,096 1,333
Research and development, net - (351) (77) - (160) (35)
Selling, general and administrative
expenses (9,176) (9,205) (2,012) (4,547) (4,686) (1,025)
Amortization of goodwill (294) (300) (66) (147) (148) (32)
------- ------- ------- ------- ------- -------
OPERATING INCOME (LOSS) (5,034) 2,552 557 (3,727) 1,102 241
Financial expenses, net (1,816) (1,380) (301) (664) (766) (167)
------- ------- ------- ------- ------- -------
INCOME (LOSS) BEFORE OTHER EXPENSES, NET (6,850) 1,172 256 (4,391) 336 74
Other expenses, net (29)* (24) (5) (12)* (13) (3)
------- ------- ------- ------- ------- -------
INCOME (LOSS) BEFORE TAXES ON INCOME (6,879) 1,148 251 (4,403) 323 71
Taxes on income - - - 55 - -
------- ------- ------- ------- ------- -------
INCOME (LOSS) AFTER TAXES ON INCOME (6,879) 1,148 251 (4,348) 323 71
Minority share in subsidiary's net
results 38 152 33 69 138 30
------- ------- ------- ------- ------- -------
NET INCOME (LOSS) FOR THE PERIOD (6,841) 1,300 284 (4,279) 461 101
======= ======= ======= ======= ======= =======
BASIC AND DILUTED EARNINGS (LOSS) PER
NIS 1 PAR VALUE OF THE SHARE CAPITAL** (1.64) 0.16 0.03 (1.03) 0.11 0.02
======= ======= ======= ======= ======= =======
TOTAL PAR VALUE OF SHARES USED TO COMPUTE
BASIC AND DILUTED EARNINGS (LOSS) PER NIS
1 PAR VALUE OF SHARE 4,131 4,197 4,197 4,131 4,197 4,197
======= ======= ======= ======= ======= =======
* Reclassified
** Ordinary shares of a par value of NIS 0.6 each.
ELTEK LTD.
CONSOLIDATED CONDENSED BALANCE SHEETS
(IN THOUSANDS)
CONVENIENCE
TRANSLATION
-------
DECEMBER 31, JUNE 30, JUNE 30,
------- ------------------------- -------
2004 2004 2005 2005
REPORTED AMOUNTS (AUDITED) (UNAUDITED) (UNAUDITED) (UNAUDITED)
NIS NIS NIS U.S. $
------- ------- ------- -------
ASSETS
CURRENT ASSETS
Cash and cash equivalents 4,274 4,710 2,309 505
Receivables: Trade 23,835 18,786 25,249 5,520
Other 1,158 953 1,174 257
Inventories 13,633 13,004 13,788 3,014
Prepaid expenses 563 843 1,200 262
------- ------- ------- -------
TOTAL CURRENT ASSETS 43,463 38,296 43,720 9,558
------- ------- ------- -------
DEFERRED TAXES 753 - 708 155
------- ------- ------- -------
PROPERTY AND EQUIPMENT, NET 31,569 37,201 27,155 5,937
------- ------- ------- -------
GOODWILL 4,656 4,621 4,084 893
------- ------- ------- -------
TOTAL ASSETS 80,441 80,118 75,667 16,543
======= ======= ======= =======
LIABILITIES AND SHAREHOLDER'S EQUITY
CURRENT LIABILITIES
Short-term credit and current
maturities of long-term debts 19,589 21,235 18,830 4,117
Trade payables 23,577 21,214 19,338 4,228
Other liabilities and accrued
expenses 11,083 9,808 11,317 2,474
------- ------- ------- -------
TOTAL CURRENT LIABILITIES 54,249 52,257 49,485 10,819
------- ------- ------- -------
LONG- TERM LIABILITIES
Long term debt, excluding current
maturities 6,687 10,123 3,815 834
Employee severance benefits 1,048 988 1,131 247
------- ------- ------- -------
TOTAL LIABILITIES 61,984 63,368 54,431 11,900
------- ------- ------- -------
MINORITY INTERESTS 1,900 1,909 1,636 358
------- ------- ------- -------
CONVERTIBLE NOTE 1,566 1,532 1,720 376
------- ------- ------- -------
SHAREHOLDER'S EQUITY
Ordinary shares, NIS 0.6 par value
Authorized 50,000,000 shares,
issued
and outstanding 5,602,511 shares at
June 30, 2005 and 5,491,711 shares
at June 30, 2004 and at December
31, 2004 29,698 29,698 29,765 6,507
Additional paid in capital 52,500 52,500 54,553 11,927
Capital reserves related to loans
from controlling shareholders 10,010 10,010 10,010 2,188
Cumulative foreign currency
translation adjustments 2,574 1,878 2,043 447
Capital reserve 6,685 6,685 6,685 1,462
Accumulated deficit (86,476) (87,462) (85,176) (18,622)
------- ------- ------- -------
TOTAL SHAREHOLDER'S EQUITY 14,991 13,309 17,880 3,909
------- ------- ------- -------
TOTAL LIABILITIES AND SHAREHOLDERS'
EQUITY 80,441 80,118 75,667 16,543
======= ======= ======= =======
ELTEK LTD.
