FORM 6 - K

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

Report of Foreign Private Issuer

Pursuant to Rule 13a - 16 or 15d -16
Under the Securities Exchange Act of 1934

For the Month of March 2017

Commission file number 000-28884

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 Form 20-F or Form 40-F.

Form 20-F ☒          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): ___________

This Form 6-K is being incorporated by reference into the Registrant’s Form S-8 Registration Statements File Nos. 333-130611 and 333-123559.

 
Signature
 
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/ Amnon Shemer  
    Amnon Shemer  
   
Vice President, Finance and
Chief Financial Officer
  

Dated:  March 27, 2017
 
 
Press Release
 
Eltek Reports Fourth Quarter and Full Year 2016 Financial Results
 
PETACH-TIKVA, Israel, March 27, 2017 - Eltek Ltd. (NASDAQ: ELTK), 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, 2016.

Mr. Yitzhak Nissan, Chairman of the Board and Chief Executive Officer, commented: "Our fourth quarter revenues of $8.1 million were lower than the $10.4 million of  revenues we had in the fourth quarter of 2015. The decrease was primarily attributable to the lower number of working days in the fourth quarter as compared to last year's fourth quarter, due to the local holiday season and the continued competition in the local military market. Our bottom line was also affected by two one-time expenses. The first was a $1.1 million write-off of a deferred tax asset, due to uncertainty about our ability to utilize it in the foreseeable future. The second was a $271,000 expense associated with the sale of all of our shares in Kubatronik-Leiterplatten GmbH, our German subsidiary, which had drawn significant resources from us for several years. We believe that the sale of Kubatronik will assist us to focus on improving our future results.

Although competitive pressures remain strong, we have made positive progress in improving our on-time delivery and manufacturing yields. In addition, we continue to enhance our working relations with our defense customers by providing advanced technological solutions that meet their needs. Eltek is also restructuring its sales organization in order to increase the top line. We believe that these steps will prove fruitful for us and will contribute to achieving our goal of becoming a leading company in our field in terms of technology, on-time delivery and product quality," Mr. Nissan concluded.

Highlights of the Full Year of 2016 compared to the Full Year of 2015
 
·
Revenues for the full year of 2016 amounted to $37.1 million; compared to revenues of $41.4 million in 2015, a decrease of approximately 10.4%.
 
·
Gross profit was $2.8 million (7.6% of revenues), compared to gross profit of $6.6 million (15.8% of revenues) in 2015;
 
·
Operating loss was $2 million compared to an operating profit of $1.5 million in 2015;
 
·
Net loss was $3.6 million or $0.36 per fully diluted share, compared to net profit of 1.0 million or $0.10 per fully diluted share in 2015. Before the $1.1 million write-off of a deferred tax asset and the $271,000 one-time expenses recorded in connection with our sale of Kubatronik, the net loss for the full year of 2016 (on a non-GAAP basis) was $2.3 million, $0.23 per fully diluted share.
 
·
EBITDA amounted to $(313,000) ((0.8%) of revenues) compared to $3.3 million (8.1% revenues) in 2015;
 
·
Net cash provided by operating activities amounted to $165,000 compared to $1.7 million in 2015;
 
·
Cash and cash equivalents as of December 31, 2016 were $1.2 million, compared to $1.0 million as of December 31, 2015. In addition, the Company had un-utilized lines of credit of $1.3 million as of December 31, 2016.
 
Highlights of the Fourth Quarter of 2016 compared to the Fourth Quarter of 2015
 
·
Revenues for the fourth quarter of 2016 were $8.1 million compared with revenues of $10.4 million in the fourth quarter of 2015;
 
·
Gross loss was $463,000 ((5.7%) of revenues) compared with a gross profit of $1.7 million (16.3% of revenues) in the fourth quarter of 2015;
 
·
Operating loss was $1.6 million compared to an operating profit of $455,000 in the fourth quarter of 2015;
 
·
Net loss was $3 million or $0.30 per fully diluted share compared to net profit of $228,000 or $0.02 per fully diluted share in the fourth quarter of 2015. The net loss for Q4-2016 (on a non-GAAP basis) was $1.7 million, $0.16 per fully diluted share before the one-time expenses recorded in the fourth quarter of 2016;.
 