CONSOLIDATED STATEMENT OF CASH FLOWS
(In thousands)
THREE MONTHS ENDED CONVENIENCE
---------------------- TRANSLATION
JUNE 30 JUNE 30 JUNE 30
REPORTED AMOUNTS 2004 2005 2005
------ ------ ------
(UNAUDITED) (UNAUDITED) (UNAUDITED)
NIS NIS U.S. $
------ ------ ------
CASH FLOWS FROM OPERATING
ACTVITIES
Net income (loss) for the period (4,279) 461 101
ADJUSTMENT TO RECONCILE NET
INCOME (LOSS) TO NET CASHFLOWS
PROVIDED BY (USED FOR) OPERATING
ACTIVITIES:
Depreciation 3,453 2,699 590
Loss from disposal of fixed - 13 3
assets
Inflationary impact on long-term
debts 8 375 82
Minority share in subsidiary's
net results (69) (138) (30)
Amortization of goodwill 147 148 32
Increase (decrease) in employee
severance benefits, net (118) 52 11
Decrease (increase) in trade
receivables 1,633 (649) (142)
Decrease (increase) in other
receivables and prepaid expenses 203 (347) (76)
Decrease in trade payables (111) (2,024) (442)
Increase (decrease) in other
liabilities and accrued expenses 679 (769) (168)
Accrued interest on convertible
note 40 43 9
Decrease in inventories 137 85 19
------ ------ ------
NET CASH PROVIDED BY (USED FOR)
OPERATING ACTIVITIES 1,723 (51) (11)
------ ------ ------
CASH FLOWS FOR INVESTING
ACTIVITIES:
Purchase of fixed assets (391) (567) (124)
------ ------ ------
NET CASH USED FOR INVESTING
ACTIVITIES (391) (567) (124)
------ ------ ------
CASH FLOWS FROM FINANCING
ACTIVITIES:
Increase (decrease) in
short-term credit 238 (181) (40)
Repayment of long-term loans (1,236) (1,849) (404)
Proceeds from exercise of stock
options - 2,120 463
------ ------ ------
NET CASH GENERATED BY (USED FOR)
FINANCING ACTIVITIES (998) 90 19
------ ------ ------
ADJUSTMENTS FROM TRANSLATION OF
FINANCIAL STATEMENTS OF
AUTONOMOUS UNITS (34) (36) (8)
------ ------ ------
NET INCREASE (DECREASE) IN CASH
AND CASH EQUIVALENTS 300 (564) (124)
CASH AND CASH EQUIVALENTS AT
BEGINNING OF PERIOD 4,410 2,873 629
------ ------ ------
CASH AND CASH EQUIVALENTS AT
END OF PERIOD 4,710 2,309 505
====== ====== ======
ELTEK LTD.
CONSOLIDATED STATEMENT OF CASH FLOWS
(In thousands)
SIX MONTHS ENDED CONVENIENCE
----------------------- TRANSLATION
JUNE 30 JUNE 30 JUNE 30
REPORTED AMOUNTS 2004 2005 2005
------ ------ ------
(UNAUDITED) (UNAUDITED) (UNAUDITED)
NIS NIS U.S. $
------ ------ ------
CASH FLOWS FROM OPERATING
ACTVITIES
Net income (loss) for the period (6,841) 1,300 284
ADJUSTMENT TO RECONCILE NET
INCOME (LOSS) TO NET CASH FLOWS
PROVIDED BY OPERATING ACTIVITIES:
Depreciation 6,947 5,587 1,221
Loss from disposal of fixed assets - 24 5
Inflationary impact on long-term
debts 384 446 98
Minority share in subsidiary's
net results (38) (152) (33)
Amortization of goodwill 294 300 66
Increase in employee severance
benefit, net 49 88 19
Decrease (increase) in trade
receivables 989 (1,519) (332)
Decrease (increase) in other
receivables and prepaid expenses 1,152 (670) (146)
Decrease in trade payables (1,093) (4,179) (914)
Increase in other liabilities
and accrued expenses 1,268 384 84
Accrued interest on convertible
note 75 82 18
Decrease (increase) in
inventories 135 (257) (56)
------ ------ ------
NET CASH PROVIDED BY OPERATING
ACTIVITIES 3,321 1,434 314
------ ------ ------
CASH FLOWS FOR INVESTING
ACTIVITIES:
Purchase of fixed assets (821) (1,427) (312)
------ ------ ------
NET CASH USED FOR INVESTING
ACTIVITIES (821) (1,427) (312)
------ ------ ------
CASH FLOWS FROM FINANCING
ACTIVITIES:
Increase (decrease) in
short-term credit 41 (211) (46)
Repayment of long-term loans (2,171) (3,777) (826)
Proceeds from exercise of stock
options - 2,120 463
------ ------ ------
NET CASH USED FOR FINANCING
ACTIVITIES (2,130) (1,868) (409)
------ ------ ------
ADJUSTMENTS FROM TRANSLATION OF
FINANCIAL STATEMENTS OF
AUTONOMOUS UNITS (31) (104) (23)
------ ------ ------
NET INCREASE (DECREASE) IN CASH
AND CASH EQUIVALENTS 339 (1,965) (430)
CASH AND CASH EQUIVALENTS AT
BEGINNING OF PERIOD 4,371 4,274 935
------ ------ ------
CASH AND CASH EQUIVALENTS AT
END OF PERIOD 4,710 2,309 505
====== ====== ======
NON-CASH ACTIVITIES:
Conversion of convertible note
into additional paid in capital 879 - -
====== ====== ======
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned, thereunto duly authorized.
ELTEK LTD.
(Registrant)
By: /s/ Arieh Reichart
------------------
Arieh Reichart
President and Chief Executive Officer
Date: August 11, 2005