·
EBITDA amounted to $(1.4) million ((17.2%) of revenues) compared to EBITDA of $940,000 (9% of revenues) in the fourth quarter of 2015;
 
·
Net cash used in operating activities amounted to $1.3 million, compared to $1.4 million of cash provided by operating activities in the fourth quarter of 2015.
 
Conference Call
 
Today, Monday, March 27, 2017 at 9:30 a.m. Eastern Time, Eltek will conduct a conference call to discuss the results. The call will feature remarks by Mr. Yitzhak Nissan, Chairman of the Board of Directors and Chief Executive Officer, Mr. Roberto Tulman, Deputy CEO and Chief Technology Officer, and Mr. Amnon Shemer, Chief Financial Officer.
 
To participate, please call the following teleconference numbers. Please allow for additional time to connect prior to the call:
 
United States:
1-888-407-2553
Israel:
03-9180685
International:
+972-3-9180685

At:

9:30 a.m. Eastern Time
6:30 a.m. Pacific Time
16:30 p.m. Israel Time

A replay of the call will be available through the Investor Info section on Eltek's corporate website at www.nisteceltek.com approximately 24 hours after the conference call is completed and will be archived for 30 days.
 
(Tables follow)
 
About Eltek
 
Eltek – "Innovation Across the Board", 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 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 in North America and Europe, 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.
 
Use of Non-GAAP Financial Information
 
The Company reports financial results in accordance with U.S. GAAP and herein provides some non-GAAP measures, including EBITDA. These non-GAAP measures are not in accordance with, nor are they a substitute for, GAAP measures. These non-GAAP measures are intended to supplement the Company's presentation of its financial results that are prepared in accordance with GAAP. The Company uses the non-GAAP measures presented to evaluate and manage the Company's operations internally. The Company is also providing this information to assist investors in performing additional financial analysis. Reconciliation between the company's results on a GAAP and non-GAAP basis is provided in a table below.
 
Safe Harbor for Forward Looking Statements:
 
This press release contains express or implied forward-looking statements within the Private Securities Litigation Reform Act of 1995 and other U.S Federal securities laws, 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 Annual Report on Form 20-F and in subsequent filings with the United States Securities and Exchange Commission. Except as otherwise required by law, Eltek is under no obligation to (and expressly disclaims any such obligation to) update or alter its forward-looking statements whether as a result of new information, future events or otherwise.

Investor Contact:
Nir Zalik
KM Investor relations
Tel: +972- 3-5167620
nir@km-ir.co.il
www.km-ir.co.il

Amnon Shemer
Chief Financial Officer
amnons@nisteceltek.com
+972-3-9395023

Consolidated Statements of Operations
(In thousands US$, except per share data)
 
   
Three months ended
    
Year ended
  
   
December 31,
    
December 31,
  
   
2016
    
2015
    
2016
    
2015
  
                         
Revenues
    
8,108
      
10,407
      
37,065
      
41,350
  
Costs of revenues
    
(8,571
)
    
(8,716
)
    
(34,248
)
    
(34,802
)
                                 
Gross profit
    
(463
)
    
1,692
      
2,817
      
6,548
  
                                 
Selling, general and administrative expenses
    
(1,130
)
    
(1,204
)
    
(4,699
)
    
(4,961
)
                                 
R&D expenses, net
    
(20
)
    
(33
)
    
(117
)
    
(90
)
                                 
Operating profit (loss)
    
(1,612
)
    
455
      
(1,999
)
    
1,497
  
                                 
Financial expenses, net
    
(98
)
    
(115
)
    
(309
)
    
(259
)
                                 
Profit (loss) before other income, net
    
(1,710
)
    
339
      
(2,308
)
    
1,238
  
                                 
Other income, net
    
(259
)
    
1
      
(259
)
    
6
  
                                 
Profit (loss) before income tax expenses
    
(1,969
)
    
340
      
(2,567
)
    
1,244
  
                                 
Tax expenses
    
(1,080
)
    
(142
)
    
(1,158
)
    
(218
)
                                 
Net Profit (loss)
    
(3,050
)
    
198
      
(3,725
)
    
1,026
  
                                 
Net loss attributable to non controlling interest
    
(43
)
    
(30
)
    
(101
)
    
(17
)
                                 
Net Profit (loss) attributable to Eltek Ltd.
    
(3,007
)
    
228
      
(3,624
)
    
1,043
  
                                 
Earnings per share
                                
Basic and diluted net gain (loss) per ordinary share
    
(0.30
)
    
0.02
      
(0.36
)
    
0.10
  
                                 
Weighted average number of ordinary shares
                                
used to compute basic and diluted net gain (loss) per
                                
ordinary share (in thousands)
    
10,143
      
10,143
      
10,143
      
10,143
  
 
Eltek Ltd.
Consolidated Balance Sheets
(In thousands US$)
 
   
December 31,
    
December 31,
  
   
2016
    
2015
  
Assets
            
             
Current assets
            
Cash and cash equivalents
    
1,234
      
1,038
  
Receivables: Trade, net of provision for doubtful accounts
    
5,704
      
8,015
  
                     Other
    
205
      
273
  
Inventories
    
3,926
      
4,450
  
Prepaid expenses
    
251
      
187
  
                 
Total current assets
    
11,320
      
13,963
  
                 
Deferred taxes
    
0
      
1,064
  
                 
Assets held for employees' severance benefits
    
50
      
49
  
                 
Fixed assets, less accumulated depreciation
    
8,453
      
10,067
  
                 
Intangible asset
    
322
      
276
  
                 
Total assets
    
20,145
      
25,419
  
                 
Liabilities and Shareholder's equity
                
                 
Current liabilities
                
Short-term credit and current maturities of long-term debts
    
2,868
      
1,275
  
Accounts payable: Trade
    
4,727
      
6,112
  
                            Other
    
3,818
      
4,594
  
                 
Total current liabilities
    
11,413
      
11,981
  
                 
Long-term liabilities
                
Long term debt, excluding current maturities
    
1,954
      
2,905
  
Employee severance benefits
    
144
      
289
  
                 
Total long-term liabilities
    
2,098
      
3,194
  
                 
Equity
                
Ordinary shares, NIS 0.6  par value authorized 50,000,000 shares, issued and outstanding 10,142,762
    
1,985
      
1,985
  
Additional paid-in capital
    
17,270
      
17,270
  
Cumulative foreign currency translation adjustments
    
1,815
      
1,892
  
Capital reserve
    
695
      
695
  
Accumulated deficit
    
(15,131
)
    
(11,507
)
Shareholders' equity
    
6,634
      
10,335
  
Non controlling interest
    
0
      
(91
)
Total equity
    
6,634
      
10,244
  
Total liabilities and shareholders' equity
    
20,145
      
25,419
  
Eltek Ltd.
Unaudited Non-GAAP EBITDA Reconciliations
(In thousands US$)
 
Non-GAAP EBITDA Reconciliations
  
Three months ended
    
Year ended
  
   
December 31,
    
December 31,
  
   
2016
    
2015
    
2016
    
2015
  
                         
GAAP net Income (loss)
    
(3,007
)
    
228
      
(3,624
)
    
1,043
  
Add back items:
                                
                                 
Financial expenses (income), net
    
98
      
116
      
309
      
259
  
Income tax expense
    
1,080
      
142
      
1,158
      
218
  
Depreciation and amortization
    
431
      
455
      
1,844
      
1,816
  
Adjusted EBITDA
    
(1,396
)
    
940
      
(313
)
    
3,335
  
 
Eltek Ltd.
Unaudited Non-GAAP Reconciliations
(In thousands US$)
 
   
Three months ended
    
Year ended
  
   
December 31,
    
December 31,
  
   
2016
    
2015
    
2016
    
2015
  
                         
GAAP net Income (loss)
    
(3,007
)
    
228
      
(3,624
)
    
1,043
  
Add back items:
                                
                                 
Decrease (increase) in deferred tax assets
    
1,063
              
1,063
          
Sale of Kubatronik
    
271
              
271
          
Net Profit (loss) before change in deferred tax assets,
management downsizing and an impairment of goodwill (non-GAAP)
    
(1,673
)
    
228
      
(2,290
)
    
1,043
  
                                 
Basic and diluted net gain (loss) per ordinary share
    
(0.16
)
    
0.02
      
(0.23
)
    
0.10
  
 
Eltek Ltd.
Consolidated Statement of  Cash flow
(In thousands US$, except per share data)
 
   
Three months ended
    
Year ended
  
   
December 31,
    
December 31,
  
   
2016
    
2015
    
2016
    
2015
  
Cash flows from operating activities:
                        
                         
Net Income (loss)
    
(3,050
)
    
228
      
(3,725
)
    
1,026
  
                                 
Adjustments to reconcile net loss to net
                                
 cash flows provided by operating activities:
                                
Depreciation and amortization
    
443
      
408
      
1,856
      
1,731
  
Capital lose on disposal of fixed assets, net
    
(12
)
    
9
      
(12
)
    
85
  
Revaluation of long term loans
    
-
      
133
      
1
      
10
  
Decrease (increase) in Deferred Tax
    
1,062
      
(7
)
    
1,083
      
133
  
     
1,492
      
657
      
2,929
      
1,959
  
                                 
Decrease (increase) in trade receivables
    
641
      
142
      
2,143
      
171
  
Decrease (increase) in other receivables and prepaid expenses
    
17
      
277
      
(97
)
    
249
  
Decrease (increase) in inventories
    
504
      
158
      
289
      
213
  
Increase (decrease) in trade payables
    
(378
)
    
(311
)
    
(561
)
    
(1,396
)
Increase (decrease) in other liabilities and accrued expenses
    
(409
)
    
157
      
(664
)
    
(543
)
Increase (decrease) in employee severance benefits, net
    
(148
)
    
61
      
(150
)
    
41
  
     
226
      
484
      
961
      
(1,265
)
                                 
Net cash provided by operating activities
    
(1,331
)
    
1,370
      
165
      
1,720
  
                                 
                                 
Proceeds from sale of investments in previously consolidated subsidiaries:
                          
                                 
The subsidiaries' assets and liabilities at date of sale:
                                
                                 
Trade accounts receivable net
    
290
      
-
      
290
          
Inventories
    
298
      
-
      
298
          
Prepaid and other current assets
    
107
      
-
      
107
          
Assets held for employees' severance benefits
    
-
      
-
      
-
          
Property, plant and equipment
    
537
      
-
      
537
          
     
-
      
-
      
-
          
deferred Tax - Long Term
    
-
      
-
      
-
          
Goodwill/intangible asset
    
(0
)
    
-
      
(0
)
        
Short-term credit
    
-
      
-
      
-
          
Trade
    
(604
)
    
-
      
(604
)
        
Other
    
(185
)
    
-
      
(185
)
        
Long-term debt, including current maturities
    
(112
)
    
-
      
(112
)
        
Employee severance benefits
    
(276
)
    
-
      
(276
)
        
Investment in company accounted for at equity
    
191
      
-
      
191
          
     
245
      
-
      
245
          
                                 
Cash flows from investing activities:
                                
Owners investment
                                
Purchase of fixed assets
    
(146
)
    
(194
)
    
(708
)
    
(797
)
Purchase of Intangible asset
    
-
      
(69
)
    
(43
)
    
(69
)
Net cash used in investing activities
    
(146
)
    
(263
)
    
(750
)
    
(866
)
                                 
Cash flows from financing activities:
                                
Increase (decrease) in short- term credit
    
1,657
      
(1,083
)
    
1,589
      
(2,063
)
Repayment of long-term loans from bank
    
(175
)
    
(76
)
    
(680
)
    
(207
)
Proceeds from long-term loans
    
199
      
-
      
199
      
1,707
  
Repayment of credit from fixed asset payables
    
(83
)
    
(136
)
    
(635
)
    
(505
)
Net cash provided by (used in) financing activities
    
1,598
      
(1,294
)
    
473
      
(1,068
)
                                 
Effect of translation adjustments
    
25
      
7
      
37
      
123
  
                                 
Net increase (decrease) in cash and cash equivalents
    
392
      
(181
)
    
196
      
(91
)
                                 
Cash and cash equivalents at beginning of the period
    
842
      
1,179
      
1,038
      
1,129
  
                     
-
          
Cash and cash equivalents at period end
    
1,234
      
998
      
1,234
      
1,038
  
     
1,234
      
998
      
1,208
      
1,038